40
Global Supplier Rear Adm. Mark F. Heinrich Commander Naval Supply Systems Command and Chief of Supply Corps Forward Logistics O Ranking the Supply Chain O Greening the DoD Corrosion Control O Rock Island Arsenal O Demand Planning April 2012 V olume 6, I ssue 3 www.MLF-kmi.com The Publication of Record for the Military Logistics Community U.S. NAVY NAVAL AIR SYSTEMS COMMAND SPECIAL PULL-OUT SUPPLEMENT REAR ADM. (SELECT) CINDY L. “CJ” JAYNES Assistant Commander, Logistics and Industrial Operations Exclusive Interview with:

MLF 6-3 (April 2012)

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Page 1: MLF 6-3 (April 2012)

Global SupplierRear Adm Mark F HeinrichCommanderNaval Supply Systems Command and Chief of Supply Corps

Forward Logistics O Ranking the Supply Chain O Greening the DoDCorrosion Control O Rock Island Arsenal O Demand Planning

April 2012Volume 6 Issue 3

wwwMLF-kmicom

The Publication of Record for the Military Logistics Community

US Navy Naval air SyStemS CommaNd

Special pull-out Supplement

ReaR adm (Select) cindy l ldquocJrdquo JayneSAssistant Commander Logistics and Industrial Operations

Exclusive Interview with

A new generation strengthens the whole family

As the only company in the world delivering 5th generation fighter engines Pratt amp Whitneyrsquos F135 engine powering the F-35 Lightning II is in production Our technological advancements ensure the most affordable life cycle solutions to meet the challenges of todayrsquos military ndash while enhancing the safety and reliability of our entire family of military engines Learn more at f135enginecom

Client Pratt amp Whitney Military EnginesAd Title CTOL New GenerationPublication Military Logistics Forum - 412012Trim 8-38rdquo x 10-78rdquo bull Bleed 8-78rdquo x 11-38rdquo bull Live 14rdquo inside of trim

Itrsquos in our powertrade

26545_CTOL_MilitaryLogisticsForum_F35indd 1 32812 854 AM

Military logistics ForuM april 2012 VoluMe 6 bull issue 3

Features coVer Qampa

16

DepartMents

Donald J WetekamSenior Vice President Government amp

defense Business developmentaaR corp

28

Rear Admiral Mark F Heinrichcommander naval Supply Systems

command and chief of Supply corps

2

14

27

Editorrsquos Perspective

Supply Chain

Calendar Directory

inDustry interView23

Moving Logistics Forward logistics is almost always a challenge perhaps never more so than to landlocked afghanistan connecting every mode of transport has resulted in an effective supply chainBy JB Bissell

25

Ranking the Supply Chain Industrymarket research looks at metrics to develop a comparable ranking of the industrial supply chain elements for the aerospace and defense market Gartner discusses its 7th annual Supply chain top 25By Ray Barger Jr and Jane Feitler

21

Demand Planninglong gone are the days of Ouija board logistics todayrsquos supply chains are managed to every detail Being able to predict with sufficient accuracy the demand for supplies parts is becoming more criticalBy Bill murray

12

Greening the DoDdod is the single largest energy consumer in the US accounting for about 90 percent of federal use its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases)By Heather Baldwin

exclusive interview withRear Admiral (Select) Cindy L ldquoCJrdquo Jaynes assistant commander logistics and industrial Operations

Top Critical Contracts

US naVy naVal aiR SyStemS cOmmandlOGiSticS and indUStRial OPeRatiOnSSPecial PUll-OUt SUPPlement

6

4

Cutting the Rust dealing with corrosion of military equipment requires huge expenditures of money and manpower the logistics management institute estimates that dod spends $225 billion annually on corrosion maintenance and repair By Henry canaday

7

Rock Island ArsenalMilitary Logistics Forum recently had the chance to interview colonel James Fly Jr the commander of the Rock island arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the army of the future

1

The United States is the only truly globally-capable military force that can project and maintain a force outside of its borders for any length of time without the good graces of others The simple fact as to why that is possible comes down to logistics and the fact that we have the people and the resources to make that happen

Even though logisticians have been doing logistics for a long timemdashall of historymdashthere is always something to learn and some-thing to be taught It is clear that global logistics needs big thinkers that look beyond how best to pack a ship with stuff and push it away from the dock We need to enhance the lines of professional logistics education and training to develop the kind of big thinking that allows a military to sustain a force of plus or minus 90000 in Afghanistan while the majority of the major overland lines of communications have been turned off The answer is not always about throwing more money at an issue but itrsquos about doing a whole lot of right things at the right time Education training schooling and OJT can be blended into the perfect logistician

In a different direction we had the pleasure of interviewing Alan Estevez assistant secretary of defense for logistics and materiel readiness for the March issue of Military Logistics Forum After going to print we realized that we had not made some of the edits that we had planned on makingmdashit is always a challenge going from the spoken word to the written word We wanted to capture the full flavor of his comments and as such we made those edits in the online version which is posted on our website I encourage everyone to revisit his interview online especially in light of his comments and the panel discussions from the NDIA Logistics Conference

If you want to smile search for the video called ldquobroken escalatorrdquo It was played during two separate sessions at the logistics conference and Irsquom not quite sure what the message was except wemdashthe collective wemdashdo not want to become what they are

Publication of Record for the Military Logistics Community

eDitorialEditor-In-ChiefJeff McKaughan jeffmkmimediagroupcomManaging EditorHarrison Donnelly harrisondkmimediagroupcomOnline Editorial ManagerLaura Davis lauradkmimediagroupcomCopy EditorLaural Hobbes lauralhkmimediagroupcomCorrespondentsHeather Baldwin bull Peter Buxbaum bull Henry Canaday bull Cheryl Gerber bull Leslie Shaver

art amp Design

Art DirectorJennifer Owers jenniferokmimediagroupcom Senior DesignerJittima Saiwongnuan jittimaskmimediagroupcomGraphic Designers Amanda Kirsch amandakkmimediagroupcom Scott Morris scottmkmimediagroupcom Kailey Waring kaileywkmimediagroupcom

aDVertising

Associate PublisherJane Engel janekmimediagroupcom

KMi MeDia group

PublisherKirk Brown kirkbkmimediagroupcom Chief Executive OfficerJack Kerrigan jackkmimediagroupcomChief Financial OfficerConstance Kerrigan connikkmimediagroupcomExecutive Vice PresidentDavid Leaf davidlkmimediagroupcom Editor-In-ChiefJeff McKaughan jeffmkmimediagroupcomControllerGigi Castro gcastrokmimediagroupcomAdministrative AssistantCasandra Jones casandrajkmimediagroupcomTrade Show CoordinatorHolly Foster hollyfkmimediagroupcom

operations circulation amp proDuction

Circulation amp Marketing Administrator Duane Ebanks duaneekmimediagroupcomData Specialists Rebecca Hunter rebeccahkmimediagroupcom Tuesday Johnson tuesdayjkmimediagroupcom Raymer Villanueva raymervkmimediagroupcom Summer Walker summerwkmimediagroupcom Donisha Winston donishawkmimediagroupcom

a prouD MeMber oF

subscription inForMationMilitary Logistics Forum

ISSN 1937-9315 is published 10 times a year by KMI Media Group

All Rights Reserved Reproduction without permission is strictly forbidden copy Copyright 2012

Military Logistics Forum is free to qualified members of the US military employees of the US government

and non-US foreign service based in the US All others $65 per year Foreign $149 per year

Corporate OfficesKMI Media Group

15800 Crabbs Branch Way Suite 300 Rockville MD 20855-2604 USA

Telephone (301) 670-5700 Fax (301) 670-5701

Web wwwMLF-kmicom

Military logistics ForuM

VoluMe 6 issue 3 april 2012

Jeffrey D McKaughanEditor-iN-CHiEF

EDITORrsquoS PERSPECTIVE

KMi MeDia group Magazines anD websites

wwwGIF-kmicom

Geospatial Intelligence

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Military AdvancedEducation

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US Coast Guard Forum

maersklinelimitedcom Every Voyage has a Purpose

We have supported our armed forces for almost three decades by deploying our ships and utilizing our assets ashore Our commitment to US troops extends beyond our daily operations to partnerships with charitable organizations that support service members and their families We are proud of the role we play in their success

Dealing with corrosion of military equip-ment requires huge expenditures of money and manpower Corrosion can also hamper performance of fielded assets or require tak-ing them out of action for major clean-up efforts The Defense Department is now mak-ing strenuous efforts to reduce the cost of rust in the future

ldquoThere is lots of aging infrastructure and equipment and the military must do more with less so corrosion has gotten a higher priority in the last few yearsrdquo summarized Bill Haynes division manager for corrosion technology at SAIC

SAIC consultant Dail Thomas cited a Logistics Management Institute estimate that the Defense Department spends $225 bil-lion annually on corrosion maintenance and repair

Navy and Marine Corps aviation incurs $3 billion in annual corrosion costs while the Coast Guard incurs $03 billion The Air Force spends $54 billion and the Army $24 billion just on ground vehicles Navy ships add $32 billion to the annual corrosion bill and Marine ground vehicles $05 billion Cor-rosion on Army aviation and missiles cost $14 billion Finally defense facilities infrastruc-ture and other equipment cost $7 billion

Congress enacted legislation in December 2002 giving the Office of the Under Secretary

of Defense for Acquisition Technology and Logistics overall responsibility for preventing and mitigating effects of corrosion on mili-tary equipment and infrastructure Program managers for new Category I acquisitions must assemble teams of corrosion specialists during the acquisition process

Corrosion prevention pays extremely high returns if done early in design Thomas said one alternative a service life extension program is expensive partly because it is hard to make changes when assets have been deployed

Designs for corrosion protection can include surface protection cathodic pro-tection for underwater parts painting and advanced materials Structural parts use steel or aluminum which must get surface treat-ment to resist corrosion Thomas said ldquoAnd when the engineers use a mix of materials they must have a good process to mitigate galvanic corrosionrdquo

ldquoCorrosion is a concern across all assets especially today as there are fewer procure-ment programs on the horizon to replace legacyrdquo explained Matthew Koch program manager corrosion prevention and control (CPAC) at Marine Corps Systems Command

Like other services Marines are being asked to extend service lives well beyond their original equipment design One

example is the amphibious assault vehicle (AAV-7) After cancellation of the expedition-ary fighting vehicle (EFV) AAVs will continue to be used by Marines for many years to come

CPAC supports all ground equipment in Marine Corps Koch said his current focus is on armored vehicles and heavy combat systems but CPAC also supports tactical and ground equipment

Koch said corrosion challenges arise from three basic sources design environment and maintenance Many current systems origi-nated in the 1960s and 1970s when a 20-year service life was not considered And corrosion control must always compete with function-ality in all designs so trade-offs are inevitable

Moreover Marines operate in tough envi-ronmentsmdashin and around oceans in tropical climates and other environments that pro-mote corrosion ldquoIt is impossible to predict where a vehicle might be usedrdquo Koch empha-sized ldquoDesigning for every possible environ-ment is not practicalrdquo

Maintenance is the last chance to correct and prevent corrosion Modern equipment has better corrosion control and requires less frequent maintenance Legacy equipment requires bigger maintenance investment For-tunately reset after return from deployment allows smart investment in corrosion control and can even extend the life of equipment

The silenT eaTer of sTeel sTeals Time and money

By henry Canaday

mlf CorrespondenT

wwwMLF-kmicom4 | MLF 63

Supplemental maintenance with cor-rosion preventative compounds is used on Marine legacy equipment in annual and semi-annual maintenance During major rebuild or repainting programs material upgrades can further protect equipment but this cannot be done at operating units

For new equipment material selection and improved coatings enhance corrosion resistance Koch said use of non-metallic materials helps and isolating dissimilar metals assists in preventing galvanic cor-rosion Otherwise ldquothe loss of one metal is accelerated by contact with a different metalrdquo

Coating improvements include electro-deposited coatings (e-coat) for primers sac-rificial coatings and specialty coatings that provide mechanical and abrasion resistance in addition to corrosion protection

Designers of new equipment can also avoid creating areas that are difficult to paint that trap corrosion-inducing con-taminants or that cannot be cleaned maintained or repaired Designing out corrosion-prone areas improves corrosion

resistance at much less cost than future maintenance or redesign

Koch said better storage can also reduce corrosion of current equipment For example warehousing vehicles in pro-tective shelters with dehumidification will stop almost all corrosion

CPAC continually explores new anti-corrosion technologies But Koch said it is tough to find new technologies that fit with other equipment requirements Anti-corrosion technology must be com-patible with chemical agent resistant coat-ing (CARC) meet wear and grounding requirements be usable by the organic and commercial support base and fit cur-rent maintenance philosophies for ground vehicles

Private companies are working hard on the corrosion challenge especially for existing equipment

Daubert Chemical makes temporary rust preventatives to military specifica-tions for short- or long-term protection explained Frank Vella director of indus-trial coating sales

Short-term protection is afforded by light oil films with added rust preventa-tives that are easy to remove Mid-term protection is done with grease and waxes for good protection on uncovered equip-ment left outdoors Long-term protection comes from petroleum jelly and metal ions In all there are five grades of anti-corrosion protection

The Navy one of the hardest chal-lenges uses heavier protection for cables and ship exteriors and for ships in dry dock especially for inaccessible areas that may accumulate water

ldquoWe have been around since 1935 and doing military specs for 25 yearsrdquo Vella stressed About a quarter of Daubertrsquos business is military Vella is seeing more emphasis on environment-friendly rust prevention and Daubert is researching water-based coatings to replace solvent-based products to meet that need

Sherwin-Williams offers a full comple-ment of anti-corrosion products start-ing with pretreatment wash primers and extending up to primer layers according

Reusable minimal application time and covered in under an hour

Thatrsquos a promise

Protective flexible moisture barrier covers to fit a pistol or a missile launcher

Thatrsquos a guarantee

No Corrosion for Five + Years

wwwMLF-kmicom MLF 63 | 5

to Beth Ann Pearson military product line manager

Sherwin-Williams is a qualified sup-plier for epoxy primers identified in the MIL-DTL-53022E specification for fast-drying corrosion-inhibiting epoxy prim-ers for ferrous and non-ferrous substrates Components on mine resistant ambush protected vehicles (MRAPs) MRAP all-ter-rain vehicles and high mobility multipur-pose wheeled vehicles use these primers The company is the first approved supplier for Type IV enhanced corrosion primer with zero volatile organic content and is an approved supplier of water-based corrosion-inhibiting epoxy primers

Zinc-rich epoxies were added to MIL-DTL-53072 in 2011 and Sherwin-Williams offers one- and two-component solvent-based zinc-rich epoxy primers and several water-borne zinc epoxy primers The two-component system is used on MRAPs Finally Sherwin-Williams supplies MIL-PRF-32348 powder coatings for metallic substrates

Sherwin-Williams was the first com-pany approved under military specifica-tions for extended corrosion protection The company also offers multiple cure technologies for special application and cure challenges

Pearson said her entire industry is working on next-generation technologies to support Defensersquos Corrosion Prevention and Mitigation Strategic Plan ldquoThere are several developmental and research pro-grams underway focusing on wash primers and unique pre-treatment chemistriesrdquo she said Compact systems used in the auto industry are beginning to move into military coatings Powder coating in place of electro-coating is another trend And Sherwin-Williams is introducing epoxy aerosols which allow for a single con-tainer application for easy touch-up and repair and perhaps even small application jobs

PPG Industries makes coatings and engineered materials to mitigate corro-sion for all the services according to Heather Stephan military protective coat-ings manager These include pre-treat-ments primers topcoats and materials such as polyurea coatings ldquoWe have pow-der coatings a variety of liquid coatings and e-coatrdquo PPG provides PSX engineered Polysiloxane coatings nearly solvent-free and with unlimited re-coatability to the US Coast Guard and Navy

For decades PPG provided coatings for the auto industry and was the first company to provide e-coat to create an encapsulating barrier between steel and elements causing corrosion It now pro-vides zirconium pretreatments for e-coat to the auto industry and is working with the US military to qualify the same tech-nology where e-coats are used

PPGrsquos Durabed polyurea coating was the first bed liner used by auto makers As Mil-Tough it is used for military ground equipment ldquoThese products provide supe-rior abrasion resistance to protect ground vehicles and equipment in extremely harsh conditionsrdquo Stephan said They can be top-coated with CARC for further protection

Mil-Toughrsquos XP version provides extreme protection in abrasive environ-ments The BR version is optimized for blasts SM optimized for ballistics and FR for fire resistance

PPG has developed e-coat solutions for auto fasteners and is optimizing them for military requirements It is now con-centrating on wash primers and zinc-rich primers to enhance corrosion protection of its existing coatings

ldquoWhen people need long-term protec-tion and preservation we go in to deter-mine objectives find out what is being protected against what and for how long and how much access is neededrdquo explained Steve Hanna president of Protective Pack-aging ldquoThen we recommend a solutionrdquo Solutions can involve vapor corrosion inhibitors (VCI) bubble or shrink wraps and other technologies

Protective does 40 percent of its busi-ness for the military either directly or for shippers or defense contractors as with Boeingrsquos joint direct attack munition If necessary it can warranty that vapor will not exceed 15 percent for 20 years

Protective provides covers for MIM-104 Patriot launchers and does a lot of work for equipment left behind by deployed National Guard units for example the trucks and trailers of the Massachusetts National Guard It has just completed pro-tection for F-35 joint strike fighters sent on ships to foreign customers

Protectiversquos toughest challenge was protecting a radar unit in the South Pacific ldquoWe designed it here and spent two weeks trying to cover it but the wind never went below 40 miles per hourrdquo Hanna remem-bered ldquoThey told us to go home and they would put it on when the wind died down If

we had known this we would have designed a smaller cover so we could get it onrdquo

Protective can guard against corrosion ultraviolet (UV) rays dust mildew mold ldquoyou name itrdquo Hanna said ldquoA long time ago they would just put cosmoline on it but in 40 years you have to chip that off with chiselrdquo He emphasized there is no one-size-fits all anti-corrosion solution but each must be tailored to specific needs

Transhield makes tarps that fit over military equipment and are waterproof breathable have VCIs that bind with fer-rous metal and can reduce corrosion 85 to 95 percent said Jeff Holt director of government sales The equipment also pro-tects against temperature spikes from UV rays that damage electric cables and rubber seals condense water and thus cause cor-rosion inside vehicles

The company is the preferred provider for Marines having delivered 20000 cov-ers and the Army and Navy are interested Its covers protect generators AAVs light armored vehicles the M1 Abrams and M109 Paladin Current Transhield covers last for two to four years although VCIs last longer

Transhield is working on a new prod-uct Armadillo that will last three to five years be more breathable and add protec-tion against biological damage from mold fungus and mildew

Milspray Military Technologies offers a mobile corrosion repair facility on wheels and technicians for deployment to bases of heavy assets equipment and weapons explained Marketing Manager and Chemi-cal Engineer Chantel Robinson ldquoWe do corrosion repair prevention and mainte-nance on siterdquo

Milspray has deployed at 48 sites in four years including six in Japan but none in Iraq or Afghanistan The mobile facilities can also do CARC painting drop and reap-ply armor coat undercarriages and vehicle bed-liners and do minor maintenance on common parts

Milspray is now adding some new touch-up paint products The company works for the Marine Corps O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwMLF-kmicom6 | MLF 63

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

QUAD CITIESi wireless Center 1201 River Drive Moline IL

2012 Midwest Small Business Government Contracting Symposium

May 22-24 20I2

IOWA

ILLINOISOISOISO

500miles

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300miles

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Minneapolis

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Omaha

Chicago

St Louis

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Mississip

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DetroitMilwaukeeMadison

Des Moines

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QUAD CITIESQUAD CITIES

2012 Midwest Small Business

For more information and to register for the Symposium visit wwwndia-ia-ilorg

bull BI-STATE REGION INCLUDING CITIES OF MOLINE EAST MOLINE ROCK ISLAND DAVENPORT AND BETTENDORF

bull HOME OF ROCK ISLAND ARSENAL A MAJOR MILITARY INSTALLATION

bull EFFICIENT MULTIMODAL TRANSPORTATION OPTIONS

bull POWER RATES SIGNIFICANTLY LOWER THAN NATIONAL AVERAGE

bull LARGEST 300-MILE MARKET WEST OF CHICAGO

bull 428000-STRONG LABOR FORCE (AND GROWING)

About the Quad Citiesbull 40 COLLEGES AND

UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

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bull Identify new business opportunity

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bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

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Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

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Compatible WithSmart Grid Technology

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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dex

is pr

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 2: MLF 6-3 (April 2012)

A new generation strengthens the whole family

As the only company in the world delivering 5th generation fighter engines Pratt amp Whitneyrsquos F135 engine powering the F-35 Lightning II is in production Our technological advancements ensure the most affordable life cycle solutions to meet the challenges of todayrsquos military ndash while enhancing the safety and reliability of our entire family of military engines Learn more at f135enginecom

Client Pratt amp Whitney Military EnginesAd Title CTOL New GenerationPublication Military Logistics Forum - 412012Trim 8-38rdquo x 10-78rdquo bull Bleed 8-78rdquo x 11-38rdquo bull Live 14rdquo inside of trim

Itrsquos in our powertrade

26545_CTOL_MilitaryLogisticsForum_F35indd 1 32812 854 AM

Military logistics ForuM april 2012 VoluMe 6 bull issue 3

Features coVer Qampa

16

DepartMents

Donald J WetekamSenior Vice President Government amp

defense Business developmentaaR corp

28

Rear Admiral Mark F Heinrichcommander naval Supply Systems

command and chief of Supply corps

2

14

27

Editorrsquos Perspective

Supply Chain

Calendar Directory

inDustry interView23

Moving Logistics Forward logistics is almost always a challenge perhaps never more so than to landlocked afghanistan connecting every mode of transport has resulted in an effective supply chainBy JB Bissell

25

Ranking the Supply Chain Industrymarket research looks at metrics to develop a comparable ranking of the industrial supply chain elements for the aerospace and defense market Gartner discusses its 7th annual Supply chain top 25By Ray Barger Jr and Jane Feitler

21

Demand Planninglong gone are the days of Ouija board logistics todayrsquos supply chains are managed to every detail Being able to predict with sufficient accuracy the demand for supplies parts is becoming more criticalBy Bill murray

12

Greening the DoDdod is the single largest energy consumer in the US accounting for about 90 percent of federal use its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases)By Heather Baldwin

exclusive interview withRear Admiral (Select) Cindy L ldquoCJrdquo Jaynes assistant commander logistics and industrial Operations

Top Critical Contracts

US naVy naVal aiR SyStemS cOmmandlOGiSticS and indUStRial OPeRatiOnSSPecial PUll-OUt SUPPlement

6

4

Cutting the Rust dealing with corrosion of military equipment requires huge expenditures of money and manpower the logistics management institute estimates that dod spends $225 billion annually on corrosion maintenance and repair By Henry canaday

7

Rock Island ArsenalMilitary Logistics Forum recently had the chance to interview colonel James Fly Jr the commander of the Rock island arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the army of the future

1

The United States is the only truly globally-capable military force that can project and maintain a force outside of its borders for any length of time without the good graces of others The simple fact as to why that is possible comes down to logistics and the fact that we have the people and the resources to make that happen

Even though logisticians have been doing logistics for a long timemdashall of historymdashthere is always something to learn and some-thing to be taught It is clear that global logistics needs big thinkers that look beyond how best to pack a ship with stuff and push it away from the dock We need to enhance the lines of professional logistics education and training to develop the kind of big thinking that allows a military to sustain a force of plus or minus 90000 in Afghanistan while the majority of the major overland lines of communications have been turned off The answer is not always about throwing more money at an issue but itrsquos about doing a whole lot of right things at the right time Education training schooling and OJT can be blended into the perfect logistician

In a different direction we had the pleasure of interviewing Alan Estevez assistant secretary of defense for logistics and materiel readiness for the March issue of Military Logistics Forum After going to print we realized that we had not made some of the edits that we had planned on makingmdashit is always a challenge going from the spoken word to the written word We wanted to capture the full flavor of his comments and as such we made those edits in the online version which is posted on our website I encourage everyone to revisit his interview online especially in light of his comments and the panel discussions from the NDIA Logistics Conference

If you want to smile search for the video called ldquobroken escalatorrdquo It was played during two separate sessions at the logistics conference and Irsquom not quite sure what the message was except wemdashthe collective wemdashdo not want to become what they are

Publication of Record for the Military Logistics Community

eDitorialEditor-In-ChiefJeff McKaughan jeffmkmimediagroupcomManaging EditorHarrison Donnelly harrisondkmimediagroupcomOnline Editorial ManagerLaura Davis lauradkmimediagroupcomCopy EditorLaural Hobbes lauralhkmimediagroupcomCorrespondentsHeather Baldwin bull Peter Buxbaum bull Henry Canaday bull Cheryl Gerber bull Leslie Shaver

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Art DirectorJennifer Owers jenniferokmimediagroupcom Senior DesignerJittima Saiwongnuan jittimaskmimediagroupcomGraphic Designers Amanda Kirsch amandakkmimediagroupcom Scott Morris scottmkmimediagroupcom Kailey Waring kaileywkmimediagroupcom

aDVertising

Associate PublisherJane Engel janekmimediagroupcom

KMi MeDia group

PublisherKirk Brown kirkbkmimediagroupcom Chief Executive OfficerJack Kerrigan jackkmimediagroupcomChief Financial OfficerConstance Kerrigan connikkmimediagroupcomExecutive Vice PresidentDavid Leaf davidlkmimediagroupcom Editor-In-ChiefJeff McKaughan jeffmkmimediagroupcomControllerGigi Castro gcastrokmimediagroupcomAdministrative AssistantCasandra Jones casandrajkmimediagroupcomTrade Show CoordinatorHolly Foster hollyfkmimediagroupcom

operations circulation amp proDuction

Circulation amp Marketing Administrator Duane Ebanks duaneekmimediagroupcomData Specialists Rebecca Hunter rebeccahkmimediagroupcom Tuesday Johnson tuesdayjkmimediagroupcom Raymer Villanueva raymervkmimediagroupcom Summer Walker summerwkmimediagroupcom Donisha Winston donishawkmimediagroupcom

a prouD MeMber oF

subscription inForMationMilitary Logistics Forum

ISSN 1937-9315 is published 10 times a year by KMI Media Group

All Rights Reserved Reproduction without permission is strictly forbidden copy Copyright 2012

Military Logistics Forum is free to qualified members of the US military employees of the US government

and non-US foreign service based in the US All others $65 per year Foreign $149 per year

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Telephone (301) 670-5700 Fax (301) 670-5701

Web wwwMLF-kmicom

Military logistics ForuM

VoluMe 6 issue 3 april 2012

Jeffrey D McKaughanEditor-iN-CHiEF

EDITORrsquoS PERSPECTIVE

KMi MeDia group Magazines anD websites

wwwGIF-kmicom

Geospatial Intelligence

Forum

wwwMAE-kmicom

Military AdvancedEducation

wwwMIT-kmicom

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wwwMLF-kmicom

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Forum

wwwMMT-kmicom

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Technology

wwwGCT-kmicom wwwMT2-kmicom wwwSOTECH-kmicom wwwTISR-kmicom wwwUSCGF-kmicom

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Tactical ISR Technology

US Coast Guard Forum

maersklinelimitedcom Every Voyage has a Purpose

We have supported our armed forces for almost three decades by deploying our ships and utilizing our assets ashore Our commitment to US troops extends beyond our daily operations to partnerships with charitable organizations that support service members and their families We are proud of the role we play in their success

Dealing with corrosion of military equip-ment requires huge expenditures of money and manpower Corrosion can also hamper performance of fielded assets or require tak-ing them out of action for major clean-up efforts The Defense Department is now mak-ing strenuous efforts to reduce the cost of rust in the future

ldquoThere is lots of aging infrastructure and equipment and the military must do more with less so corrosion has gotten a higher priority in the last few yearsrdquo summarized Bill Haynes division manager for corrosion technology at SAIC

SAIC consultant Dail Thomas cited a Logistics Management Institute estimate that the Defense Department spends $225 bil-lion annually on corrosion maintenance and repair

Navy and Marine Corps aviation incurs $3 billion in annual corrosion costs while the Coast Guard incurs $03 billion The Air Force spends $54 billion and the Army $24 billion just on ground vehicles Navy ships add $32 billion to the annual corrosion bill and Marine ground vehicles $05 billion Cor-rosion on Army aviation and missiles cost $14 billion Finally defense facilities infrastruc-ture and other equipment cost $7 billion

Congress enacted legislation in December 2002 giving the Office of the Under Secretary

of Defense for Acquisition Technology and Logistics overall responsibility for preventing and mitigating effects of corrosion on mili-tary equipment and infrastructure Program managers for new Category I acquisitions must assemble teams of corrosion specialists during the acquisition process

Corrosion prevention pays extremely high returns if done early in design Thomas said one alternative a service life extension program is expensive partly because it is hard to make changes when assets have been deployed

Designs for corrosion protection can include surface protection cathodic pro-tection for underwater parts painting and advanced materials Structural parts use steel or aluminum which must get surface treat-ment to resist corrosion Thomas said ldquoAnd when the engineers use a mix of materials they must have a good process to mitigate galvanic corrosionrdquo

ldquoCorrosion is a concern across all assets especially today as there are fewer procure-ment programs on the horizon to replace legacyrdquo explained Matthew Koch program manager corrosion prevention and control (CPAC) at Marine Corps Systems Command

Like other services Marines are being asked to extend service lives well beyond their original equipment design One

example is the amphibious assault vehicle (AAV-7) After cancellation of the expedition-ary fighting vehicle (EFV) AAVs will continue to be used by Marines for many years to come

CPAC supports all ground equipment in Marine Corps Koch said his current focus is on armored vehicles and heavy combat systems but CPAC also supports tactical and ground equipment

Koch said corrosion challenges arise from three basic sources design environment and maintenance Many current systems origi-nated in the 1960s and 1970s when a 20-year service life was not considered And corrosion control must always compete with function-ality in all designs so trade-offs are inevitable

Moreover Marines operate in tough envi-ronmentsmdashin and around oceans in tropical climates and other environments that pro-mote corrosion ldquoIt is impossible to predict where a vehicle might be usedrdquo Koch empha-sized ldquoDesigning for every possible environ-ment is not practicalrdquo

Maintenance is the last chance to correct and prevent corrosion Modern equipment has better corrosion control and requires less frequent maintenance Legacy equipment requires bigger maintenance investment For-tunately reset after return from deployment allows smart investment in corrosion control and can even extend the life of equipment

The silenT eaTer of sTeel sTeals Time and money

By henry Canaday

mlf CorrespondenT

wwwMLF-kmicom4 | MLF 63

Supplemental maintenance with cor-rosion preventative compounds is used on Marine legacy equipment in annual and semi-annual maintenance During major rebuild or repainting programs material upgrades can further protect equipment but this cannot be done at operating units

For new equipment material selection and improved coatings enhance corrosion resistance Koch said use of non-metallic materials helps and isolating dissimilar metals assists in preventing galvanic cor-rosion Otherwise ldquothe loss of one metal is accelerated by contact with a different metalrdquo

Coating improvements include electro-deposited coatings (e-coat) for primers sac-rificial coatings and specialty coatings that provide mechanical and abrasion resistance in addition to corrosion protection

Designers of new equipment can also avoid creating areas that are difficult to paint that trap corrosion-inducing con-taminants or that cannot be cleaned maintained or repaired Designing out corrosion-prone areas improves corrosion

resistance at much less cost than future maintenance or redesign

Koch said better storage can also reduce corrosion of current equipment For example warehousing vehicles in pro-tective shelters with dehumidification will stop almost all corrosion

CPAC continually explores new anti-corrosion technologies But Koch said it is tough to find new technologies that fit with other equipment requirements Anti-corrosion technology must be com-patible with chemical agent resistant coat-ing (CARC) meet wear and grounding requirements be usable by the organic and commercial support base and fit cur-rent maintenance philosophies for ground vehicles

Private companies are working hard on the corrosion challenge especially for existing equipment

Daubert Chemical makes temporary rust preventatives to military specifica-tions for short- or long-term protection explained Frank Vella director of indus-trial coating sales

Short-term protection is afforded by light oil films with added rust preventa-tives that are easy to remove Mid-term protection is done with grease and waxes for good protection on uncovered equip-ment left outdoors Long-term protection comes from petroleum jelly and metal ions In all there are five grades of anti-corrosion protection

The Navy one of the hardest chal-lenges uses heavier protection for cables and ship exteriors and for ships in dry dock especially for inaccessible areas that may accumulate water

ldquoWe have been around since 1935 and doing military specs for 25 yearsrdquo Vella stressed About a quarter of Daubertrsquos business is military Vella is seeing more emphasis on environment-friendly rust prevention and Daubert is researching water-based coatings to replace solvent-based products to meet that need

Sherwin-Williams offers a full comple-ment of anti-corrosion products start-ing with pretreatment wash primers and extending up to primer layers according

Reusable minimal application time and covered in under an hour

Thatrsquos a promise

Protective flexible moisture barrier covers to fit a pistol or a missile launcher

Thatrsquos a guarantee

No Corrosion for Five + Years

wwwMLF-kmicom MLF 63 | 5

to Beth Ann Pearson military product line manager

Sherwin-Williams is a qualified sup-plier for epoxy primers identified in the MIL-DTL-53022E specification for fast-drying corrosion-inhibiting epoxy prim-ers for ferrous and non-ferrous substrates Components on mine resistant ambush protected vehicles (MRAPs) MRAP all-ter-rain vehicles and high mobility multipur-pose wheeled vehicles use these primers The company is the first approved supplier for Type IV enhanced corrosion primer with zero volatile organic content and is an approved supplier of water-based corrosion-inhibiting epoxy primers

Zinc-rich epoxies were added to MIL-DTL-53072 in 2011 and Sherwin-Williams offers one- and two-component solvent-based zinc-rich epoxy primers and several water-borne zinc epoxy primers The two-component system is used on MRAPs Finally Sherwin-Williams supplies MIL-PRF-32348 powder coatings for metallic substrates

Sherwin-Williams was the first com-pany approved under military specifica-tions for extended corrosion protection The company also offers multiple cure technologies for special application and cure challenges

Pearson said her entire industry is working on next-generation technologies to support Defensersquos Corrosion Prevention and Mitigation Strategic Plan ldquoThere are several developmental and research pro-grams underway focusing on wash primers and unique pre-treatment chemistriesrdquo she said Compact systems used in the auto industry are beginning to move into military coatings Powder coating in place of electro-coating is another trend And Sherwin-Williams is introducing epoxy aerosols which allow for a single con-tainer application for easy touch-up and repair and perhaps even small application jobs

PPG Industries makes coatings and engineered materials to mitigate corro-sion for all the services according to Heather Stephan military protective coat-ings manager These include pre-treat-ments primers topcoats and materials such as polyurea coatings ldquoWe have pow-der coatings a variety of liquid coatings and e-coatrdquo PPG provides PSX engineered Polysiloxane coatings nearly solvent-free and with unlimited re-coatability to the US Coast Guard and Navy

For decades PPG provided coatings for the auto industry and was the first company to provide e-coat to create an encapsulating barrier between steel and elements causing corrosion It now pro-vides zirconium pretreatments for e-coat to the auto industry and is working with the US military to qualify the same tech-nology where e-coats are used

PPGrsquos Durabed polyurea coating was the first bed liner used by auto makers As Mil-Tough it is used for military ground equipment ldquoThese products provide supe-rior abrasion resistance to protect ground vehicles and equipment in extremely harsh conditionsrdquo Stephan said They can be top-coated with CARC for further protection

Mil-Toughrsquos XP version provides extreme protection in abrasive environ-ments The BR version is optimized for blasts SM optimized for ballistics and FR for fire resistance

PPG has developed e-coat solutions for auto fasteners and is optimizing them for military requirements It is now con-centrating on wash primers and zinc-rich primers to enhance corrosion protection of its existing coatings

ldquoWhen people need long-term protec-tion and preservation we go in to deter-mine objectives find out what is being protected against what and for how long and how much access is neededrdquo explained Steve Hanna president of Protective Pack-aging ldquoThen we recommend a solutionrdquo Solutions can involve vapor corrosion inhibitors (VCI) bubble or shrink wraps and other technologies

Protective does 40 percent of its busi-ness for the military either directly or for shippers or defense contractors as with Boeingrsquos joint direct attack munition If necessary it can warranty that vapor will not exceed 15 percent for 20 years

Protective provides covers for MIM-104 Patriot launchers and does a lot of work for equipment left behind by deployed National Guard units for example the trucks and trailers of the Massachusetts National Guard It has just completed pro-tection for F-35 joint strike fighters sent on ships to foreign customers

Protectiversquos toughest challenge was protecting a radar unit in the South Pacific ldquoWe designed it here and spent two weeks trying to cover it but the wind never went below 40 miles per hourrdquo Hanna remem-bered ldquoThey told us to go home and they would put it on when the wind died down If

we had known this we would have designed a smaller cover so we could get it onrdquo

Protective can guard against corrosion ultraviolet (UV) rays dust mildew mold ldquoyou name itrdquo Hanna said ldquoA long time ago they would just put cosmoline on it but in 40 years you have to chip that off with chiselrdquo He emphasized there is no one-size-fits all anti-corrosion solution but each must be tailored to specific needs

Transhield makes tarps that fit over military equipment and are waterproof breathable have VCIs that bind with fer-rous metal and can reduce corrosion 85 to 95 percent said Jeff Holt director of government sales The equipment also pro-tects against temperature spikes from UV rays that damage electric cables and rubber seals condense water and thus cause cor-rosion inside vehicles

The company is the preferred provider for Marines having delivered 20000 cov-ers and the Army and Navy are interested Its covers protect generators AAVs light armored vehicles the M1 Abrams and M109 Paladin Current Transhield covers last for two to four years although VCIs last longer

Transhield is working on a new prod-uct Armadillo that will last three to five years be more breathable and add protec-tion against biological damage from mold fungus and mildew

Milspray Military Technologies offers a mobile corrosion repair facility on wheels and technicians for deployment to bases of heavy assets equipment and weapons explained Marketing Manager and Chemi-cal Engineer Chantel Robinson ldquoWe do corrosion repair prevention and mainte-nance on siterdquo

Milspray has deployed at 48 sites in four years including six in Japan but none in Iraq or Afghanistan The mobile facilities can also do CARC painting drop and reap-ply armor coat undercarriages and vehicle bed-liners and do minor maintenance on common parts

Milspray is now adding some new touch-up paint products The company works for the Marine Corps O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwMLF-kmicom6 | MLF 63

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

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bull HOME OF DEERE amp COMPANY WORLD HEADQUARTERS QuadCitiesFirstcom

Donrsquot miss this opportunity

to grow your business

with the Rock Island Arsenal

bull Identify new business opportunity

bull EAGLE update

bull Prime contractorsmall business matchmaking session

bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

bull Presentations by Senior DoD Offi cials

Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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dex

is pr

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rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 3: MLF 6-3 (April 2012)

Military logistics ForuM april 2012 VoluMe 6 bull issue 3

Features coVer Qampa

16

DepartMents

Donald J WetekamSenior Vice President Government amp

defense Business developmentaaR corp

28

Rear Admiral Mark F Heinrichcommander naval Supply Systems

command and chief of Supply corps

2

14

27

Editorrsquos Perspective

Supply Chain

Calendar Directory

inDustry interView23

Moving Logistics Forward logistics is almost always a challenge perhaps never more so than to landlocked afghanistan connecting every mode of transport has resulted in an effective supply chainBy JB Bissell

25

Ranking the Supply Chain Industrymarket research looks at metrics to develop a comparable ranking of the industrial supply chain elements for the aerospace and defense market Gartner discusses its 7th annual Supply chain top 25By Ray Barger Jr and Jane Feitler

21

Demand Planninglong gone are the days of Ouija board logistics todayrsquos supply chains are managed to every detail Being able to predict with sufficient accuracy the demand for supplies parts is becoming more criticalBy Bill murray

12

Greening the DoDdod is the single largest energy consumer in the US accounting for about 90 percent of federal use its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases)By Heather Baldwin

exclusive interview withRear Admiral (Select) Cindy L ldquoCJrdquo Jaynes assistant commander logistics and industrial Operations

Top Critical Contracts

US naVy naVal aiR SyStemS cOmmandlOGiSticS and indUStRial OPeRatiOnSSPecial PUll-OUt SUPPlement

6

4

Cutting the Rust dealing with corrosion of military equipment requires huge expenditures of money and manpower the logistics management institute estimates that dod spends $225 billion annually on corrosion maintenance and repair By Henry canaday

7

Rock Island ArsenalMilitary Logistics Forum recently had the chance to interview colonel James Fly Jr the commander of the Rock island arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the army of the future

1

The United States is the only truly globally-capable military force that can project and maintain a force outside of its borders for any length of time without the good graces of others The simple fact as to why that is possible comes down to logistics and the fact that we have the people and the resources to make that happen

Even though logisticians have been doing logistics for a long timemdashall of historymdashthere is always something to learn and some-thing to be taught It is clear that global logistics needs big thinkers that look beyond how best to pack a ship with stuff and push it away from the dock We need to enhance the lines of professional logistics education and training to develop the kind of big thinking that allows a military to sustain a force of plus or minus 90000 in Afghanistan while the majority of the major overland lines of communications have been turned off The answer is not always about throwing more money at an issue but itrsquos about doing a whole lot of right things at the right time Education training schooling and OJT can be blended into the perfect logistician

In a different direction we had the pleasure of interviewing Alan Estevez assistant secretary of defense for logistics and materiel readiness for the March issue of Military Logistics Forum After going to print we realized that we had not made some of the edits that we had planned on makingmdashit is always a challenge going from the spoken word to the written word We wanted to capture the full flavor of his comments and as such we made those edits in the online version which is posted on our website I encourage everyone to revisit his interview online especially in light of his comments and the panel discussions from the NDIA Logistics Conference

If you want to smile search for the video called ldquobroken escalatorrdquo It was played during two separate sessions at the logistics conference and Irsquom not quite sure what the message was except wemdashthe collective wemdashdo not want to become what they are

Publication of Record for the Military Logistics Community

eDitorialEditor-In-ChiefJeff McKaughan jeffmkmimediagroupcomManaging EditorHarrison Donnelly harrisondkmimediagroupcomOnline Editorial ManagerLaura Davis lauradkmimediagroupcomCopy EditorLaural Hobbes lauralhkmimediagroupcomCorrespondentsHeather Baldwin bull Peter Buxbaum bull Henry Canaday bull Cheryl Gerber bull Leslie Shaver

art amp Design

Art DirectorJennifer Owers jenniferokmimediagroupcom Senior DesignerJittima Saiwongnuan jittimaskmimediagroupcomGraphic Designers Amanda Kirsch amandakkmimediagroupcom Scott Morris scottmkmimediagroupcom Kailey Waring kaileywkmimediagroupcom

aDVertising

Associate PublisherJane Engel janekmimediagroupcom

KMi MeDia group

PublisherKirk Brown kirkbkmimediagroupcom Chief Executive OfficerJack Kerrigan jackkmimediagroupcomChief Financial OfficerConstance Kerrigan connikkmimediagroupcomExecutive Vice PresidentDavid Leaf davidlkmimediagroupcom Editor-In-ChiefJeff McKaughan jeffmkmimediagroupcomControllerGigi Castro gcastrokmimediagroupcomAdministrative AssistantCasandra Jones casandrajkmimediagroupcomTrade Show CoordinatorHolly Foster hollyfkmimediagroupcom

operations circulation amp proDuction

Circulation amp Marketing Administrator Duane Ebanks duaneekmimediagroupcomData Specialists Rebecca Hunter rebeccahkmimediagroupcom Tuesday Johnson tuesdayjkmimediagroupcom Raymer Villanueva raymervkmimediagroupcom Summer Walker summerwkmimediagroupcom Donisha Winston donishawkmimediagroupcom

a prouD MeMber oF

subscription inForMationMilitary Logistics Forum

ISSN 1937-9315 is published 10 times a year by KMI Media Group

All Rights Reserved Reproduction without permission is strictly forbidden copy Copyright 2012

Military Logistics Forum is free to qualified members of the US military employees of the US government

and non-US foreign service based in the US All others $65 per year Foreign $149 per year

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15800 Crabbs Branch Way Suite 300 Rockville MD 20855-2604 USA

Telephone (301) 670-5700 Fax (301) 670-5701

Web wwwMLF-kmicom

Military logistics ForuM

VoluMe 6 issue 3 april 2012

Jeffrey D McKaughanEditor-iN-CHiEF

EDITORrsquoS PERSPECTIVE

KMi MeDia group Magazines anD websites

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Geospatial Intelligence

Forum

wwwMAE-kmicom

Military AdvancedEducation

wwwMIT-kmicom

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wwwMMT-kmicom

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Technology

wwwGCT-kmicom wwwMT2-kmicom wwwSOTECH-kmicom wwwTISR-kmicom wwwUSCGF-kmicom

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US Coast Guard Forum

maersklinelimitedcom Every Voyage has a Purpose

We have supported our armed forces for almost three decades by deploying our ships and utilizing our assets ashore Our commitment to US troops extends beyond our daily operations to partnerships with charitable organizations that support service members and their families We are proud of the role we play in their success

Dealing with corrosion of military equip-ment requires huge expenditures of money and manpower Corrosion can also hamper performance of fielded assets or require tak-ing them out of action for major clean-up efforts The Defense Department is now mak-ing strenuous efforts to reduce the cost of rust in the future

ldquoThere is lots of aging infrastructure and equipment and the military must do more with less so corrosion has gotten a higher priority in the last few yearsrdquo summarized Bill Haynes division manager for corrosion technology at SAIC

SAIC consultant Dail Thomas cited a Logistics Management Institute estimate that the Defense Department spends $225 bil-lion annually on corrosion maintenance and repair

Navy and Marine Corps aviation incurs $3 billion in annual corrosion costs while the Coast Guard incurs $03 billion The Air Force spends $54 billion and the Army $24 billion just on ground vehicles Navy ships add $32 billion to the annual corrosion bill and Marine ground vehicles $05 billion Cor-rosion on Army aviation and missiles cost $14 billion Finally defense facilities infrastruc-ture and other equipment cost $7 billion

Congress enacted legislation in December 2002 giving the Office of the Under Secretary

of Defense for Acquisition Technology and Logistics overall responsibility for preventing and mitigating effects of corrosion on mili-tary equipment and infrastructure Program managers for new Category I acquisitions must assemble teams of corrosion specialists during the acquisition process

Corrosion prevention pays extremely high returns if done early in design Thomas said one alternative a service life extension program is expensive partly because it is hard to make changes when assets have been deployed

Designs for corrosion protection can include surface protection cathodic pro-tection for underwater parts painting and advanced materials Structural parts use steel or aluminum which must get surface treat-ment to resist corrosion Thomas said ldquoAnd when the engineers use a mix of materials they must have a good process to mitigate galvanic corrosionrdquo

ldquoCorrosion is a concern across all assets especially today as there are fewer procure-ment programs on the horizon to replace legacyrdquo explained Matthew Koch program manager corrosion prevention and control (CPAC) at Marine Corps Systems Command

Like other services Marines are being asked to extend service lives well beyond their original equipment design One

example is the amphibious assault vehicle (AAV-7) After cancellation of the expedition-ary fighting vehicle (EFV) AAVs will continue to be used by Marines for many years to come

CPAC supports all ground equipment in Marine Corps Koch said his current focus is on armored vehicles and heavy combat systems but CPAC also supports tactical and ground equipment

Koch said corrosion challenges arise from three basic sources design environment and maintenance Many current systems origi-nated in the 1960s and 1970s when a 20-year service life was not considered And corrosion control must always compete with function-ality in all designs so trade-offs are inevitable

Moreover Marines operate in tough envi-ronmentsmdashin and around oceans in tropical climates and other environments that pro-mote corrosion ldquoIt is impossible to predict where a vehicle might be usedrdquo Koch empha-sized ldquoDesigning for every possible environ-ment is not practicalrdquo

Maintenance is the last chance to correct and prevent corrosion Modern equipment has better corrosion control and requires less frequent maintenance Legacy equipment requires bigger maintenance investment For-tunately reset after return from deployment allows smart investment in corrosion control and can even extend the life of equipment

The silenT eaTer of sTeel sTeals Time and money

By henry Canaday

mlf CorrespondenT

wwwMLF-kmicom4 | MLF 63

Supplemental maintenance with cor-rosion preventative compounds is used on Marine legacy equipment in annual and semi-annual maintenance During major rebuild or repainting programs material upgrades can further protect equipment but this cannot be done at operating units

For new equipment material selection and improved coatings enhance corrosion resistance Koch said use of non-metallic materials helps and isolating dissimilar metals assists in preventing galvanic cor-rosion Otherwise ldquothe loss of one metal is accelerated by contact with a different metalrdquo

Coating improvements include electro-deposited coatings (e-coat) for primers sac-rificial coatings and specialty coatings that provide mechanical and abrasion resistance in addition to corrosion protection

Designers of new equipment can also avoid creating areas that are difficult to paint that trap corrosion-inducing con-taminants or that cannot be cleaned maintained or repaired Designing out corrosion-prone areas improves corrosion

resistance at much less cost than future maintenance or redesign

Koch said better storage can also reduce corrosion of current equipment For example warehousing vehicles in pro-tective shelters with dehumidification will stop almost all corrosion

CPAC continually explores new anti-corrosion technologies But Koch said it is tough to find new technologies that fit with other equipment requirements Anti-corrosion technology must be com-patible with chemical agent resistant coat-ing (CARC) meet wear and grounding requirements be usable by the organic and commercial support base and fit cur-rent maintenance philosophies for ground vehicles

Private companies are working hard on the corrosion challenge especially for existing equipment

Daubert Chemical makes temporary rust preventatives to military specifica-tions for short- or long-term protection explained Frank Vella director of indus-trial coating sales

Short-term protection is afforded by light oil films with added rust preventa-tives that are easy to remove Mid-term protection is done with grease and waxes for good protection on uncovered equip-ment left outdoors Long-term protection comes from petroleum jelly and metal ions In all there are five grades of anti-corrosion protection

The Navy one of the hardest chal-lenges uses heavier protection for cables and ship exteriors and for ships in dry dock especially for inaccessible areas that may accumulate water

ldquoWe have been around since 1935 and doing military specs for 25 yearsrdquo Vella stressed About a quarter of Daubertrsquos business is military Vella is seeing more emphasis on environment-friendly rust prevention and Daubert is researching water-based coatings to replace solvent-based products to meet that need

Sherwin-Williams offers a full comple-ment of anti-corrosion products start-ing with pretreatment wash primers and extending up to primer layers according

Reusable minimal application time and covered in under an hour

Thatrsquos a promise

Protective flexible moisture barrier covers to fit a pistol or a missile launcher

Thatrsquos a guarantee

No Corrosion for Five + Years

wwwMLF-kmicom MLF 63 | 5

to Beth Ann Pearson military product line manager

Sherwin-Williams is a qualified sup-plier for epoxy primers identified in the MIL-DTL-53022E specification for fast-drying corrosion-inhibiting epoxy prim-ers for ferrous and non-ferrous substrates Components on mine resistant ambush protected vehicles (MRAPs) MRAP all-ter-rain vehicles and high mobility multipur-pose wheeled vehicles use these primers The company is the first approved supplier for Type IV enhanced corrosion primer with zero volatile organic content and is an approved supplier of water-based corrosion-inhibiting epoxy primers

Zinc-rich epoxies were added to MIL-DTL-53072 in 2011 and Sherwin-Williams offers one- and two-component solvent-based zinc-rich epoxy primers and several water-borne zinc epoxy primers The two-component system is used on MRAPs Finally Sherwin-Williams supplies MIL-PRF-32348 powder coatings for metallic substrates

Sherwin-Williams was the first com-pany approved under military specifica-tions for extended corrosion protection The company also offers multiple cure technologies for special application and cure challenges

Pearson said her entire industry is working on next-generation technologies to support Defensersquos Corrosion Prevention and Mitigation Strategic Plan ldquoThere are several developmental and research pro-grams underway focusing on wash primers and unique pre-treatment chemistriesrdquo she said Compact systems used in the auto industry are beginning to move into military coatings Powder coating in place of electro-coating is another trend And Sherwin-Williams is introducing epoxy aerosols which allow for a single con-tainer application for easy touch-up and repair and perhaps even small application jobs

PPG Industries makes coatings and engineered materials to mitigate corro-sion for all the services according to Heather Stephan military protective coat-ings manager These include pre-treat-ments primers topcoats and materials such as polyurea coatings ldquoWe have pow-der coatings a variety of liquid coatings and e-coatrdquo PPG provides PSX engineered Polysiloxane coatings nearly solvent-free and with unlimited re-coatability to the US Coast Guard and Navy

For decades PPG provided coatings for the auto industry and was the first company to provide e-coat to create an encapsulating barrier between steel and elements causing corrosion It now pro-vides zirconium pretreatments for e-coat to the auto industry and is working with the US military to qualify the same tech-nology where e-coats are used

PPGrsquos Durabed polyurea coating was the first bed liner used by auto makers As Mil-Tough it is used for military ground equipment ldquoThese products provide supe-rior abrasion resistance to protect ground vehicles and equipment in extremely harsh conditionsrdquo Stephan said They can be top-coated with CARC for further protection

Mil-Toughrsquos XP version provides extreme protection in abrasive environ-ments The BR version is optimized for blasts SM optimized for ballistics and FR for fire resistance

PPG has developed e-coat solutions for auto fasteners and is optimizing them for military requirements It is now con-centrating on wash primers and zinc-rich primers to enhance corrosion protection of its existing coatings

ldquoWhen people need long-term protec-tion and preservation we go in to deter-mine objectives find out what is being protected against what and for how long and how much access is neededrdquo explained Steve Hanna president of Protective Pack-aging ldquoThen we recommend a solutionrdquo Solutions can involve vapor corrosion inhibitors (VCI) bubble or shrink wraps and other technologies

Protective does 40 percent of its busi-ness for the military either directly or for shippers or defense contractors as with Boeingrsquos joint direct attack munition If necessary it can warranty that vapor will not exceed 15 percent for 20 years

Protective provides covers for MIM-104 Patriot launchers and does a lot of work for equipment left behind by deployed National Guard units for example the trucks and trailers of the Massachusetts National Guard It has just completed pro-tection for F-35 joint strike fighters sent on ships to foreign customers

Protectiversquos toughest challenge was protecting a radar unit in the South Pacific ldquoWe designed it here and spent two weeks trying to cover it but the wind never went below 40 miles per hourrdquo Hanna remem-bered ldquoThey told us to go home and they would put it on when the wind died down If

we had known this we would have designed a smaller cover so we could get it onrdquo

Protective can guard against corrosion ultraviolet (UV) rays dust mildew mold ldquoyou name itrdquo Hanna said ldquoA long time ago they would just put cosmoline on it but in 40 years you have to chip that off with chiselrdquo He emphasized there is no one-size-fits all anti-corrosion solution but each must be tailored to specific needs

Transhield makes tarps that fit over military equipment and are waterproof breathable have VCIs that bind with fer-rous metal and can reduce corrosion 85 to 95 percent said Jeff Holt director of government sales The equipment also pro-tects against temperature spikes from UV rays that damage electric cables and rubber seals condense water and thus cause cor-rosion inside vehicles

The company is the preferred provider for Marines having delivered 20000 cov-ers and the Army and Navy are interested Its covers protect generators AAVs light armored vehicles the M1 Abrams and M109 Paladin Current Transhield covers last for two to four years although VCIs last longer

Transhield is working on a new prod-uct Armadillo that will last three to five years be more breathable and add protec-tion against biological damage from mold fungus and mildew

Milspray Military Technologies offers a mobile corrosion repair facility on wheels and technicians for deployment to bases of heavy assets equipment and weapons explained Marketing Manager and Chemi-cal Engineer Chantel Robinson ldquoWe do corrosion repair prevention and mainte-nance on siterdquo

Milspray has deployed at 48 sites in four years including six in Japan but none in Iraq or Afghanistan The mobile facilities can also do CARC painting drop and reap-ply armor coat undercarriages and vehicle bed-liners and do minor maintenance on common parts

Milspray is now adding some new touch-up paint products The company works for the Marine Corps O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwMLF-kmicom6 | MLF 63

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

QUAD CITIESi wireless Center 1201 River Drive Moline IL

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UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

bull FLEXIBLE BUSINESS ASSISTANCE PROGRAMS

bull FIRST POINT OF CONTACT FOR ILLINOIS AND IOWA

bull HOME OF DEERE amp COMPANY WORLD HEADQUARTERS QuadCitiesFirstcom

Donrsquot miss this opportunity

to grow your business

with the Rock Island Arsenal

bull Identify new business opportunity

bull EAGLE update

bull Prime contractorsmall business matchmaking session

bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

bull Presentations by Senior DoD Offi cials

Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

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Compatible WithSmart Grid Technology

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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dex

is pr

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 4: MLF 6-3 (April 2012)

The United States is the only truly globally-capable military force that can project and maintain a force outside of its borders for any length of time without the good graces of others The simple fact as to why that is possible comes down to logistics and the fact that we have the people and the resources to make that happen

Even though logisticians have been doing logistics for a long timemdashall of historymdashthere is always something to learn and some-thing to be taught It is clear that global logistics needs big thinkers that look beyond how best to pack a ship with stuff and push it away from the dock We need to enhance the lines of professional logistics education and training to develop the kind of big thinking that allows a military to sustain a force of plus or minus 90000 in Afghanistan while the majority of the major overland lines of communications have been turned off The answer is not always about throwing more money at an issue but itrsquos about doing a whole lot of right things at the right time Education training schooling and OJT can be blended into the perfect logistician

In a different direction we had the pleasure of interviewing Alan Estevez assistant secretary of defense for logistics and materiel readiness for the March issue of Military Logistics Forum After going to print we realized that we had not made some of the edits that we had planned on makingmdashit is always a challenge going from the spoken word to the written word We wanted to capture the full flavor of his comments and as such we made those edits in the online version which is posted on our website I encourage everyone to revisit his interview online especially in light of his comments and the panel discussions from the NDIA Logistics Conference

If you want to smile search for the video called ldquobroken escalatorrdquo It was played during two separate sessions at the logistics conference and Irsquom not quite sure what the message was except wemdashthe collective wemdashdo not want to become what they are

Publication of Record for the Military Logistics Community

eDitorialEditor-In-ChiefJeff McKaughan jeffmkmimediagroupcomManaging EditorHarrison Donnelly harrisondkmimediagroupcomOnline Editorial ManagerLaura Davis lauradkmimediagroupcomCopy EditorLaural Hobbes lauralhkmimediagroupcomCorrespondentsHeather Baldwin bull Peter Buxbaum bull Henry Canaday bull Cheryl Gerber bull Leslie Shaver

art amp Design

Art DirectorJennifer Owers jenniferokmimediagroupcom Senior DesignerJittima Saiwongnuan jittimaskmimediagroupcomGraphic Designers Amanda Kirsch amandakkmimediagroupcom Scott Morris scottmkmimediagroupcom Kailey Waring kaileywkmimediagroupcom

aDVertising

Associate PublisherJane Engel janekmimediagroupcom

KMi MeDia group

PublisherKirk Brown kirkbkmimediagroupcom Chief Executive OfficerJack Kerrigan jackkmimediagroupcomChief Financial OfficerConstance Kerrigan connikkmimediagroupcomExecutive Vice PresidentDavid Leaf davidlkmimediagroupcom Editor-In-ChiefJeff McKaughan jeffmkmimediagroupcomControllerGigi Castro gcastrokmimediagroupcomAdministrative AssistantCasandra Jones casandrajkmimediagroupcomTrade Show CoordinatorHolly Foster hollyfkmimediagroupcom

operations circulation amp proDuction

Circulation amp Marketing Administrator Duane Ebanks duaneekmimediagroupcomData Specialists Rebecca Hunter rebeccahkmimediagroupcom Tuesday Johnson tuesdayjkmimediagroupcom Raymer Villanueva raymervkmimediagroupcom Summer Walker summerwkmimediagroupcom Donisha Winston donishawkmimediagroupcom

a prouD MeMber oF

subscription inForMationMilitary Logistics Forum

ISSN 1937-9315 is published 10 times a year by KMI Media Group

All Rights Reserved Reproduction without permission is strictly forbidden copy Copyright 2012

Military Logistics Forum is free to qualified members of the US military employees of the US government

and non-US foreign service based in the US All others $65 per year Foreign $149 per year

Corporate OfficesKMI Media Group

15800 Crabbs Branch Way Suite 300 Rockville MD 20855-2604 USA

Telephone (301) 670-5700 Fax (301) 670-5701

Web wwwMLF-kmicom

Military logistics ForuM

VoluMe 6 issue 3 april 2012

Jeffrey D McKaughanEditor-iN-CHiEF

EDITORrsquoS PERSPECTIVE

KMi MeDia group Magazines anD websites

wwwGIF-kmicom

Geospatial Intelligence

Forum

wwwMAE-kmicom

Military AdvancedEducation

wwwMIT-kmicom

Military Information Technology

wwwMLF-kmicom

Military Logistics

Forum

wwwMMT-kmicom

Military MedicalCBRN

Technology

wwwGCT-kmicom wwwMT2-kmicom wwwSOTECH-kmicom wwwTISR-kmicom wwwUSCGF-kmicom

Ground Combat

Technology

Military Training

Technology

Special Operations Technology

Tactical ISR Technology

US Coast Guard Forum

maersklinelimitedcom Every Voyage has a Purpose

We have supported our armed forces for almost three decades by deploying our ships and utilizing our assets ashore Our commitment to US troops extends beyond our daily operations to partnerships with charitable organizations that support service members and their families We are proud of the role we play in their success

Dealing with corrosion of military equip-ment requires huge expenditures of money and manpower Corrosion can also hamper performance of fielded assets or require tak-ing them out of action for major clean-up efforts The Defense Department is now mak-ing strenuous efforts to reduce the cost of rust in the future

ldquoThere is lots of aging infrastructure and equipment and the military must do more with less so corrosion has gotten a higher priority in the last few yearsrdquo summarized Bill Haynes division manager for corrosion technology at SAIC

SAIC consultant Dail Thomas cited a Logistics Management Institute estimate that the Defense Department spends $225 bil-lion annually on corrosion maintenance and repair

Navy and Marine Corps aviation incurs $3 billion in annual corrosion costs while the Coast Guard incurs $03 billion The Air Force spends $54 billion and the Army $24 billion just on ground vehicles Navy ships add $32 billion to the annual corrosion bill and Marine ground vehicles $05 billion Cor-rosion on Army aviation and missiles cost $14 billion Finally defense facilities infrastruc-ture and other equipment cost $7 billion

Congress enacted legislation in December 2002 giving the Office of the Under Secretary

of Defense for Acquisition Technology and Logistics overall responsibility for preventing and mitigating effects of corrosion on mili-tary equipment and infrastructure Program managers for new Category I acquisitions must assemble teams of corrosion specialists during the acquisition process

Corrosion prevention pays extremely high returns if done early in design Thomas said one alternative a service life extension program is expensive partly because it is hard to make changes when assets have been deployed

Designs for corrosion protection can include surface protection cathodic pro-tection for underwater parts painting and advanced materials Structural parts use steel or aluminum which must get surface treat-ment to resist corrosion Thomas said ldquoAnd when the engineers use a mix of materials they must have a good process to mitigate galvanic corrosionrdquo

ldquoCorrosion is a concern across all assets especially today as there are fewer procure-ment programs on the horizon to replace legacyrdquo explained Matthew Koch program manager corrosion prevention and control (CPAC) at Marine Corps Systems Command

Like other services Marines are being asked to extend service lives well beyond their original equipment design One

example is the amphibious assault vehicle (AAV-7) After cancellation of the expedition-ary fighting vehicle (EFV) AAVs will continue to be used by Marines for many years to come

CPAC supports all ground equipment in Marine Corps Koch said his current focus is on armored vehicles and heavy combat systems but CPAC also supports tactical and ground equipment

Koch said corrosion challenges arise from three basic sources design environment and maintenance Many current systems origi-nated in the 1960s and 1970s when a 20-year service life was not considered And corrosion control must always compete with function-ality in all designs so trade-offs are inevitable

Moreover Marines operate in tough envi-ronmentsmdashin and around oceans in tropical climates and other environments that pro-mote corrosion ldquoIt is impossible to predict where a vehicle might be usedrdquo Koch empha-sized ldquoDesigning for every possible environ-ment is not practicalrdquo

Maintenance is the last chance to correct and prevent corrosion Modern equipment has better corrosion control and requires less frequent maintenance Legacy equipment requires bigger maintenance investment For-tunately reset after return from deployment allows smart investment in corrosion control and can even extend the life of equipment

The silenT eaTer of sTeel sTeals Time and money

By henry Canaday

mlf CorrespondenT

wwwMLF-kmicom4 | MLF 63

Supplemental maintenance with cor-rosion preventative compounds is used on Marine legacy equipment in annual and semi-annual maintenance During major rebuild or repainting programs material upgrades can further protect equipment but this cannot be done at operating units

For new equipment material selection and improved coatings enhance corrosion resistance Koch said use of non-metallic materials helps and isolating dissimilar metals assists in preventing galvanic cor-rosion Otherwise ldquothe loss of one metal is accelerated by contact with a different metalrdquo

Coating improvements include electro-deposited coatings (e-coat) for primers sac-rificial coatings and specialty coatings that provide mechanical and abrasion resistance in addition to corrosion protection

Designers of new equipment can also avoid creating areas that are difficult to paint that trap corrosion-inducing con-taminants or that cannot be cleaned maintained or repaired Designing out corrosion-prone areas improves corrosion

resistance at much less cost than future maintenance or redesign

Koch said better storage can also reduce corrosion of current equipment For example warehousing vehicles in pro-tective shelters with dehumidification will stop almost all corrosion

CPAC continually explores new anti-corrosion technologies But Koch said it is tough to find new technologies that fit with other equipment requirements Anti-corrosion technology must be com-patible with chemical agent resistant coat-ing (CARC) meet wear and grounding requirements be usable by the organic and commercial support base and fit cur-rent maintenance philosophies for ground vehicles

Private companies are working hard on the corrosion challenge especially for existing equipment

Daubert Chemical makes temporary rust preventatives to military specifica-tions for short- or long-term protection explained Frank Vella director of indus-trial coating sales

Short-term protection is afforded by light oil films with added rust preventa-tives that are easy to remove Mid-term protection is done with grease and waxes for good protection on uncovered equip-ment left outdoors Long-term protection comes from petroleum jelly and metal ions In all there are five grades of anti-corrosion protection

The Navy one of the hardest chal-lenges uses heavier protection for cables and ship exteriors and for ships in dry dock especially for inaccessible areas that may accumulate water

ldquoWe have been around since 1935 and doing military specs for 25 yearsrdquo Vella stressed About a quarter of Daubertrsquos business is military Vella is seeing more emphasis on environment-friendly rust prevention and Daubert is researching water-based coatings to replace solvent-based products to meet that need

Sherwin-Williams offers a full comple-ment of anti-corrosion products start-ing with pretreatment wash primers and extending up to primer layers according

Reusable minimal application time and covered in under an hour

Thatrsquos a promise

Protective flexible moisture barrier covers to fit a pistol or a missile launcher

Thatrsquos a guarantee

No Corrosion for Five + Years

wwwMLF-kmicom MLF 63 | 5

to Beth Ann Pearson military product line manager

Sherwin-Williams is a qualified sup-plier for epoxy primers identified in the MIL-DTL-53022E specification for fast-drying corrosion-inhibiting epoxy prim-ers for ferrous and non-ferrous substrates Components on mine resistant ambush protected vehicles (MRAPs) MRAP all-ter-rain vehicles and high mobility multipur-pose wheeled vehicles use these primers The company is the first approved supplier for Type IV enhanced corrosion primer with zero volatile organic content and is an approved supplier of water-based corrosion-inhibiting epoxy primers

Zinc-rich epoxies were added to MIL-DTL-53072 in 2011 and Sherwin-Williams offers one- and two-component solvent-based zinc-rich epoxy primers and several water-borne zinc epoxy primers The two-component system is used on MRAPs Finally Sherwin-Williams supplies MIL-PRF-32348 powder coatings for metallic substrates

Sherwin-Williams was the first com-pany approved under military specifica-tions for extended corrosion protection The company also offers multiple cure technologies for special application and cure challenges

Pearson said her entire industry is working on next-generation technologies to support Defensersquos Corrosion Prevention and Mitigation Strategic Plan ldquoThere are several developmental and research pro-grams underway focusing on wash primers and unique pre-treatment chemistriesrdquo she said Compact systems used in the auto industry are beginning to move into military coatings Powder coating in place of electro-coating is another trend And Sherwin-Williams is introducing epoxy aerosols which allow for a single con-tainer application for easy touch-up and repair and perhaps even small application jobs

PPG Industries makes coatings and engineered materials to mitigate corro-sion for all the services according to Heather Stephan military protective coat-ings manager These include pre-treat-ments primers topcoats and materials such as polyurea coatings ldquoWe have pow-der coatings a variety of liquid coatings and e-coatrdquo PPG provides PSX engineered Polysiloxane coatings nearly solvent-free and with unlimited re-coatability to the US Coast Guard and Navy

For decades PPG provided coatings for the auto industry and was the first company to provide e-coat to create an encapsulating barrier between steel and elements causing corrosion It now pro-vides zirconium pretreatments for e-coat to the auto industry and is working with the US military to qualify the same tech-nology where e-coats are used

PPGrsquos Durabed polyurea coating was the first bed liner used by auto makers As Mil-Tough it is used for military ground equipment ldquoThese products provide supe-rior abrasion resistance to protect ground vehicles and equipment in extremely harsh conditionsrdquo Stephan said They can be top-coated with CARC for further protection

Mil-Toughrsquos XP version provides extreme protection in abrasive environ-ments The BR version is optimized for blasts SM optimized for ballistics and FR for fire resistance

PPG has developed e-coat solutions for auto fasteners and is optimizing them for military requirements It is now con-centrating on wash primers and zinc-rich primers to enhance corrosion protection of its existing coatings

ldquoWhen people need long-term protec-tion and preservation we go in to deter-mine objectives find out what is being protected against what and for how long and how much access is neededrdquo explained Steve Hanna president of Protective Pack-aging ldquoThen we recommend a solutionrdquo Solutions can involve vapor corrosion inhibitors (VCI) bubble or shrink wraps and other technologies

Protective does 40 percent of its busi-ness for the military either directly or for shippers or defense contractors as with Boeingrsquos joint direct attack munition If necessary it can warranty that vapor will not exceed 15 percent for 20 years

Protective provides covers for MIM-104 Patriot launchers and does a lot of work for equipment left behind by deployed National Guard units for example the trucks and trailers of the Massachusetts National Guard It has just completed pro-tection for F-35 joint strike fighters sent on ships to foreign customers

Protectiversquos toughest challenge was protecting a radar unit in the South Pacific ldquoWe designed it here and spent two weeks trying to cover it but the wind never went below 40 miles per hourrdquo Hanna remem-bered ldquoThey told us to go home and they would put it on when the wind died down If

we had known this we would have designed a smaller cover so we could get it onrdquo

Protective can guard against corrosion ultraviolet (UV) rays dust mildew mold ldquoyou name itrdquo Hanna said ldquoA long time ago they would just put cosmoline on it but in 40 years you have to chip that off with chiselrdquo He emphasized there is no one-size-fits all anti-corrosion solution but each must be tailored to specific needs

Transhield makes tarps that fit over military equipment and are waterproof breathable have VCIs that bind with fer-rous metal and can reduce corrosion 85 to 95 percent said Jeff Holt director of government sales The equipment also pro-tects against temperature spikes from UV rays that damage electric cables and rubber seals condense water and thus cause cor-rosion inside vehicles

The company is the preferred provider for Marines having delivered 20000 cov-ers and the Army and Navy are interested Its covers protect generators AAVs light armored vehicles the M1 Abrams and M109 Paladin Current Transhield covers last for two to four years although VCIs last longer

Transhield is working on a new prod-uct Armadillo that will last three to five years be more breathable and add protec-tion against biological damage from mold fungus and mildew

Milspray Military Technologies offers a mobile corrosion repair facility on wheels and technicians for deployment to bases of heavy assets equipment and weapons explained Marketing Manager and Chemi-cal Engineer Chantel Robinson ldquoWe do corrosion repair prevention and mainte-nance on siterdquo

Milspray has deployed at 48 sites in four years including six in Japan but none in Iraq or Afghanistan The mobile facilities can also do CARC painting drop and reap-ply armor coat undercarriages and vehicle bed-liners and do minor maintenance on common parts

Milspray is now adding some new touch-up paint products The company works for the Marine Corps O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwMLF-kmicom6 | MLF 63

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

QUAD CITIESi wireless Center 1201 River Drive Moline IL

2012 Midwest Small Business Government Contracting Symposium

May 22-24 20I2

IOWA

ILLINOISOISOISO

500miles

(8046 km)

300miles

(4828 km)

Minneapolis

Kansas City

Omaha

Chicago

St Louis

Indianapolis

Mississip

pi River

DetroitMilwaukeeMadison

Des Moines

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Louisville

Columbus

QUAD CITIESQUAD CITIES

2012 Midwest Small Business

For more information and to register for the Symposium visit wwwndia-ia-ilorg

bull BI-STATE REGION INCLUDING CITIES OF MOLINE EAST MOLINE ROCK ISLAND DAVENPORT AND BETTENDORF

bull HOME OF ROCK ISLAND ARSENAL A MAJOR MILITARY INSTALLATION

bull EFFICIENT MULTIMODAL TRANSPORTATION OPTIONS

bull POWER RATES SIGNIFICANTLY LOWER THAN NATIONAL AVERAGE

bull LARGEST 300-MILE MARKET WEST OF CHICAGO

bull 428000-STRONG LABOR FORCE (AND GROWING)

About the Quad Citiesbull 40 COLLEGES AND

UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

bull FLEXIBLE BUSINESS ASSISTANCE PROGRAMS

bull FIRST POINT OF CONTACT FOR ILLINOIS AND IOWA

bull HOME OF DEERE amp COMPANY WORLD HEADQUARTERS QuadCitiesFirstcom

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bull Identify new business opportunity

bull EAGLE update

bull Prime contractorsmall business matchmaking session

bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

bull Presentations by Senior DoD Offi cials

Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

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Compatible WithSmart Grid Technology

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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dex

is pr

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 5: MLF 6-3 (April 2012)

maersklinelimitedcom Every Voyage has a Purpose

We have supported our armed forces for almost three decades by deploying our ships and utilizing our assets ashore Our commitment to US troops extends beyond our daily operations to partnerships with charitable organizations that support service members and their families We are proud of the role we play in their success

Dealing with corrosion of military equip-ment requires huge expenditures of money and manpower Corrosion can also hamper performance of fielded assets or require tak-ing them out of action for major clean-up efforts The Defense Department is now mak-ing strenuous efforts to reduce the cost of rust in the future

ldquoThere is lots of aging infrastructure and equipment and the military must do more with less so corrosion has gotten a higher priority in the last few yearsrdquo summarized Bill Haynes division manager for corrosion technology at SAIC

SAIC consultant Dail Thomas cited a Logistics Management Institute estimate that the Defense Department spends $225 bil-lion annually on corrosion maintenance and repair

Navy and Marine Corps aviation incurs $3 billion in annual corrosion costs while the Coast Guard incurs $03 billion The Air Force spends $54 billion and the Army $24 billion just on ground vehicles Navy ships add $32 billion to the annual corrosion bill and Marine ground vehicles $05 billion Cor-rosion on Army aviation and missiles cost $14 billion Finally defense facilities infrastruc-ture and other equipment cost $7 billion

Congress enacted legislation in December 2002 giving the Office of the Under Secretary

of Defense for Acquisition Technology and Logistics overall responsibility for preventing and mitigating effects of corrosion on mili-tary equipment and infrastructure Program managers for new Category I acquisitions must assemble teams of corrosion specialists during the acquisition process

Corrosion prevention pays extremely high returns if done early in design Thomas said one alternative a service life extension program is expensive partly because it is hard to make changes when assets have been deployed

Designs for corrosion protection can include surface protection cathodic pro-tection for underwater parts painting and advanced materials Structural parts use steel or aluminum which must get surface treat-ment to resist corrosion Thomas said ldquoAnd when the engineers use a mix of materials they must have a good process to mitigate galvanic corrosionrdquo

ldquoCorrosion is a concern across all assets especially today as there are fewer procure-ment programs on the horizon to replace legacyrdquo explained Matthew Koch program manager corrosion prevention and control (CPAC) at Marine Corps Systems Command

Like other services Marines are being asked to extend service lives well beyond their original equipment design One

example is the amphibious assault vehicle (AAV-7) After cancellation of the expedition-ary fighting vehicle (EFV) AAVs will continue to be used by Marines for many years to come

CPAC supports all ground equipment in Marine Corps Koch said his current focus is on armored vehicles and heavy combat systems but CPAC also supports tactical and ground equipment

Koch said corrosion challenges arise from three basic sources design environment and maintenance Many current systems origi-nated in the 1960s and 1970s when a 20-year service life was not considered And corrosion control must always compete with function-ality in all designs so trade-offs are inevitable

Moreover Marines operate in tough envi-ronmentsmdashin and around oceans in tropical climates and other environments that pro-mote corrosion ldquoIt is impossible to predict where a vehicle might be usedrdquo Koch empha-sized ldquoDesigning for every possible environ-ment is not practicalrdquo

Maintenance is the last chance to correct and prevent corrosion Modern equipment has better corrosion control and requires less frequent maintenance Legacy equipment requires bigger maintenance investment For-tunately reset after return from deployment allows smart investment in corrosion control and can even extend the life of equipment

The silenT eaTer of sTeel sTeals Time and money

By henry Canaday

mlf CorrespondenT

wwwMLF-kmicom4 | MLF 63

Supplemental maintenance with cor-rosion preventative compounds is used on Marine legacy equipment in annual and semi-annual maintenance During major rebuild or repainting programs material upgrades can further protect equipment but this cannot be done at operating units

For new equipment material selection and improved coatings enhance corrosion resistance Koch said use of non-metallic materials helps and isolating dissimilar metals assists in preventing galvanic cor-rosion Otherwise ldquothe loss of one metal is accelerated by contact with a different metalrdquo

Coating improvements include electro-deposited coatings (e-coat) for primers sac-rificial coatings and specialty coatings that provide mechanical and abrasion resistance in addition to corrosion protection

Designers of new equipment can also avoid creating areas that are difficult to paint that trap corrosion-inducing con-taminants or that cannot be cleaned maintained or repaired Designing out corrosion-prone areas improves corrosion

resistance at much less cost than future maintenance or redesign

Koch said better storage can also reduce corrosion of current equipment For example warehousing vehicles in pro-tective shelters with dehumidification will stop almost all corrosion

CPAC continually explores new anti-corrosion technologies But Koch said it is tough to find new technologies that fit with other equipment requirements Anti-corrosion technology must be com-patible with chemical agent resistant coat-ing (CARC) meet wear and grounding requirements be usable by the organic and commercial support base and fit cur-rent maintenance philosophies for ground vehicles

Private companies are working hard on the corrosion challenge especially for existing equipment

Daubert Chemical makes temporary rust preventatives to military specifica-tions for short- or long-term protection explained Frank Vella director of indus-trial coating sales

Short-term protection is afforded by light oil films with added rust preventa-tives that are easy to remove Mid-term protection is done with grease and waxes for good protection on uncovered equip-ment left outdoors Long-term protection comes from petroleum jelly and metal ions In all there are five grades of anti-corrosion protection

The Navy one of the hardest chal-lenges uses heavier protection for cables and ship exteriors and for ships in dry dock especially for inaccessible areas that may accumulate water

ldquoWe have been around since 1935 and doing military specs for 25 yearsrdquo Vella stressed About a quarter of Daubertrsquos business is military Vella is seeing more emphasis on environment-friendly rust prevention and Daubert is researching water-based coatings to replace solvent-based products to meet that need

Sherwin-Williams offers a full comple-ment of anti-corrosion products start-ing with pretreatment wash primers and extending up to primer layers according

Reusable minimal application time and covered in under an hour

Thatrsquos a promise

Protective flexible moisture barrier covers to fit a pistol or a missile launcher

Thatrsquos a guarantee

No Corrosion for Five + Years

wwwMLF-kmicom MLF 63 | 5

to Beth Ann Pearson military product line manager

Sherwin-Williams is a qualified sup-plier for epoxy primers identified in the MIL-DTL-53022E specification for fast-drying corrosion-inhibiting epoxy prim-ers for ferrous and non-ferrous substrates Components on mine resistant ambush protected vehicles (MRAPs) MRAP all-ter-rain vehicles and high mobility multipur-pose wheeled vehicles use these primers The company is the first approved supplier for Type IV enhanced corrosion primer with zero volatile organic content and is an approved supplier of water-based corrosion-inhibiting epoxy primers

Zinc-rich epoxies were added to MIL-DTL-53072 in 2011 and Sherwin-Williams offers one- and two-component solvent-based zinc-rich epoxy primers and several water-borne zinc epoxy primers The two-component system is used on MRAPs Finally Sherwin-Williams supplies MIL-PRF-32348 powder coatings for metallic substrates

Sherwin-Williams was the first com-pany approved under military specifica-tions for extended corrosion protection The company also offers multiple cure technologies for special application and cure challenges

Pearson said her entire industry is working on next-generation technologies to support Defensersquos Corrosion Prevention and Mitigation Strategic Plan ldquoThere are several developmental and research pro-grams underway focusing on wash primers and unique pre-treatment chemistriesrdquo she said Compact systems used in the auto industry are beginning to move into military coatings Powder coating in place of electro-coating is another trend And Sherwin-Williams is introducing epoxy aerosols which allow for a single con-tainer application for easy touch-up and repair and perhaps even small application jobs

PPG Industries makes coatings and engineered materials to mitigate corro-sion for all the services according to Heather Stephan military protective coat-ings manager These include pre-treat-ments primers topcoats and materials such as polyurea coatings ldquoWe have pow-der coatings a variety of liquid coatings and e-coatrdquo PPG provides PSX engineered Polysiloxane coatings nearly solvent-free and with unlimited re-coatability to the US Coast Guard and Navy

For decades PPG provided coatings for the auto industry and was the first company to provide e-coat to create an encapsulating barrier between steel and elements causing corrosion It now pro-vides zirconium pretreatments for e-coat to the auto industry and is working with the US military to qualify the same tech-nology where e-coats are used

PPGrsquos Durabed polyurea coating was the first bed liner used by auto makers As Mil-Tough it is used for military ground equipment ldquoThese products provide supe-rior abrasion resistance to protect ground vehicles and equipment in extremely harsh conditionsrdquo Stephan said They can be top-coated with CARC for further protection

Mil-Toughrsquos XP version provides extreme protection in abrasive environ-ments The BR version is optimized for blasts SM optimized for ballistics and FR for fire resistance

PPG has developed e-coat solutions for auto fasteners and is optimizing them for military requirements It is now con-centrating on wash primers and zinc-rich primers to enhance corrosion protection of its existing coatings

ldquoWhen people need long-term protec-tion and preservation we go in to deter-mine objectives find out what is being protected against what and for how long and how much access is neededrdquo explained Steve Hanna president of Protective Pack-aging ldquoThen we recommend a solutionrdquo Solutions can involve vapor corrosion inhibitors (VCI) bubble or shrink wraps and other technologies

Protective does 40 percent of its busi-ness for the military either directly or for shippers or defense contractors as with Boeingrsquos joint direct attack munition If necessary it can warranty that vapor will not exceed 15 percent for 20 years

Protective provides covers for MIM-104 Patriot launchers and does a lot of work for equipment left behind by deployed National Guard units for example the trucks and trailers of the Massachusetts National Guard It has just completed pro-tection for F-35 joint strike fighters sent on ships to foreign customers

Protectiversquos toughest challenge was protecting a radar unit in the South Pacific ldquoWe designed it here and spent two weeks trying to cover it but the wind never went below 40 miles per hourrdquo Hanna remem-bered ldquoThey told us to go home and they would put it on when the wind died down If

we had known this we would have designed a smaller cover so we could get it onrdquo

Protective can guard against corrosion ultraviolet (UV) rays dust mildew mold ldquoyou name itrdquo Hanna said ldquoA long time ago they would just put cosmoline on it but in 40 years you have to chip that off with chiselrdquo He emphasized there is no one-size-fits all anti-corrosion solution but each must be tailored to specific needs

Transhield makes tarps that fit over military equipment and are waterproof breathable have VCIs that bind with fer-rous metal and can reduce corrosion 85 to 95 percent said Jeff Holt director of government sales The equipment also pro-tects against temperature spikes from UV rays that damage electric cables and rubber seals condense water and thus cause cor-rosion inside vehicles

The company is the preferred provider for Marines having delivered 20000 cov-ers and the Army and Navy are interested Its covers protect generators AAVs light armored vehicles the M1 Abrams and M109 Paladin Current Transhield covers last for two to four years although VCIs last longer

Transhield is working on a new prod-uct Armadillo that will last three to five years be more breathable and add protec-tion against biological damage from mold fungus and mildew

Milspray Military Technologies offers a mobile corrosion repair facility on wheels and technicians for deployment to bases of heavy assets equipment and weapons explained Marketing Manager and Chemi-cal Engineer Chantel Robinson ldquoWe do corrosion repair prevention and mainte-nance on siterdquo

Milspray has deployed at 48 sites in four years including six in Japan but none in Iraq or Afghanistan The mobile facilities can also do CARC painting drop and reap-ply armor coat undercarriages and vehicle bed-liners and do minor maintenance on common parts

Milspray is now adding some new touch-up paint products The company works for the Marine Corps O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwMLF-kmicom6 | MLF 63

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

QUAD CITIESi wireless Center 1201 River Drive Moline IL

2012 Midwest Small Business Government Contracting Symposium

May 22-24 20I2

IOWA

ILLINOISOISOISO

500miles

(8046 km)

300miles

(4828 km)

Minneapolis

Kansas City

Omaha

Chicago

St Louis

Indianapolis

Mississip

pi River

DetroitMilwaukeeMadison

Des Moines

Cincinnati

Louisville

Columbus

QUAD CITIESQUAD CITIES

2012 Midwest Small Business

For more information and to register for the Symposium visit wwwndia-ia-ilorg

bull BI-STATE REGION INCLUDING CITIES OF MOLINE EAST MOLINE ROCK ISLAND DAVENPORT AND BETTENDORF

bull HOME OF ROCK ISLAND ARSENAL A MAJOR MILITARY INSTALLATION

bull EFFICIENT MULTIMODAL TRANSPORTATION OPTIONS

bull POWER RATES SIGNIFICANTLY LOWER THAN NATIONAL AVERAGE

bull LARGEST 300-MILE MARKET WEST OF CHICAGO

bull 428000-STRONG LABOR FORCE (AND GROWING)

About the Quad Citiesbull 40 COLLEGES AND

UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

bull FLEXIBLE BUSINESS ASSISTANCE PROGRAMS

bull FIRST POINT OF CONTACT FOR ILLINOIS AND IOWA

bull HOME OF DEERE amp COMPANY WORLD HEADQUARTERS QuadCitiesFirstcom

Donrsquot miss this opportunity

to grow your business

with the Rock Island Arsenal

bull Identify new business opportunity

bull EAGLE update

bull Prime contractorsmall business matchmaking session

bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

bull Presentations by Senior DoD Offi cials

Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 6: MLF 6-3 (April 2012)

Dealing with corrosion of military equip-ment requires huge expenditures of money and manpower Corrosion can also hamper performance of fielded assets or require tak-ing them out of action for major clean-up efforts The Defense Department is now mak-ing strenuous efforts to reduce the cost of rust in the future

ldquoThere is lots of aging infrastructure and equipment and the military must do more with less so corrosion has gotten a higher priority in the last few yearsrdquo summarized Bill Haynes division manager for corrosion technology at SAIC

SAIC consultant Dail Thomas cited a Logistics Management Institute estimate that the Defense Department spends $225 bil-lion annually on corrosion maintenance and repair

Navy and Marine Corps aviation incurs $3 billion in annual corrosion costs while the Coast Guard incurs $03 billion The Air Force spends $54 billion and the Army $24 billion just on ground vehicles Navy ships add $32 billion to the annual corrosion bill and Marine ground vehicles $05 billion Cor-rosion on Army aviation and missiles cost $14 billion Finally defense facilities infrastruc-ture and other equipment cost $7 billion

Congress enacted legislation in December 2002 giving the Office of the Under Secretary

of Defense for Acquisition Technology and Logistics overall responsibility for preventing and mitigating effects of corrosion on mili-tary equipment and infrastructure Program managers for new Category I acquisitions must assemble teams of corrosion specialists during the acquisition process

Corrosion prevention pays extremely high returns if done early in design Thomas said one alternative a service life extension program is expensive partly because it is hard to make changes when assets have been deployed

Designs for corrosion protection can include surface protection cathodic pro-tection for underwater parts painting and advanced materials Structural parts use steel or aluminum which must get surface treat-ment to resist corrosion Thomas said ldquoAnd when the engineers use a mix of materials they must have a good process to mitigate galvanic corrosionrdquo

ldquoCorrosion is a concern across all assets especially today as there are fewer procure-ment programs on the horizon to replace legacyrdquo explained Matthew Koch program manager corrosion prevention and control (CPAC) at Marine Corps Systems Command

Like other services Marines are being asked to extend service lives well beyond their original equipment design One

example is the amphibious assault vehicle (AAV-7) After cancellation of the expedition-ary fighting vehicle (EFV) AAVs will continue to be used by Marines for many years to come

CPAC supports all ground equipment in Marine Corps Koch said his current focus is on armored vehicles and heavy combat systems but CPAC also supports tactical and ground equipment

Koch said corrosion challenges arise from three basic sources design environment and maintenance Many current systems origi-nated in the 1960s and 1970s when a 20-year service life was not considered And corrosion control must always compete with function-ality in all designs so trade-offs are inevitable

Moreover Marines operate in tough envi-ronmentsmdashin and around oceans in tropical climates and other environments that pro-mote corrosion ldquoIt is impossible to predict where a vehicle might be usedrdquo Koch empha-sized ldquoDesigning for every possible environ-ment is not practicalrdquo

Maintenance is the last chance to correct and prevent corrosion Modern equipment has better corrosion control and requires less frequent maintenance Legacy equipment requires bigger maintenance investment For-tunately reset after return from deployment allows smart investment in corrosion control and can even extend the life of equipment

The silenT eaTer of sTeel sTeals Time and money

By henry Canaday

mlf CorrespondenT

wwwMLF-kmicom4 | MLF 63

Supplemental maintenance with cor-rosion preventative compounds is used on Marine legacy equipment in annual and semi-annual maintenance During major rebuild or repainting programs material upgrades can further protect equipment but this cannot be done at operating units

For new equipment material selection and improved coatings enhance corrosion resistance Koch said use of non-metallic materials helps and isolating dissimilar metals assists in preventing galvanic cor-rosion Otherwise ldquothe loss of one metal is accelerated by contact with a different metalrdquo

Coating improvements include electro-deposited coatings (e-coat) for primers sac-rificial coatings and specialty coatings that provide mechanical and abrasion resistance in addition to corrosion protection

Designers of new equipment can also avoid creating areas that are difficult to paint that trap corrosion-inducing con-taminants or that cannot be cleaned maintained or repaired Designing out corrosion-prone areas improves corrosion

resistance at much less cost than future maintenance or redesign

Koch said better storage can also reduce corrosion of current equipment For example warehousing vehicles in pro-tective shelters with dehumidification will stop almost all corrosion

CPAC continually explores new anti-corrosion technologies But Koch said it is tough to find new technologies that fit with other equipment requirements Anti-corrosion technology must be com-patible with chemical agent resistant coat-ing (CARC) meet wear and grounding requirements be usable by the organic and commercial support base and fit cur-rent maintenance philosophies for ground vehicles

Private companies are working hard on the corrosion challenge especially for existing equipment

Daubert Chemical makes temporary rust preventatives to military specifica-tions for short- or long-term protection explained Frank Vella director of indus-trial coating sales

Short-term protection is afforded by light oil films with added rust preventa-tives that are easy to remove Mid-term protection is done with grease and waxes for good protection on uncovered equip-ment left outdoors Long-term protection comes from petroleum jelly and metal ions In all there are five grades of anti-corrosion protection

The Navy one of the hardest chal-lenges uses heavier protection for cables and ship exteriors and for ships in dry dock especially for inaccessible areas that may accumulate water

ldquoWe have been around since 1935 and doing military specs for 25 yearsrdquo Vella stressed About a quarter of Daubertrsquos business is military Vella is seeing more emphasis on environment-friendly rust prevention and Daubert is researching water-based coatings to replace solvent-based products to meet that need

Sherwin-Williams offers a full comple-ment of anti-corrosion products start-ing with pretreatment wash primers and extending up to primer layers according

Reusable minimal application time and covered in under an hour

Thatrsquos a promise

Protective flexible moisture barrier covers to fit a pistol or a missile launcher

Thatrsquos a guarantee

No Corrosion for Five + Years

wwwMLF-kmicom MLF 63 | 5

to Beth Ann Pearson military product line manager

Sherwin-Williams is a qualified sup-plier for epoxy primers identified in the MIL-DTL-53022E specification for fast-drying corrosion-inhibiting epoxy prim-ers for ferrous and non-ferrous substrates Components on mine resistant ambush protected vehicles (MRAPs) MRAP all-ter-rain vehicles and high mobility multipur-pose wheeled vehicles use these primers The company is the first approved supplier for Type IV enhanced corrosion primer with zero volatile organic content and is an approved supplier of water-based corrosion-inhibiting epoxy primers

Zinc-rich epoxies were added to MIL-DTL-53072 in 2011 and Sherwin-Williams offers one- and two-component solvent-based zinc-rich epoxy primers and several water-borne zinc epoxy primers The two-component system is used on MRAPs Finally Sherwin-Williams supplies MIL-PRF-32348 powder coatings for metallic substrates

Sherwin-Williams was the first com-pany approved under military specifica-tions for extended corrosion protection The company also offers multiple cure technologies for special application and cure challenges

Pearson said her entire industry is working on next-generation technologies to support Defensersquos Corrosion Prevention and Mitigation Strategic Plan ldquoThere are several developmental and research pro-grams underway focusing on wash primers and unique pre-treatment chemistriesrdquo she said Compact systems used in the auto industry are beginning to move into military coatings Powder coating in place of electro-coating is another trend And Sherwin-Williams is introducing epoxy aerosols which allow for a single con-tainer application for easy touch-up and repair and perhaps even small application jobs

PPG Industries makes coatings and engineered materials to mitigate corro-sion for all the services according to Heather Stephan military protective coat-ings manager These include pre-treat-ments primers topcoats and materials such as polyurea coatings ldquoWe have pow-der coatings a variety of liquid coatings and e-coatrdquo PPG provides PSX engineered Polysiloxane coatings nearly solvent-free and with unlimited re-coatability to the US Coast Guard and Navy

For decades PPG provided coatings for the auto industry and was the first company to provide e-coat to create an encapsulating barrier between steel and elements causing corrosion It now pro-vides zirconium pretreatments for e-coat to the auto industry and is working with the US military to qualify the same tech-nology where e-coats are used

PPGrsquos Durabed polyurea coating was the first bed liner used by auto makers As Mil-Tough it is used for military ground equipment ldquoThese products provide supe-rior abrasion resistance to protect ground vehicles and equipment in extremely harsh conditionsrdquo Stephan said They can be top-coated with CARC for further protection

Mil-Toughrsquos XP version provides extreme protection in abrasive environ-ments The BR version is optimized for blasts SM optimized for ballistics and FR for fire resistance

PPG has developed e-coat solutions for auto fasteners and is optimizing them for military requirements It is now con-centrating on wash primers and zinc-rich primers to enhance corrosion protection of its existing coatings

ldquoWhen people need long-term protec-tion and preservation we go in to deter-mine objectives find out what is being protected against what and for how long and how much access is neededrdquo explained Steve Hanna president of Protective Pack-aging ldquoThen we recommend a solutionrdquo Solutions can involve vapor corrosion inhibitors (VCI) bubble or shrink wraps and other technologies

Protective does 40 percent of its busi-ness for the military either directly or for shippers or defense contractors as with Boeingrsquos joint direct attack munition If necessary it can warranty that vapor will not exceed 15 percent for 20 years

Protective provides covers for MIM-104 Patriot launchers and does a lot of work for equipment left behind by deployed National Guard units for example the trucks and trailers of the Massachusetts National Guard It has just completed pro-tection for F-35 joint strike fighters sent on ships to foreign customers

Protectiversquos toughest challenge was protecting a radar unit in the South Pacific ldquoWe designed it here and spent two weeks trying to cover it but the wind never went below 40 miles per hourrdquo Hanna remem-bered ldquoThey told us to go home and they would put it on when the wind died down If

we had known this we would have designed a smaller cover so we could get it onrdquo

Protective can guard against corrosion ultraviolet (UV) rays dust mildew mold ldquoyou name itrdquo Hanna said ldquoA long time ago they would just put cosmoline on it but in 40 years you have to chip that off with chiselrdquo He emphasized there is no one-size-fits all anti-corrosion solution but each must be tailored to specific needs

Transhield makes tarps that fit over military equipment and are waterproof breathable have VCIs that bind with fer-rous metal and can reduce corrosion 85 to 95 percent said Jeff Holt director of government sales The equipment also pro-tects against temperature spikes from UV rays that damage electric cables and rubber seals condense water and thus cause cor-rosion inside vehicles

The company is the preferred provider for Marines having delivered 20000 cov-ers and the Army and Navy are interested Its covers protect generators AAVs light armored vehicles the M1 Abrams and M109 Paladin Current Transhield covers last for two to four years although VCIs last longer

Transhield is working on a new prod-uct Armadillo that will last three to five years be more breathable and add protec-tion against biological damage from mold fungus and mildew

Milspray Military Technologies offers a mobile corrosion repair facility on wheels and technicians for deployment to bases of heavy assets equipment and weapons explained Marketing Manager and Chemi-cal Engineer Chantel Robinson ldquoWe do corrosion repair prevention and mainte-nance on siterdquo

Milspray has deployed at 48 sites in four years including six in Japan but none in Iraq or Afghanistan The mobile facilities can also do CARC painting drop and reap-ply armor coat undercarriages and vehicle bed-liners and do minor maintenance on common parts

Milspray is now adding some new touch-up paint products The company works for the Marine Corps O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwMLF-kmicom6 | MLF 63

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

QUAD CITIESi wireless Center 1201 River Drive Moline IL

2012 Midwest Small Business Government Contracting Symposium

May 22-24 20I2

IOWA

ILLINOISOISOISO

500miles

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300miles

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Minneapolis

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Chicago

St Louis

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Mississip

pi River

DetroitMilwaukeeMadison

Des Moines

Cincinnati

Louisville

Columbus

QUAD CITIESQUAD CITIES

2012 Midwest Small Business

For more information and to register for the Symposium visit wwwndia-ia-ilorg

bull BI-STATE REGION INCLUDING CITIES OF MOLINE EAST MOLINE ROCK ISLAND DAVENPORT AND BETTENDORF

bull HOME OF ROCK ISLAND ARSENAL A MAJOR MILITARY INSTALLATION

bull EFFICIENT MULTIMODAL TRANSPORTATION OPTIONS

bull POWER RATES SIGNIFICANTLY LOWER THAN NATIONAL AVERAGE

bull LARGEST 300-MILE MARKET WEST OF CHICAGO

bull 428000-STRONG LABOR FORCE (AND GROWING)

About the Quad Citiesbull 40 COLLEGES AND

UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

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bull FIRST POINT OF CONTACT FOR ILLINOIS AND IOWA

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Donrsquot miss this opportunity

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with the Rock Island Arsenal

bull Identify new business opportunity

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bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

bull Presentations by Senior DoD Offi cials

Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 7: MLF 6-3 (April 2012)

Supplemental maintenance with cor-rosion preventative compounds is used on Marine legacy equipment in annual and semi-annual maintenance During major rebuild or repainting programs material upgrades can further protect equipment but this cannot be done at operating units

For new equipment material selection and improved coatings enhance corrosion resistance Koch said use of non-metallic materials helps and isolating dissimilar metals assists in preventing galvanic cor-rosion Otherwise ldquothe loss of one metal is accelerated by contact with a different metalrdquo

Coating improvements include electro-deposited coatings (e-coat) for primers sac-rificial coatings and specialty coatings that provide mechanical and abrasion resistance in addition to corrosion protection

Designers of new equipment can also avoid creating areas that are difficult to paint that trap corrosion-inducing con-taminants or that cannot be cleaned maintained or repaired Designing out corrosion-prone areas improves corrosion

resistance at much less cost than future maintenance or redesign

Koch said better storage can also reduce corrosion of current equipment For example warehousing vehicles in pro-tective shelters with dehumidification will stop almost all corrosion

CPAC continually explores new anti-corrosion technologies But Koch said it is tough to find new technologies that fit with other equipment requirements Anti-corrosion technology must be com-patible with chemical agent resistant coat-ing (CARC) meet wear and grounding requirements be usable by the organic and commercial support base and fit cur-rent maintenance philosophies for ground vehicles

Private companies are working hard on the corrosion challenge especially for existing equipment

Daubert Chemical makes temporary rust preventatives to military specifica-tions for short- or long-term protection explained Frank Vella director of indus-trial coating sales

Short-term protection is afforded by light oil films with added rust preventa-tives that are easy to remove Mid-term protection is done with grease and waxes for good protection on uncovered equip-ment left outdoors Long-term protection comes from petroleum jelly and metal ions In all there are five grades of anti-corrosion protection

The Navy one of the hardest chal-lenges uses heavier protection for cables and ship exteriors and for ships in dry dock especially for inaccessible areas that may accumulate water

ldquoWe have been around since 1935 and doing military specs for 25 yearsrdquo Vella stressed About a quarter of Daubertrsquos business is military Vella is seeing more emphasis on environment-friendly rust prevention and Daubert is researching water-based coatings to replace solvent-based products to meet that need

Sherwin-Williams offers a full comple-ment of anti-corrosion products start-ing with pretreatment wash primers and extending up to primer layers according

Reusable minimal application time and covered in under an hour

Thatrsquos a promise

Protective flexible moisture barrier covers to fit a pistol or a missile launcher

Thatrsquos a guarantee

No Corrosion for Five + Years

wwwMLF-kmicom MLF 63 | 5

to Beth Ann Pearson military product line manager

Sherwin-Williams is a qualified sup-plier for epoxy primers identified in the MIL-DTL-53022E specification for fast-drying corrosion-inhibiting epoxy prim-ers for ferrous and non-ferrous substrates Components on mine resistant ambush protected vehicles (MRAPs) MRAP all-ter-rain vehicles and high mobility multipur-pose wheeled vehicles use these primers The company is the first approved supplier for Type IV enhanced corrosion primer with zero volatile organic content and is an approved supplier of water-based corrosion-inhibiting epoxy primers

Zinc-rich epoxies were added to MIL-DTL-53072 in 2011 and Sherwin-Williams offers one- and two-component solvent-based zinc-rich epoxy primers and several water-borne zinc epoxy primers The two-component system is used on MRAPs Finally Sherwin-Williams supplies MIL-PRF-32348 powder coatings for metallic substrates

Sherwin-Williams was the first com-pany approved under military specifica-tions for extended corrosion protection The company also offers multiple cure technologies for special application and cure challenges

Pearson said her entire industry is working on next-generation technologies to support Defensersquos Corrosion Prevention and Mitigation Strategic Plan ldquoThere are several developmental and research pro-grams underway focusing on wash primers and unique pre-treatment chemistriesrdquo she said Compact systems used in the auto industry are beginning to move into military coatings Powder coating in place of electro-coating is another trend And Sherwin-Williams is introducing epoxy aerosols which allow for a single con-tainer application for easy touch-up and repair and perhaps even small application jobs

PPG Industries makes coatings and engineered materials to mitigate corro-sion for all the services according to Heather Stephan military protective coat-ings manager These include pre-treat-ments primers topcoats and materials such as polyurea coatings ldquoWe have pow-der coatings a variety of liquid coatings and e-coatrdquo PPG provides PSX engineered Polysiloxane coatings nearly solvent-free and with unlimited re-coatability to the US Coast Guard and Navy

For decades PPG provided coatings for the auto industry and was the first company to provide e-coat to create an encapsulating barrier between steel and elements causing corrosion It now pro-vides zirconium pretreatments for e-coat to the auto industry and is working with the US military to qualify the same tech-nology where e-coats are used

PPGrsquos Durabed polyurea coating was the first bed liner used by auto makers As Mil-Tough it is used for military ground equipment ldquoThese products provide supe-rior abrasion resistance to protect ground vehicles and equipment in extremely harsh conditionsrdquo Stephan said They can be top-coated with CARC for further protection

Mil-Toughrsquos XP version provides extreme protection in abrasive environ-ments The BR version is optimized for blasts SM optimized for ballistics and FR for fire resistance

PPG has developed e-coat solutions for auto fasteners and is optimizing them for military requirements It is now con-centrating on wash primers and zinc-rich primers to enhance corrosion protection of its existing coatings

ldquoWhen people need long-term protec-tion and preservation we go in to deter-mine objectives find out what is being protected against what and for how long and how much access is neededrdquo explained Steve Hanna president of Protective Pack-aging ldquoThen we recommend a solutionrdquo Solutions can involve vapor corrosion inhibitors (VCI) bubble or shrink wraps and other technologies

Protective does 40 percent of its busi-ness for the military either directly or for shippers or defense contractors as with Boeingrsquos joint direct attack munition If necessary it can warranty that vapor will not exceed 15 percent for 20 years

Protective provides covers for MIM-104 Patriot launchers and does a lot of work for equipment left behind by deployed National Guard units for example the trucks and trailers of the Massachusetts National Guard It has just completed pro-tection for F-35 joint strike fighters sent on ships to foreign customers

Protectiversquos toughest challenge was protecting a radar unit in the South Pacific ldquoWe designed it here and spent two weeks trying to cover it but the wind never went below 40 miles per hourrdquo Hanna remem-bered ldquoThey told us to go home and they would put it on when the wind died down If

we had known this we would have designed a smaller cover so we could get it onrdquo

Protective can guard against corrosion ultraviolet (UV) rays dust mildew mold ldquoyou name itrdquo Hanna said ldquoA long time ago they would just put cosmoline on it but in 40 years you have to chip that off with chiselrdquo He emphasized there is no one-size-fits all anti-corrosion solution but each must be tailored to specific needs

Transhield makes tarps that fit over military equipment and are waterproof breathable have VCIs that bind with fer-rous metal and can reduce corrosion 85 to 95 percent said Jeff Holt director of government sales The equipment also pro-tects against temperature spikes from UV rays that damage electric cables and rubber seals condense water and thus cause cor-rosion inside vehicles

The company is the preferred provider for Marines having delivered 20000 cov-ers and the Army and Navy are interested Its covers protect generators AAVs light armored vehicles the M1 Abrams and M109 Paladin Current Transhield covers last for two to four years although VCIs last longer

Transhield is working on a new prod-uct Armadillo that will last three to five years be more breathable and add protec-tion against biological damage from mold fungus and mildew

Milspray Military Technologies offers a mobile corrosion repair facility on wheels and technicians for deployment to bases of heavy assets equipment and weapons explained Marketing Manager and Chemi-cal Engineer Chantel Robinson ldquoWe do corrosion repair prevention and mainte-nance on siterdquo

Milspray has deployed at 48 sites in four years including six in Japan but none in Iraq or Afghanistan The mobile facilities can also do CARC painting drop and reap-ply armor coat undercarriages and vehicle bed-liners and do minor maintenance on common parts

Milspray is now adding some new touch-up paint products The company works for the Marine Corps O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwMLF-kmicom6 | MLF 63

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

QUAD CITIESi wireless Center 1201 River Drive Moline IL

2012 Midwest Small Business Government Contracting Symposium

May 22-24 20I2

IOWA

ILLINOISOISOISO

500miles

(8046 km)

300miles

(4828 km)

Minneapolis

Kansas City

Omaha

Chicago

St Louis

Indianapolis

Mississip

pi River

DetroitMilwaukeeMadison

Des Moines

Cincinnati

Louisville

Columbus

QUAD CITIESQUAD CITIES

2012 Midwest Small Business

For more information and to register for the Symposium visit wwwndia-ia-ilorg

bull BI-STATE REGION INCLUDING CITIES OF MOLINE EAST MOLINE ROCK ISLAND DAVENPORT AND BETTENDORF

bull HOME OF ROCK ISLAND ARSENAL A MAJOR MILITARY INSTALLATION

bull EFFICIENT MULTIMODAL TRANSPORTATION OPTIONS

bull POWER RATES SIGNIFICANTLY LOWER THAN NATIONAL AVERAGE

bull LARGEST 300-MILE MARKET WEST OF CHICAGO

bull 428000-STRONG LABOR FORCE (AND GROWING)

About the Quad Citiesbull 40 COLLEGES AND

UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

bull FLEXIBLE BUSINESS ASSISTANCE PROGRAMS

bull FIRST POINT OF CONTACT FOR ILLINOIS AND IOWA

bull HOME OF DEERE amp COMPANY WORLD HEADQUARTERS QuadCitiesFirstcom

Donrsquot miss this opportunity

to grow your business

with the Rock Island Arsenal

bull Identify new business opportunity

bull EAGLE update

bull Prime contractorsmall business matchmaking session

bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

bull Presentations by Senior DoD Offi cials

Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

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wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

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dex

is pr

ovid

ed a

s a se

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 8: MLF 6-3 (April 2012)

to Beth Ann Pearson military product line manager

Sherwin-Williams is a qualified sup-plier for epoxy primers identified in the MIL-DTL-53022E specification for fast-drying corrosion-inhibiting epoxy prim-ers for ferrous and non-ferrous substrates Components on mine resistant ambush protected vehicles (MRAPs) MRAP all-ter-rain vehicles and high mobility multipur-pose wheeled vehicles use these primers The company is the first approved supplier for Type IV enhanced corrosion primer with zero volatile organic content and is an approved supplier of water-based corrosion-inhibiting epoxy primers

Zinc-rich epoxies were added to MIL-DTL-53072 in 2011 and Sherwin-Williams offers one- and two-component solvent-based zinc-rich epoxy primers and several water-borne zinc epoxy primers The two-component system is used on MRAPs Finally Sherwin-Williams supplies MIL-PRF-32348 powder coatings for metallic substrates

Sherwin-Williams was the first com-pany approved under military specifica-tions for extended corrosion protection The company also offers multiple cure technologies for special application and cure challenges

Pearson said her entire industry is working on next-generation technologies to support Defensersquos Corrosion Prevention and Mitigation Strategic Plan ldquoThere are several developmental and research pro-grams underway focusing on wash primers and unique pre-treatment chemistriesrdquo she said Compact systems used in the auto industry are beginning to move into military coatings Powder coating in place of electro-coating is another trend And Sherwin-Williams is introducing epoxy aerosols which allow for a single con-tainer application for easy touch-up and repair and perhaps even small application jobs

PPG Industries makes coatings and engineered materials to mitigate corro-sion for all the services according to Heather Stephan military protective coat-ings manager These include pre-treat-ments primers topcoats and materials such as polyurea coatings ldquoWe have pow-der coatings a variety of liquid coatings and e-coatrdquo PPG provides PSX engineered Polysiloxane coatings nearly solvent-free and with unlimited re-coatability to the US Coast Guard and Navy

For decades PPG provided coatings for the auto industry and was the first company to provide e-coat to create an encapsulating barrier between steel and elements causing corrosion It now pro-vides zirconium pretreatments for e-coat to the auto industry and is working with the US military to qualify the same tech-nology where e-coats are used

PPGrsquos Durabed polyurea coating was the first bed liner used by auto makers As Mil-Tough it is used for military ground equipment ldquoThese products provide supe-rior abrasion resistance to protect ground vehicles and equipment in extremely harsh conditionsrdquo Stephan said They can be top-coated with CARC for further protection

Mil-Toughrsquos XP version provides extreme protection in abrasive environ-ments The BR version is optimized for blasts SM optimized for ballistics and FR for fire resistance

PPG has developed e-coat solutions for auto fasteners and is optimizing them for military requirements It is now con-centrating on wash primers and zinc-rich primers to enhance corrosion protection of its existing coatings

ldquoWhen people need long-term protec-tion and preservation we go in to deter-mine objectives find out what is being protected against what and for how long and how much access is neededrdquo explained Steve Hanna president of Protective Pack-aging ldquoThen we recommend a solutionrdquo Solutions can involve vapor corrosion inhibitors (VCI) bubble or shrink wraps and other technologies

Protective does 40 percent of its busi-ness for the military either directly or for shippers or defense contractors as with Boeingrsquos joint direct attack munition If necessary it can warranty that vapor will not exceed 15 percent for 20 years

Protective provides covers for MIM-104 Patriot launchers and does a lot of work for equipment left behind by deployed National Guard units for example the trucks and trailers of the Massachusetts National Guard It has just completed pro-tection for F-35 joint strike fighters sent on ships to foreign customers

Protectiversquos toughest challenge was protecting a radar unit in the South Pacific ldquoWe designed it here and spent two weeks trying to cover it but the wind never went below 40 miles per hourrdquo Hanna remem-bered ldquoThey told us to go home and they would put it on when the wind died down If

we had known this we would have designed a smaller cover so we could get it onrdquo

Protective can guard against corrosion ultraviolet (UV) rays dust mildew mold ldquoyou name itrdquo Hanna said ldquoA long time ago they would just put cosmoline on it but in 40 years you have to chip that off with chiselrdquo He emphasized there is no one-size-fits all anti-corrosion solution but each must be tailored to specific needs

Transhield makes tarps that fit over military equipment and are waterproof breathable have VCIs that bind with fer-rous metal and can reduce corrosion 85 to 95 percent said Jeff Holt director of government sales The equipment also pro-tects against temperature spikes from UV rays that damage electric cables and rubber seals condense water and thus cause cor-rosion inside vehicles

The company is the preferred provider for Marines having delivered 20000 cov-ers and the Army and Navy are interested Its covers protect generators AAVs light armored vehicles the M1 Abrams and M109 Paladin Current Transhield covers last for two to four years although VCIs last longer

Transhield is working on a new prod-uct Armadillo that will last three to five years be more breathable and add protec-tion against biological damage from mold fungus and mildew

Milspray Military Technologies offers a mobile corrosion repair facility on wheels and technicians for deployment to bases of heavy assets equipment and weapons explained Marketing Manager and Chemi-cal Engineer Chantel Robinson ldquoWe do corrosion repair prevention and mainte-nance on siterdquo

Milspray has deployed at 48 sites in four years including six in Japan but none in Iraq or Afghanistan The mobile facilities can also do CARC painting drop and reap-ply armor coat undercarriages and vehicle bed-liners and do minor maintenance on common parts

Milspray is now adding some new touch-up paint products The company works for the Marine Corps O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwMLF-kmicom6 | MLF 63

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

QUAD CITIESi wireless Center 1201 River Drive Moline IL

2012 Midwest Small Business Government Contracting Symposium

May 22-24 20I2

IOWA

ILLINOISOISOISO

500miles

(8046 km)

300miles

(4828 km)

Minneapolis

Kansas City

Omaha

Chicago

St Louis

Indianapolis

Mississip

pi River

DetroitMilwaukeeMadison

Des Moines

Cincinnati

Louisville

Columbus

QUAD CITIESQUAD CITIES

2012 Midwest Small Business

For more information and to register for the Symposium visit wwwndia-ia-ilorg

bull BI-STATE REGION INCLUDING CITIES OF MOLINE EAST MOLINE ROCK ISLAND DAVENPORT AND BETTENDORF

bull HOME OF ROCK ISLAND ARSENAL A MAJOR MILITARY INSTALLATION

bull EFFICIENT MULTIMODAL TRANSPORTATION OPTIONS

bull POWER RATES SIGNIFICANTLY LOWER THAN NATIONAL AVERAGE

bull LARGEST 300-MILE MARKET WEST OF CHICAGO

bull 428000-STRONG LABOR FORCE (AND GROWING)

About the Quad Citiesbull 40 COLLEGES AND

UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

bull FLEXIBLE BUSINESS ASSISTANCE PROGRAMS

bull FIRST POINT OF CONTACT FOR ILLINOIS AND IOWA

bull HOME OF DEERE amp COMPANY WORLD HEADQUARTERS QuadCitiesFirstcom

Donrsquot miss this opportunity

to grow your business

with the Rock Island Arsenal

bull Identify new business opportunity

bull EAGLE update

bull Prime contractorsmall business matchmaking session

bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

bull Presentations by Senior DoD Offi cials

Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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dex

is pr

ovid

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rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 9: MLF 6-3 (April 2012)

Colonel James O Fly Jr serves as the 46th commander of the Rock Island Arsenal (RIA) a position he has held since September 2 2010

As commanding officer Fly oversees operations of the only multi-purpose and vertically integrated metal manufacturer in the Department of Defense applying the unique technical expertise and equipment to manufacture products high in quality and sustainability

Fly came to RIA from the US Army Sus-tainment Command where he served as the deputy commander of the 402nd Army Field Support Brigade at Camp Arifjan Kuwait Prior to that he served as the deputy G35 Operations and Plans for the 8th Theater Sustainment Command at Schofield Bar-racks Hawaii

He enlisted in the Army Reserve in 1982 where he served for four years He was com-missioned as an Army officer in 1986 follow-ing his graduation from the University of Washington in Seattle Wash After complet-ing the Infantry Officer Basic Course he

was assigned as a platoon leader in the 1st Armored Division in Bamberg Germany

During his career Fly has commanded an infantry and a maintenance company as well as a combat sustainment support bat-talion He served in the US and overseas in locations such as Germany Iraq Fort Hood Texas Fort Campbell Ky and Schofield Barracks His assignments include serving as observercontroller for the Seventh Army Combat Maneuver Training Center at Hohen-fels Germany deputy group commander for the 101st Corps Support Group at Fort Camp-bell battalion commander 524th Combat Sustainment Support Battalion headquar-tered at Schofield Barracks

His combat service includes assignments with the 1st Armored Division in Operation Desert Storm and the 1st and 3rd Corps Sup-port Commands in Operation Iraqi Freedom

In addition to his bachelorrsquos degree in fisheries biology from the University of Wash-ington he holds masterrsquos degrees in adult education from Kansas State University and strategy and planning from the US Naval

War College He is a graduate of the US Army Command and General Staff College

His awards and decorations include the Bronze Star Medal with two Oak Leaf Clus-ters the Meritorious Service Medal with four Oak Leaf clusters the Army Commenda-tion Medal with two Oak Leaf Clusters the Army Achievement Medal with three Oak Leaf Clusters Combat Infantrymanrsquos Badge Expert Infantrymanrsquos Badge Combat Action Badge Parachutist Badge Air Assault Badge and Ranger Tab

Q Thank you for taking the time to talk with us Colonel Fly Why was the Rock Island Arsenal [RIA] established 150 years ago

A Acts of Congress in 1809 established Rock Island as a military reservation Destruction of Harperrsquos Ferry Arsenal in 1859 spurred Congress to see the need for ldquoinsurancerdquo for the militaryrsquos ordnance In July 1862 Congress established RIA as a facility for the deposit and repair of ordnance at Rock Island

Since then the Rock Island Arsenal has provided equipment for the military in every major conflict since the Spanish American War From making meat cans and horse tack at its inception to producing recoil mecha-nisms and advanced armor solutions today this arsenal has answered its call to duty for nearly 150 years

skills and CapaBiliTies join TogeTher in a faCiliTy ThaT supporTs The indusTrial Base

Military Logistics Forum recently interviewed Colonel James Fly Jr the commander of the Rock Island Arsenal to see what role the arsenal will have and what contributions it will make to strengthen and rebuild the Army of the future

Colonel James O Fly JrCommanderRock Island Arsenal

wwwMLF-kmicom MLF 63 | 7

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

QUAD CITIESi wireless Center 1201 River Drive Moline IL

2012 Midwest Small Business Government Contracting Symposium

May 22-24 20I2

IOWA

ILLINOISOISOISO

500miles

(8046 km)

300miles

(4828 km)

Minneapolis

Kansas City

Omaha

Chicago

St Louis

Indianapolis

Mississip

pi River

DetroitMilwaukeeMadison

Des Moines

Cincinnati

Louisville

Columbus

QUAD CITIESQUAD CITIES

2012 Midwest Small Business

For more information and to register for the Symposium visit wwwndia-ia-ilorg

bull BI-STATE REGION INCLUDING CITIES OF MOLINE EAST MOLINE ROCK ISLAND DAVENPORT AND BETTENDORF

bull HOME OF ROCK ISLAND ARSENAL A MAJOR MILITARY INSTALLATION

bull EFFICIENT MULTIMODAL TRANSPORTATION OPTIONS

bull POWER RATES SIGNIFICANTLY LOWER THAN NATIONAL AVERAGE

bull LARGEST 300-MILE MARKET WEST OF CHICAGO

bull 428000-STRONG LABOR FORCE (AND GROWING)

About the Quad Citiesbull 40 COLLEGES AND

UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

bull FLEXIBLE BUSINESS ASSISTANCE PROGRAMS

bull FIRST POINT OF CONTACT FOR ILLINOIS AND IOWA

bull HOME OF DEERE amp COMPANY WORLD HEADQUARTERS QuadCitiesFirstcom

Donrsquot miss this opportunity

to grow your business

with the Rock Island Arsenal

bull Identify new business opportunity

bull EAGLE update

bull Prime contractorsmall business matchmaking session

bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

bull Presentations by Senior DoD Offi cials

Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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is pr

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

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May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

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September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

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with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

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DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 10: MLF 6-3 (April 2012)

Q One-hundred-fifty years of soldier support is a long time How has the arsenal stayed relevant and ready to support

A I am lucky enough to be the 46th com-mander of this historic arsenal The first com-mander of RIA started with just three stone buildings Today we cover 28 buildings and more than 3 million square feet of manufac-turing and warehouse space with more than 1000 machining centers Three-shift opera-tions are manned by more than 1600 employ-ees with nearly 50 percent of the workforce being veterans

The arsenalrsquos mission has evolved over the last 150 years and even more so over the last 50 Even though some of the product mix has changed its purpose remains the same to sup-port Army readiness in times of peace and war and to support the mobilization of the indus-trial base in the event of a national emergency caused by war

We have evolved through the different conflicts America has had to face For the lon-gest time RIA was looked at to be an artillery expert Our brightest minds have had a hand in every howitzer produced except for the most recent M777 Today we have four diverse product lines Artillery is still a key component of our portfolio but it joins other critical items needed for our soldiers

We break our products into four main areas Small Arms Repair Parts Armor Artil-lery and Mobile Maintenance All of these prod-uct lines play an integral role on the battlefield

Q What type of capabilities do you have under your roof that allows you to support four major product lines

A We are able to support diverse product lines because we are the only vertically integrated metal manufacturer in the Department of Defense That is a mouthful to say but what it means is that we can take raw material in at one end of the factory and have a complete product go out the other end

RIA is home to the only foundry in the Department of the Army We take raw metal and melt it then form it into a part using cast-ings From there we can machine it in one of our 1008 machining centers After that the piece goes through a heat treat plating and painting process Finally we assemble it together into a final system

That was only a few processes that we manage under one roof We have more than 17 sub-manufacturing processes that in todayrsquos manufacturing world are usually

sub-contracted out By managing all these pro-cesses we have products that are higher in qual-ity lower in price and faster on delivery times

We are also adding advance technologies to our envelope We maintain the only tita-nium casting facility in DoD We installed a titanium furnace a few years ago and are nearly ready to ramp up to full rate production for small arms and artillery parts

In the fall we are excited to bring online our new Friction Stir Welding capability which will be the largest in the world Friction Stir Welding is a solid-state joining process (meaning the metal is not melted during the process) and is used for applications where the original metal characteristics must remain unchanged as far as possible This process is primarily used on aluminum and most often on large pieces which cannot be easily heat treated post-weld to recover temper character-istics We will be working on applications such as ship decking and potentially Department of Transportation requirements such as bridge deckings

Q Earlier you talked about your purpose Today there are many private defense compa-nies that provide military equipment Where does RIArsquos role fit into equipping our sol-diers

A Arsenals and the organic industrial base is a catalyst for our military America has been able to win wars due to our military being adapt-able to ever-changing battlefield conditions Our private defense companies work hard at developing solutions for the men and women on the battlefield However there are a lot of contractual hurdles that sometimes hinder their response time

That is where we come in We are the militaryrsquos insurance policy because we are owned by the government That means the program managers can come directly to us and not issue a Federal Acquisition Regulation contract

In the past we have gotten a phone call in the middle of the night with an urgent need By 600 the next morning our engineers and machinists are already working on a solution Oftentimes within days we can have a product out of the factory and to the foxhole

Q That is pretty impressive Can you give us an example of those short turnaround times

A Two years ago we received a Quality Defi-ciency Report from TACOM Life Cycle Man-agement Command for customers reporting

that firing pins for the M252 81 mm mortar and M120M121 120 mm mortar bought com-mercially were not meeting minimum protru-sion requirements the entire spares inventory was suspended from issue

The distance a pin protrudes into the mortar tube can determine whether or not the ammunition primer will function as intended making protrusion requirements critical TACOM LCMC needed to find an alternative source for the pins quickly since over 300 backorders for the 81 mm pin and 700 for the 120 mm pin had accumulated

Upon discovering the issue which was keeping mortars from being mission-capable TACOM LCMC turned to Rock Island Arsenal to finish the job And for a process that can often take up to eight months to complete the factory was able to deliver to the field in less than one month

Q How can others work with RIA

A Many people donrsquot realize how easy it can be to work with the arsenal When work-ing government to government a contract solicitation doesnrsquot have to be done Once blueprints are shown and funding is prom-ised RIA can begin working and figure out the funding later Working with the commercial sector can be a little tricky but once direct sales orders are signed and funding has been paid work can begin Rock Island also works with small businesses through their small business office

Q Does RIA see benefits in partnering with private industry

A Yes partnering is very important to this arsenal Those who operate within the Mate-riel Enterprise know how important it is for us to engage private industry Partnering with industry provides us with manufacturing capabilities that the Armyrsquos industrial base just cannot match It makes sense from a planning standpoint as well as ensuring that we are putting taxpayerrsquos money to good use

Partnering also allows us to bring the best of both worlds together It is amazing the ideas that come together when our Army industrial base engineers and planners join forces with their private-industry counterparts

This partnering isnrsquot just limited to big businesses Small businesses also play a criti-cal role in providing equipment to soldiers down range Local small businesses have always played a critical role here at RIA Many of the stone buildings on this island

wwwMLF-kmicom8 | MLF 63

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2012 Midwest Small Business Government Contracting Symposium

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bull BI-STATE REGION INCLUDING CITIES OF MOLINE EAST MOLINE ROCK ISLAND DAVENPORT AND BETTENDORF

bull HOME OF ROCK ISLAND ARSENAL A MAJOR MILITARY INSTALLATION

bull EFFICIENT MULTIMODAL TRANSPORTATION OPTIONS

bull POWER RATES SIGNIFICANTLY LOWER THAN NATIONAL AVERAGE

bull LARGEST 300-MILE MARKET WEST OF CHICAGO

bull 428000-STRONG LABOR FORCE (AND GROWING)

About the Quad Citiesbull 40 COLLEGES AND

UNIVERSITIES WITHIN A 90-MILE RADIUS

bull FREE MARKET RESEARCH

bull AWARD-WINNING BUSINESS DEVELOPMENT TEAM

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bull FIRST POINT OF CONTACT FOR ILLINOIS AND IOWA

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Donrsquot miss this opportunity

to grow your business

with the Rock Island Arsenal

bull Identify new business opportunity

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bull Army Sustainment Command (ASC) Advance Planning Briefi ng for Industry (APBI)

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Rock Island Arsenal Open for Business

The Rock Island Arsenal Joint Manufacturing

and Technology Center (JMTC) is the only multi-purpose and vertically integrated metal manufacturer

in the Department of Defense JMTC supports

the nation with world-class products services

and logistics

Tour JMTC during the Symposium

Rock Island ArsenalCelebrating 150 Years of

Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

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8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

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Shelter - Medical - Emergency - Maintenance

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 11: MLF 6-3 (April 2012)

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2012 Midwest Small Business Government Contracting Symposium

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Service to the Nation

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

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Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

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Compatible WithSmart Grid Technology

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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dex

is pr

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 12: MLF 6-3 (April 2012)

were made from materials provided by local small businesses Small businesses can pro-vide a unique niche capability that allows for quicker manufacturing time for the end product

Q Does partnering bring workload into the arsenal and if it does what kind

A Yes it does bring workload into the factory and that is key to ensuring our skill sets stay sharp and ready for the next conflict We have multiple partnerships that add workload and capability to our arsenal

We have a partnership with BAE Systems that brings a composite armor capability to our facility The partnership calls for BAE Sys-tems to provide the technology and processes to allow the arsenal to produce composite armor utilized in military ground vehicles commercial armored vehicles soldier protec-tion equipment and other safety and surviv-ability applications RIA is the manufacturer providing floor space skilled labor and infra-structure while BAE Systems provides the technical and management oversight

Another company we partner with is a veteran-owned small business in Rock Island Ill called Mandus Group Ltd Mandus Group specializes in artillery innova-tion logistics and life cycle support We work with them to form a one-stop source for com-plete renovation and repair parts resourcing training preventative maintenance engineer-ing and modifications

Plus we have others that support research and development and training

Q So you donrsquot only partner with private companies but also those in education

A Oh yes We work with local educational institutions to provide a multitude of training opportunities for our employees Our most recent one was our Arsenal Academy Being the only vertically-integrated metal manu-facturer in DoD we manage more than 400 products from start to finish under its roof We needed to find a way to train our people to operate in the unique environment that is different than anyone else in the Army The Arsenal Academy was a way for us to provide

a formal training environment to give our people the skills they need to operate at this unique facility It is primarily geared toward first-time supervisors

We issued a contract solicitation to pro-vide the educational support to train our employees in multiple areas that are key to RIA business A consortium of three educa-tional institutions and a veteran-owned com-pany provides a 14-week course consisting of classroom training coupled with guest speak-ers and hands-on training We graduated our first 14 students last month and the feedback was outstanding We plan to continue run-ning this academy for the foreseeable future

Q RIA is located in the middle of the Missis-sippi River What makes the island and the area attractive for companies who want to partner with you

A Having 17 major manufacturing processes managed here we can fill niche needs for many companies We have a skilled workforce across the entire operation From journey-man machinists to advance engineers we

8ndash10 MAY 2012The Greater Richmond Convention Center Richmond VA

The Association of the United States Armyrsquos Institute of Land Warfare

ARMY SUSTAINMENT SYMPOSIUM AND EXPOSITIONA Professional Development Forum

FOR MORE INFORMATION CONTACT AUSA Industry Affairs 800-336-4570 ext 2416

Register online at wwwausaorg

Army Logistics Sustaining the Decisive Force mdash 2020

wwwMLF-kmicom10 | MLF 63

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

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adve

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read

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KMI c

anno

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held

resp

onsib

le fo

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repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 13: MLF 6-3 (April 2012)

can work with companies in many ways Just a few examples include using our machines to help with excess capacity or helping with technical issues to find a better way to engi-neer a system

But we are not alone The Quad Citiesrsquo advanced manufacturing industry a hallmark of the region includes innovative Fortune 500 companies and a supply chain with a strategic national significance and global reach Located in the heart of the Midwest at the crossroads of Interstate 80 and the Mis-sissippi River more than 35 million people are located within a 300-mile radius of the region We have benchmarked and worked collaboratively with other manufactures in our area to ensure we are a world-class manu-facturing facility

In addition there are more than 70 ten-ants on Rock Island Arsenal Island with the majority of them dealing with national logistics

Q With the conflicts in Southwest Asia dying down how do you maintain a trained workforce that is ready for the next battle

A We continue to market our capa-bilities to not only the Army but also to the joint services Also partner-ships are going to be more critical to our operations These partnerships allow work-load to continue to flow through this factory during times of peace It also helps us reduce our overhead which reduces our burden on the taxpayer

To ensure this arsenal is ready to answer the call for the next 150 years we cannot drastically reduce its workforce in times of peace and expect to mobilize just in time of a national emergency The skills resident in the workforce of an arsenal are perishable The expertise and knowledge that is essential to put together the industrial processes required to build complex weapon systems effectively are not easily found when you need them most but must be carefully cultivated over time

My vision is that we will once again become an original equipment manufacturer for one large and one small weapon system program We will continue to manufacture mobile maintenance systems that directly affect the readiness of the Army We will be

transformed to support repair parts across all military branches We will continue to reduce our burden on the American people through foreign military sales and commer-cial sales All in an environment of continuous improvement where we will become more agile than we are today and where we will never lose focus on people costs schedule and quality as we strive to become a model for production on demand

Q Thank you Colonel Fly for your time today Is there anything else you want to add

A Thank you for taking the time to talk to me If anyone has never seen the Rock Island Arsenal I would invite them to come to this amazing island in the middle of the Missis-sippi River and see firsthand what a national treasure this place is Thanks O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

wwwmantechcom

It takes powerful communications and logistics solutions to ensure that vital systems are ready at a momentrsquos notice At ManTech we stand side by side with our customers harnessing technology to ensure operational reliability in many countries around the world

Our customers have a critical mission and they rely on us for powerful solutions

Critical MissionPowerful Solutions

ManTech Military Forum ADindd 1 32812 231 PM

wwwMLF-kmicom MLF 63 | 11

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

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resp

onsib

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repa

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s due

to la

st-m

inut

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ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 14: MLF 6-3 (April 2012)

From radar development during World War II to computer sci-ence and the creation of the Internet DoD has always been at the cutting edge of technology research Now it is engaged in a massive energy innovation effort that already is promising revolutionary changes in the ways Americans will think about and consume energy in the years to come

This push to go ldquogreenrdquo is far more than a nod to a Democratic White House As Secretary of the Navy Ray Mabus said last year ldquoEnergy reform will make us better fighters In the end it is a matter of energy independence and it is a matter of national securityrdquo

It is also a matter of fiscal prudence DoD is the single largest energy consumer in the US accounting for about 90 percent of the federal governmentrsquos energy use Its fiscal year 2010 energy bill was $15 billion Of that $11 billion was for operations (fuel used to power ships aircraft ground vehicles and generators at forward operating bases) The remaining $4 billion was for electricity to power the 300000 buildings and fuel to operate the 200000 non-tactical vehicles on DoD installations

DoD is tackling energy reform on three fronts reducing its demand for traditional energy from commercial sources expanding its supply of renewable and alternative energy and boosting energy security Projects under each of these categories run the gamut from solar panels wind farms and building retrofits to vegetative roofing and dining facility oil re-use All are aimed at helping DoD meet various energy goals including one to produce or procure 25 percent of its total facility energy use from renewable sources by 2025 and another to reduce energy intensity 30 percent by the end of FY15 (compared to an FY03 baseline)

ldquoThe goals of the militaryrsquos green initiatives and the associated initial efforts of many talented and dedicated individuals across the ranks all point in a very positive directionrdquo observed Tom Lewis group vice president of US operations at The Louis Berger Group Inc (LBG) ldquoThis has created positive buzz and interest within the green technol-ogy industry as well as a diversity of pilots and small projects within DoD to get things startedrdquo

LBG a leader in green engineering and construction solutions for more than 50 years has more recently become active as a technology evaluation alternatives and impacts analysis and solutions integration contractor for waste management green power and energy efficiency Among its many projects LBG has lately led or supported feasibility of energy crops grown on US Army lands at six US sites completed a net zero water waste and energy environmental impact statement at Fort Bliss Texas provided advisory materials on advancements in different waste-to-energy technologies to the Air Force Civil Engineer Support Agency and others and done a pilot study in Iraq for forward operating base fuel use reduction through the re-use of dining facility waste oils

Lewis called DoD a ldquoprogressive client [that is] greatly reducing the amount of waste they generate water resources they consume and grid-produced energy they usemdashwhile at the same time increasing the use of renewable resources and green designs and technologiesrdquo

To meet its aggressive targets DoD is working not only with private companies like LBG but also with other federal agenciesmdashin particular the Department of Energy (DoE) and Environmental Protection Agency (EPA) Most recently the DoD and EPA signed a February 2012 memorandum of understanding (MOU) formalizing a partnership between the two organizations to develop and implement technologies that will help create sustainable American military bases worldwide Under the MOU the research of EPA and DoD scientists and engineers will be used to develop and demonstrate tools and technologies that will aid DoD in achieving sustainability as well as use military bases as test beds for innovative technologies that can then be shared more broadly

In a sense the agreement extends the work of the Environmen-tal Security Technology Certification Program (ESTCP) a program established in 1995 to pro-mote the transfer of innovative technologies that have successfully established proof of concept to field or production use It identifies the most promising technologies by annually soliciting for relevant project proposals then putting selected projects through rigorous demonstrations and evaluations

In late 2011 ESTCP gave the green light to 27 projectsmdashselected from 575 proposalsmdashto demon-strate emerging energy technologies on military installations in FY12 One of the selected projects is for a smart microgrid at Fort Bliss Smart microgrids allow a user to ldquointelligently control a diverse set of energy generation sources and a diverse set of loads and optimize it for efficient reliable and secure powerrdquo explained Gil Metzger intelligent microgrid solutions director for Lock-heed Martin Corp the company driving the Fort Bliss project ldquoYou are creating an energy cocoon around an end-userrsquos facilityrdquo

The microgrid concept is gaining traction as it makes a lot of sense from both a power and secu-rity standpoint The current power grid includes

minimal or no renewable energy and energy storage no intelligent distribution and uncontrolled load demands Microgrids enable those capabilities and when necessary can disconnect from the national grid network and function in lsquoisland modersquo enabling critical military func-tions to continue during commercial power disruptions

Lockheed Martinrsquos ESTCP microgrid is slated for a brigade combat team (BCT) Metzger said the microgrid should be fully operational by

WiTh ThoughTs To The long Term dod is Trying To BeCome a more effiCienT

Consumer of energyBy heaTher BaldWin

mlf CorrespondenT

tom lewis

Gil metzger

Greeningthe DoD

wwwMLF-kmicom12 | MLF 63

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

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US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

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1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

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Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 15: MLF 6-3 (April 2012)

early summer and his team will collect data for six months to a year Altogether the project will run roughly 18 months

ldquoSince this is a training facility the power goes up quite a bit during the day and down at nightrdquo said Metzger ldquoWhen they do exercises they will also exercise the microgrid and allow us to react to unexpected out-agesrdquo Metzger said Lockheed Martinrsquos tactical microgrid systems have achieved anywhere from 10 percent to 40 percent savings depending on how well facilities were optimized prior to implementation Once the Fort Bliss project proves its value ldquowersquoll be looking to expand across the entire BCT then across the entire baserdquo Metzger said

Although smart grids are still in their infancy Judy Marks presi-dent and CEO of Siemens Government Technologies Inc anticipates their usage will grow quickly ldquoDoD is just starting to do initial implementation and testing [of smart grids]rdquo said Marks ldquoThe technology exists so itrsquos not a technology challenge itrsquos a matter of people being able to understand their current energy base-line how much of that should be traditional and renewable I think wersquore going to see microgrids emerge in late 2012 and theyrsquoll come up a pretty quick curverdquo

In August 2011 Siemens Government Technologies and Boeing announced a stra-tegic alliance for the joint development and marketing of smart grid technologies The alliancersquos first contract awarded under the ESTCP program was announced on February 27 Under that contract the team will implement intelligent energy-management solutions that include integrated controls for cooling and heating systems lighting ventilation and plug loads at an unspecified DoD installation The partnership said DoD will realize up to 40 percent savings in energy costs at the installation

ldquoWhen you think that the majority of power DoD uses today comes from the commercial grid there are some reasons for this and also some reasons to function autonomously on a mircrogrid during a nat-ural disaster or other threatrdquo said Marks ldquoThatrsquos where the future lies energy efficiency through improvements in building controls chillers and boilers renewables There is much opportunity for improvementrdquo

So much opportunity in fact that a handful of installations are moving toward ldquonet zerordquo meaning they consume only as much energy or water as they produce and will eliminate solid waste to land-fills The net zero concept arose from a joint initiative formed between DoD and DoE in 2008 to address military energy use Their work led them to examine the potential for net zero energy installations Marine Corps Air Station Miramar was selected as the prototype installation for net zero energy assessment and planning Now the Department of the Navy aims to have 50 percent of its installations be net zero by 2020

In April 2011 the US Army identified six net zero pilot installa-tions each for energy water and waste The goal for all is to achieve net zero by 2020 By 2030 the Army aims to have 25 net zero installations

Fort Hunter Liggett (FHL) Calif was selected as a net zero pilot in both energy and waste FHL is the largest Army Reserve installation and the eighth largest Army installation in the nation Colonel James Suriano FHL garrison commander said his post was likely selected from the more than 100 applicants because it was already moving in a net zero direction ldquoWe are close to being net zero on waterrdquo he said ldquoNow we have a great opportunity to work with other professionals in the Army to reach our energy and waste goals in a more timely manner and with more supportrdquo

Todd Dirmeyer DPW energy manager said FHL is working closely with the National Renewable Energy Laboratory (NREL) NREL recently studied FHL energy use and is currently creating a roadmap to help guide the post to net zero by the 2020 deadline Dir-meyer expects that roadmap to be delivered in April 2012

In the meantime FHL is moving ahead with multiple energy ini-tiatives Taking advantage of its 292 average annual days of sunshine FHL is building three 1-megawatt (MW) solar panel grids The first one stretching 40 feet by 1200 feet over an existing parking lot will tie into the FHL energy grid in April 2012 Construction on a second identical solar panel grid will begin in May or June this year A third is awaiting funding Each grid will produce about 18 million kWh

annually All three together will shave about 54 million kWh from FHLrsquos annual 23 million kWh of energy consumption said Dirmeyer

Separately the post is getting ready to replace its high-wattage light fixtures with LEDs ldquoLighting is typically 20 to 40 percent of the total energy loadrdquo said Dirmeyer adding that the LEDs should decrease annual energy consumption by 24 million kWh

In FY14 Dirmeyer expects to see a further dent in con-sumption with the installation of an energy management control system (EMCS) which will automate building controls for lights HVAC and other energy consumers In October 2012 smart meters will be installed for precision measuring of

electric gas and water usage ldquoAt this time the installation does not have a baseline established for individual building electrical water and propane userdquo said Dirmeyer ldquoThe advanced smart meters will establish a baseline and give us the tools to measure our progressrdquo

For instance the smart meters will enable FHL to compare energy use at the recently overhauled legal office with unmodified identical buildings across the street Under net zero the legal office was fitted with adjustable-light solar tubes a treated concrete floor (eliminat-ing carpet cleaning energy) high-efficiency R34 siding (eliminating heating and cooling) and dual-pane high-efficiency windows ldquoNow the only energy used in that building is to power the computersrdquo said Suriano ldquoWe donrsquot have to light the building during the day And even during the winter when temperatures were below zero the building lost only one degree of heat overnightrdquo

Ultimately Dirmeyer envisions saving enough energy to export the excess to Pacific Gas amp Electric (PGampE) for credit And when the 1-MW export limit is reached ldquowe could siphon off additional energy to something else such as a hydrogen fuel cell and the EMCS could discharge the energy when the sun isnrsquot shiningrdquo Dirmeyer said ldquoWersquore still working it all out Itrsquos all newrdquo

Still FHL knows it is on the right track ldquoWe are measuring the flow coming in from PGampErdquo Suriano said ldquoand we know that even though PGampErsquos rates are going up wersquove been paying less Our gross energy use is down even though the number of people on base is going uprdquo

During his nearly 30 years in the Army Suriano said he has seen [the concept of] ldquogreenrdquo progress from something unheard of to something exotic to ldquothe new normal Therersquos great buy-inrdquo he concluded ldquoIn a convoy every tank of fuel we donrsquot have to use makes it easier to execute the mission and reduce threats to human liferdquo O

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories

at wwwmlf-kmicom

Judy marks

wwwMLF-kmicom MLF 63 | 13

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

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dex

is pr

ovid

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rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 16: MLF 6-3 (April 2012)

Vertical Carousel and Cart System

The new point of use Mini-Avenger vertical carousel and cart system provides ergonomic high density secure storage for military work areas and cells This new system saves up to 66 percent of wasted floor space while increasing operator productivity by up to two-thirds by eliminating wasted walking and searching time

The Mini-Avenger is portable and designed to move through facilities standard halls and doorways to the point of use The unit comes with roller ball bearing caster wheels that allow minimal effort to move quickly and easily Units can be dedicated to a work station or area or rotated for replenishment kitting consolidation buffer or pick and pass applications

Inventory and items for military are stored on carriers or shelves that rotate on an oval track vertically and are delivered to an ergonomically located work counter Every shelf can be configured uniquely to meet specific inventory and application requirements A myriad of totes trays containers and boxes can be utilized to optimize virtually any application An optional uninterrupted power supply allows for mobile software usage

The system system is available with integrated software and pick to light systems to assure 999+ percent levels of accuracy picking speed and increased productivity Likewise folding the work counter when placed up seals the unit for maximum inventory security and protection By using the locking work counter and password soft-ware access inventory and items can be tracked and monitored for improved management visibility This helps in reducing inventory costs by eliminating misplaced or stolen items

SUPPLY CHAIN

Tank Rack ModulesDRS Technologies Inc

a Finmeccanica Company announced its Sustainment Systems division has been awarded a $687 million contract for tank rack modules for the US Armyrsquos modular fuel system (MFS)

This recent order from the Armyrsquos Program Manager Petroleum and Water Systems at the TACOM Lifecycle Management Command is the full rate produc-tion contract stemming from DRSrsquo successful design development and qualification of the MFS

DRSrsquo MFS is a new highly mobile tactical fuel storage and distribution system to support the warfighter in the field Each tank

rack module stores 2500 gallons of fuel and is transportable as an ISO compatible system directly to the field

ldquoOne of our most important missions is to sustain our ground troops with flexible responsive liquid logistics solutions where and when they need it The modular fuel system significantly increases the deployability and efficiency of the Armyrsquos fuel storage and delivery systemsrdquo said Joseph Matteoni vice president and general manager of DRS Sustainment Systems Inc ldquoWe are proud to play a central role in our militaryrsquos ongoing efforts to improve its logistics and sustain-ment capabilitiesrdquo

Improving the FMTV

Oshkosh Defense a divi-sion of Oshkosh Corporation is continuing its commitment to further improve protection and mobility for warfighters on the changing battlefield with new enhancements for the US Army and National Guardrsquos Family of Medium Tactical Vehicles (FMTV) The result for soldiers is better underbody protection and notice-ably improved vehicle performance and ride quality on rough terrain

Named the FMTV Enhanced Protection and Mobility Demonstrator (EPMD) the proto-type vehicle utilizes the Oshkosh TAK-4 independent suspen-sion system and a custom-fitted Oshkosh Underbody Improvement Kit (UIK) for previously unrealized levels of protection and mobility

ldquoWersquore drawing on two Oshkosh Defense core competen-ciesmdashsurvivability and off-road mobilitymdashto give the FMTV plat-

form improved capabilities on the battlefield against evolving threats and severe terrainrdquo said Mike Ivy vice president and general manager of Army Programs for Oshkosh Defense ldquoThese upgrades build on that success and give soldiers a better protected more mobile family of vehiclesrdquo

The FMTV EPMD uses an Oshkosh-designed UIK to provide protection beyond the platformrsquos Long-Term Armor Strategy-compliant armor suite Oshkosh is in the process of delivering more than 8000 MRAP all-terrain vehicle UIKs which are protecting warfighters in Afghanistan today as well as more than 400 UIKs for the Armyrsquos Heavy Expanded Mobility Tactical Truck (HEMTT) A4 Oshkosh UIKs are designed for light medium heavy and MRAP vehicles in the ongoing battle against increasingly dangerous IEDs and roadside bombs

wwwMLF-kmicom14 | MLF 63

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

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dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 17: MLF 6-3 (April 2012)

Focus Integrator

Rear Adm (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial OperationsUS Navy Naval Air Systems Command

US NAvy NAvAL AIR SyStemS COmmANd

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 18: MLF 6-3 (April 2012)

Rear Admiral (select) Jaynes is serving as the assistant commander for logistics and industrial operations Naval Air Systems Command She is responsible for overseeing logistics support efforts for both fielded and developmental aviation systems

Jaynes graduated from Indiana University of Pennsylvania in 1979 with a BS degree in mathematics education followed by a masterrsquos degree in mathematics in 1982 She was commissioned in 1983 via the Officer Candidate School in Newport RI and designated an aeronauti-cal engineering (maintenance) duty officer in 1985 She was designated an Acquisition Professional Community member in 1996 and received an MBA from Norwich University in 2008 Jaynes also completed the Naval War College Command and Staff (non-resident) program in 1995 and earned a Systems Engineering Certification from California Institute of Technology Industrial Relations Center in 1999

Operational tours include Training Squadron Eighty-Six (VT-86) Patrol Squadron Five (VP-5) Aircraft Intermediate Maintenance Department commander Helicopter Wings Atlantic Aircraft Intermedi-ate Maintenance Department and officer-in-charge commander Strike Fighter Wing Pacific Aircraft Intermediate Maintenance Detachment

Jaynesrsquo acquisition tours include Naval Aviation Engineering Ser-vice Unit Deputy Assistant Program Manager Systems Engineering for PMA-290 P-3 and EP-3 Program Office FA-18 Program Integra-tor Defense Contract Management Command Northrop Grumman assistant program manager Logistics for PMA-265 FA-18 amp EA-18G Program Office and PMA-265 FA-18 deputy program manager fleet support She assumed command of PMA-202 Aircrew Systems in June 2006 She assumed command of PMA-213 Naval Air Traffic Manage-ment Systems in 2007 In July 2011 she reported as NAVAIR assistant commander for logistics and industrial operations

Her awards include the Legion of Merit (two) Defense Meritori-ous Service Medal Meritorious Service Medal (four) Navy and Marine Corps Commendation Medal Navy and Marine Corps Achievement Medal National Defense Service Medal (with Service Star) Global War on Terrorism Service Medal and numerous unit awards She is autho-rized to wear the Professional Aviation Maintenance Officer Warfare insignia

Q Could you start off with an overview of the size of the command where the various elements are located and some of its budget high points

A Right now NAVAIR has roughly 36000 personnel a combination of civilian military and contractor employees Our logistics and industrial

operations competency has about 3775 employees located at the pri-mary NAVAIR and Fleet Readiness Center sites in Patuxent River Md Lakehurst NJ Orlando and Jacksonville Fla China Lake San Diego and Point Mugu Calif and Cherry Point NC

Our team has a two-part mission The first part is to provide the NAE [Naval Aviation Enterprise] with the resources they need to develop plan and integrate logistics support considerations into their weapon system designs Second we establish and maintain integrated logistics support capable of sustaining fleet operations and mainte-nance throughout the life cycle of those weapon systems and related equipment

As for budget wersquore responsible for over $38 billion of appropriated funds every year Itrsquos important to me that we remain diligent about prudent use of these dollars for both the taxpayer and the Navy As for the high points of that budget therersquos APN [aircraft procurement Navy] We have $12 billion for the naval aviation spares program which provides initial spares and repair parts needed to support NAE-sponsored Navy and Marine Corps aircraft procurement and operating programs and $15 billion in OMN [operations and maintenance Navy] funds for aircraft depot maintenance and aviation logistics

We also have over $700 million in OMN funds to provide engineer-ing and logistics support for the Navy and Marine Corps operational inventory of aircraft associated support equipment automatic test equipment and aircraft systems to train aviation maintenance person-nel at the O and I maintenance levels and to maintain and manage

Rear Admiral (Select) Cindy L ldquoCJrdquo Jaynes

Assistant Commander Logistics and Industrial Operations

US Navy Naval Air Systems Command

Focus IntegratorDeveloping Planning and Integrating Logistics Support Considerations

QampAQampAUS Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 1

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

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tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 19: MLF 6-3 (April 2012)

technical document databases that support our aeronautical weapons and equipment throughout their life cycle

We have over $300 million in OMN funds for the weapons maintenance program including air-launched missile rework and air-launched ordnance rework and over $140 million in OMNR [opera-tions and maintenance Navy Reserve] funds to provide airframes and engines rework and emergent repairs for reserves aircraft

Q What will you do in 2012 to increase the efficiencies of NAVAIR logistics and industrial operations

A Our goal in 2012 is to better align our operations with our custom-ers think in terms of total programmdashnot just the logistics piecemdashand increase our speed across the board If we change the way we think and act in those three areas we will become more efficient and more valu-able to our customers

In terms of alignment an example would be the NAE and our role in supporting them AIR 60 needs to be proactive and responsive to the NAE and focus our metrics analysis and activity on moving the needles that will benefit the NAE Also by understanding all aspects of a program such as engineering contracts test etc wersquore better posi-tioned to make better decisions on the logistics side of the house and understand how we can positively impact the program

Q What are the key elements of your commanderrsquos guidance

A My commanderrsquos guidance is based on the priorities and tenets set forth by the CNO I have three primary focus areasmdashcurrent readiness future readiness and people These three areas form the foundation of the support that we provide our customers

Letrsquos start with current readiness Here the focus is on program office success We can achieve success by aligning better with war-fighter focus teams and outside organizations promoting transparent engagement with program teams and adequately staffing those pro-gram teams with qualified logisticians

For future readiness the main goal is to improve the acquisition process We can do this by beginning sustainment planning pre-mile-stone A and continuing throughout the acquisition life cycle driving logistics relevancy into the current systems engineering process The goal is to use processes that promote analytical thinking which effec-tively drives decision-making based on known and acceptable risks

And last but certainly not least is the focus we place on our people We must continue to improve the effectiveness of our valued workforce We will do this by targeting training which will drive the expansion and diversification of our workforce We will develop stan-dardized work and processes to improve efficiency and wersquoll also focus on their welfare and morale We want to help our people work smarter not harder

Q When new aircraft programs are being formulated does Logistics and Industrial Operations have a seat at the table to ensure that total ownership considerations are in the planning from the outset How important are those considerations when you are the one now at the maintenance and sustainment part of the chain

A Logistics and Industrial Operations absolutely owns a seat at the table from day one Itrsquos our responsibility to ensure fielding and sustainment costs are thoroughly vetted throughout the early stages

of development and that our maintenance strategy is supportable and cost-effective Once the design is set it becomes more difficult to drive costs down so we have to be there from the beginning You only have one chance to truly influence the programrsquos supportability designmdashit is of the utmost importance to me to get that right right away The Navy will have to live with those decisions for years after I am gone

Q Much of asset visibility and management is IT driven Does the command have a defined IT roadmap Does the current IT network allow the optimum level of communication and information sharing across your supply chain

A NAVAIR has tools in place today that allow us to accurately track the location and condition of all of our assets The capability in place today ensures that we successfully and effectively support fleet operations That being said we are looking at opportunities to transition away from some of the current legacy systems Specifically we are looking at the opportunity to leverage the capability of Navy ERP to support total asset visibility which would support the asset location and condi-tion requirements but add the benefit of full integration with financial value and reporting We have already begun the process of transition-ing some of the material at our Lakehurst site

In addition we are working with NAVSEA on a joint effort to transi-tion material held at a common site Wersquoll be applying lessons learned from these efforts to further define our overall material transition plan

Q What is the relationship between NAVAIR logistics and the Defense Logistics Agency Do they now or do you expect them in the future to become more involved in your inventory and parts management

A We have a strong relationship and Irsquom confident it will grow even stronger in the future as DLA takes on a more expanded role in naval aviation readinessmdashand yes theyrsquoll be very well ingrained in our inven-tory and parts management as we move forward

BRAC 2005 directed the transition of supply support at the fleet readiness centers [FRCs] to DLA from the Navy-owned fleet and indus-trial supply centers Instead of DLA being responsible for managing wholesale inventories only they are also responsible for managing retail inventories in the direct support of FRCs and naval weapon systems and acquisition of depot level repairables Additionally DLA is prototyping processes to develop of joint service performance based logistic contracts that will impact the NAE As DLA becomes the NAErsquos key partner in naval aviation readiness it is essential that we operate from a position of mutual trust To that end we are strengthening our understanding of each otherrsquos requirements and aligning our joint processes

In preparation for this future the NAE and DLA are partnering on a collaboration project designed to improve readiness of naval aircraft by focusing on forecasting and supportability Traditionally DLA pro-curement and stocking decisions were based on historical demand The goal of forecasting is for the NAE to communicate changes in histori-cal demands with adequate lead-time to enable DLA to purchase and deliver that material when needed The ability to communicate pro-jected changes in historical demands is essential for long-term success

Forecasting is a process that allows the NAE and DLA to pre-dict future requirements that are outside procurement lead-time Supportability is a process that allows the NAE and DLA to expedite near-term requirements that are within procurement lead-time DLA

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom2 | MLF 63 | US Navy Naval Air Systems Command

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 20: MLF 6-3 (April 2012)

AAI Logistics amp Technical Servicesrsquo performance based logistics (PBL) model is ef ciency-driving and affordable with a proven history of success Just look at our EA-6B PBL in partnership with the US Navy Wersquove delivered 100 percent availability for more than 40 months straight and improved asset reliability by 30 percent

Instead of simply farming work out to additional maintainers our core enabling philosophy helps our depot partners do even more of what they do best We streamline processes manage the supply chain invest in capital improvements and maintain depot equipment We do the same for your forward supply points to keep their shelves full and maintain balance between forward and depot repair demand

Our proven PBL model is adaptable to any platform Contact AAI Logistics amp Technical Services to learn more at 800-655-3964 or RSC_AAIRegaaitextroncom

aaicorpcom

copy 2012 AAI Corporation All rights reserved AAI Logistics amp Technical Services is an operating unit of Textron Systems a Textron Inc (NYSE TXT) company AAI and design is a registered trademark of AAI Corporation Photo courtesy US Navy

DO WHAT YOU DO BEST - WErsquoVE GOT THE RESTWE VE GOT THE REST

LTS MLF ad_85x11_0312iindd 1 32712 859 AM

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 21: MLF 6-3 (April 2012)

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom4 | MLF 63 | US Navy Naval Air Systems Command

US Navy NavaL aIr SyStemS CommaND

Kalmen LeikachDeputy Commander

Cmd Master Chief Bret A Joel

Vice Adm David Architzel

Commander

NAVAIR SYSCOM

Rear Adm Steven R Eastburg Vice Commander

Rear Adm William Shannon

Unmanned Aviationamp Strike Weapons

Vice Adm David Venlet

F-35 Lightning II Program

Rear AdmPaul Grosklags

Air ASW Assault amp Special Mission

Programs

Rear Adm Donald GaddisTactical Aircraft

Programs

PROgRAM ExECutIVE OffICERS

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

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Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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is pr

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 22: MLF 6-3 (April 2012)

1 Nor

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom US Navy Naval Air Systems Command | MLF 63 | 5

LOgIStICS amp INduStRIAL OPERAtIONS

Toni MeierDirector Logistics

Management Integration Department

Dennis WestDirector

Industrial Operations

Dan NegaDirector Aviation

Readiness amp Resource Analysis

Department

Capt JC HardingExecutive Director

Tracy MoranDirector

Industrial amp Logistics Maintenance PlanningSustainment

Department

Garry NewtonDeputy Assistant

Commander

Rear Adm Jeff Penfield Commander

Fleet Readiness Centers

Rear Adm (select) CJ Jaynes

Assistant Commander for Logistics amp Industrial

Operations

Gary KurtzAssistant CommanderCorporate Operations

amp Total Force

Keith Sanders Acquisition Executive Program Management

Rear Adm Mat Winter

Assistant Commander Test amp Evaluation Commander NAWC Weapons Division

Diane BaldersonAssistant Commander

Contracts

Rear Adm Randy Mahr Assistant Commander

Research amp Engineering Commander

Aircraft Division

NAVAIR COMPEtENCIES

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

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resp

onsib

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repa

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to la

st-m

inut

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ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 23: MLF 6-3 (April 2012)

is fairly successful at supporting critical near-term requirements but there are instances when required material is not available

The relationship between NAVAIR logistics and DLA is strong today and will grow stronger in the future as DLA takes on a more expanded role in naval aviation readiness I fully expect the collaboration team to improve readiness while remaining good stewards of our defense dol-lars This is a win-win for the NAE and DLA

Q Staying with the issue of parts how concerned are you with the problem of counterfeit parts What is your process to ensure that they remain outside your supply chain

A Wersquore very concerned about this and how they affect our business Wersquore looking into how to mitigate that problem and prevent them from becoming more of an issue

Q What is your role in reliability centered maintenance Have there been measurable benefits to this maintenance philosophy

A We use reliability centered maintenance [RCM] extensively to deter-mine and modify preventive maintenance tasks and intervals and to recommend other actions to mitigate failure effects RCM programs exist within NAVAIR for aircraft engines and support equipment RCM has shown to have a beneficial impactmdashwersquove seen reductions in maintenance man hours and life cycle cost avoidances for scheduled maintenance increased availability less out-of-service time and all while maintaining safe operations

Q What educational and training regimes do you have to develop and mature a professional NAVAIR logistician

A Our logistics professionals are instrumental to our AIR 60 team so to further hone their knowledge skills and abilities we are establishing the Logistics University or what wersquore calling LOG U Right now itrsquos in its formative stagemdashour senior leadership is shaping LOG Ursquos frame-work and curriculum which will define a clear career path and provide integrated in-house opportunities that target their unique needs

LOG U really benefits all of NAVAIR and the fleetmdashin addition to facilitating professional development in our competency wersquore nurtur-ing the next generation of our 60 leadership which will allow us to reap the benefits of a continuously improving organization while pro-viding the fleet with the most effective and efficient logistical support to meet their daily operations and maintenance needs

Q Any closing thoughts

A In this era of continuous improvement and overwhelming budget constraints providing the best possible services to our customers is more than a nice-to-domdashitrsquos an absolute must-to-do We must make it our goal to not simply meet customer needs and expectations but to exceed them whenever possible and we can do this by re-energizing our efforts in focused efficiency

I think what we discussed here today represents how wersquore posi-tioning ourselves for the future how wersquore going to be more successful in the future for the NAE O

Top Critical Contracts

Reset Project Organizational Level Maintenance for US Marine Corps Aviationbull $3882607612firmfixed-pricecontractbull PerformanceperiodFebruary2009ndashFebruary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforAH-1WUH-1NCH-53DECH-46Elots3and4

bull AwardedtoPKLServiceInc

Depot Level Maintenancebull $3696198663cost-plus-fixed-feecontractbull PerformanceperiodAugust2010ndashJuly2015bull ProvidesupportservicesrequiredbytheFleet

ReadinessCenterSouthwestNorthIslandCaliforniatoaugmentthegovernmentworkforceperformingDepotLevelMaintenance(DLM)workonaircraftandreworkofassociatedcomponentsmaterialsIncludingincorporationsofmodificationsinservicerepairsandallothercategoriesofserviceassociatedwithaircraftDLManditsplanninginaccordancewiththePerformanceWorkStatementandtheQualityAssuranceSurveillancePlan

bull AwardedtoAffordableEngineeringServicesLLC

NALDADeckplatebull $1101394313cost-plus-fixed-feecontractbull PerformanceperiodDecember2008ndash

December2013bull Supportsystemsacquisitionandlifecyclesupport

servicesforalltheprogramscurrentlyunderthelogisticsITsystemswithinAviationReadinessampResourceAnalysisDepartment

bull AwardedtoSpaldingConsulting

Reset Project Organizational Level Maintenance for US Marine Corps Aviation

bull $1053922536firmfixed-pricecontractbull PerformanceperiodJanuary2009ndashJanuary2014bull Provideresetservicestoincludepresetin-theater

sustainmentreconstitutionandscheduledunscheduledmaintenanceforFA-18A+CDAV-8B

EA-6BandKC-130JLots1and2

Awarded to Defense Support Services LLC

bull FA-18A-FandEA-18GILSbull $736076697cost-plus-fixed-feecontractbull PerformanceperiodJune2006ndashJune2010bull Programmanagementadministrativesupport

logisticssupporttravelmaterialandNMCIbull AwardedtoAnteonCorporationchangedtoGeneral

DynamicsInformationTechnologyInc

Organizational-Level Electronic Warfare Test Program Set (OEWTPS)

bull $519602100cost-plus-fixed-feecontractbull PerformanceperiodMarch2007ndashMarch2012bull Designdevelopmentintegrationproductionand

deliveryofOEWTPSfortheALQ-211usedwiththeUSM-670testsetprovidetheOEWTPSincludingtheAntennaCouplerInterfaceGroup(ACIG)fortheCV-22withanoptiontodeveloptheACIGfortheMH-47GandtheMH-60MandincludeproductionoftheCV-22MH-47GandMH-60MACIG

bull AwardedtoAAICorp

All Weapons Information System (AWIS)

bull $413238232cost-plus-fixed-feecontractbull PerformanceperiodMay2011ndashApril2016bull Providedesigndevelopmentenhancementand

maintenanceinformationtechnologyservicesfortheAWISsoftwareapplicationmodules

bull AwardedtoEngineeringManagementConceptsInc

MH-60R

bull $306020000firmfixed-pricecontractbull PerformanceperiodNovember2010ndash

November2011bull Depotlevelmanualupdatesandnewdevelopment

bull AwardedtoSikorskyAircraftCorporation O

NAVAIRrsquos Logistics and Industrial Operations provided information on recent high-dollar contracts including contract amount performance period a brief work synopsis and the company awarded the contract

US Navy NavaL aIr SyStemS CommaND

wwwMLF-kmicom6 | MLF 63 | US Navy Naval Air Systems Command

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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e to

our

read

ers

KMI c

anno

t be

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resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 24: MLF 6-3 (April 2012)

Compiled by KMi Media Group staffSUPPLY CHAIN

Robotic USV Refueling

Engineers from the NRL Spacecraft Engineering Department (SED) have successfully demonstrated the robotic fluids transfer from a stationary platform to an unmanned surface vehicle (USV) in wave heights greater than 3 feet The Rapid Autonomous Fuel Transfer (RAFT) project exhibits the ability to track the motion of a Sea Fox naval vessel safely emplace a magnetic refueling fitting to an on-board refueling receptacle and successfully complete fluids transfer

ldquoRefueling a USV at sea particularly in adverse weather or in high sea states can prove difficult and often dangerousrdquo said Dr Glen Henshaw Attitude Control Section SED Control Systems Branch ldquoTransferring our extensive knowledge and proven success of robotic spacecraft servicing can prove equally successful in reducing risks at seardquo

Providing the host ship the capability to refuel USVs without the need to bring them aboard ship enhances mission efficiency and reduces host ship exposure This works to improve the effectiveness of naval USV missions and decrease risks to personnel and potential damage to vessels and equip-ment

Funded by the Defense Advanced Research Projects Agency (DARPA) the RAFT project teamed NRL with Clemson University Science Applications International Corporation (SAIC) and Space and Naval Warfare Systems Command (SPAWAR) NRL was the lead robotics integrator and designed the robotics system

Further robotic transfer tests will possibly include land-based autonomous HMMWV applications without the need to stop driving and on-air unmanned aerial vehicle refueling

Better ProtectionThe new Pelican HardBack Series of virtually indestructible cases offers

ultimate protection in any situationmdashon the basersquos medical station while traveling personal use or as you perform in active duty The HardBack Series includes

bull Pelican 1055 Protects tablet-type computers and e-readers up to 8 inches including the Kindle Fire Nook Color Galaxy Tab and more

bull Pelican 1065 Protect tablet-type computers up to 10 inches including such devices as the iPad iPad 2 and the Motorola Xoom

bull Pelican i1075 Protects and organizes the iPad or iPad 2 Apple Bluetooth wireless keyboard power adapter and download cables includes an integrated easel to allow for hands-free viewing

bull Pelican 1085 and Pelican 1095 Features security padlock slots shoulder straps and Pick N Pluck foam Pelican 1085 protects computers up to 14 inches Pelican 1095 protects computers up to 15 inches

Falcon Electric Inc recently announced that it added a ruggedized wide temperature (-30C to 63C) extended runtime battery bank option to its popular SSG and SSG-RP UPS products The wide-tempera-ture-rated batteries provide long back-up runtimes for protecting connected computers and instrumentation operating in harsh envi-ronments during a prolonged power outage The new battery pack gives users over 10 times the battery runtime compared to Falconrsquos standard 2U extended battery pack option

The new battery bank carries a UL listing when powering Falconrsquos unique UL-listed SSG25KRP-1 UL is pending for the remaining models in the SSG and SSG-RP Series wide-temperature-rated UPS product line The SSGB-1S40-5U 40AH battery bank is a rugged battery option that consists of eight deep cycle valve regulated

lead-acid maintenance-free 40 amp hour (AH) batteries and two internal one amp chargers The batteries and chargers are housed in a sleek rack mount enclosure which takes only 5U (875 inches) of vertical rack space

The battery banks may be daisy-chained to provide exceptionally long battery runtimes and can be easily added in the field after the SSG units are installed and in service In order to ensure a reasonable recharge time Falcon offers an optional charger system housed in a separate 2U rack enclosure Each 2U rackmount charger module can support up to two 4 AH chargers

The 40 amp hour batteries join other options for the industrial-grade SSG UPSs including an SNMPHTTP agent board frequency converter and ICB conformal coating

Uninterruptible Power Supply

wwwMLF-kmicom MLF 63 | 15

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

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KMI c

anno

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held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 25: MLF 6-3 (April 2012)

Rear Admiral Mark Heinrich became commander Naval Sup-ply Systems Command (NAVSUP) and 46th Chief of Supply Corps on July 22 2011 Previously he served as commander NAVSUP Global Logistics Support headquartered in San Diego Calif

Heinrichrsquos additional flag officer assignments include exten-sive joint experience He served as director Logistics Operations and Readiness (J-34) for the Defense Logistics Agency (DLA) headquartered at Fort Belvoir Va He deployed to Kuwait from June to December 2008 as director of the United States Central Command Deployment and Distribution Operations Center at Camp Arifjan where he applied deployment and distribution expertise to enable the planning and execution of joint and com-bined force military operations His first flag officer assignment was as commander Defense Supply Center Richmond Va the lead supply center for aviation within DLA The center is now known as DLA Aviation

Heinrich is a native of southern California He was commis-sioned in the Navy Supply Corps following graduation from the Naval Academy in May 1979 with a Bachelor of Science degree in engineering He also holds masterrsquos degrees in business admin-istration and petroleum management from the University of Kansas He is also a graduate of the Kellogg Graduate School of Management Advanced Executive Program He is a member of the Defense Acquisition Corps

Heinrichrsquos sea tours included duties as assistant supply officer of USS Kinkaid (DD 965) and supply officer of USS Gridley (CG 21) and USS Constellation (CV 64)

His additional shore assignments included serving as force supply officer on the staff of Commander Naval Surface Forces commanding officer of the Naval Petroleum Office supply officer of Naval Air Station Whidbey Island executive assistant to the commander Naval Information Systems Management Center and special assistant for pollution prevention and compliance in the Office of the Assistant Secretary of the Navy (Installations and Environment)

His personal decorations include two Defense Superior Service Medals two Legions of Merit a Defense Meritorious Service Medal and various other awards He is a qualified Surface Warfare Sup-ply Corps officer and a Naval aviation supply officer

Rear Admiral Heinrich was interviewed by KMI Media Group Editor-in-Chief Jeff McKaughan

Q In terms of the budget what are you doing to ensure yoursquore applying your resources to the maximum in terms of delivering your requirements in the current budgetary environment

A The harsh budget environment makes it the commanderrsquos busi-ness to know where the taxpayersrsquo money gets spent You can no longer assume that good people are making good decisions Yes thatrsquos happening but itrsquos important to know where your dollars are being spent Work has to be done to shape the budget You can delegate financial management but never abdicate your funding execution The budget environment requires it

Now that the commanderrsquos intent is clear NAVSUP is taking multiple steps to make ourselves more efficient and more effective

Wersquore leveraging our experience in Lean Six Sigma and con-tinuous process improvement Green belts black belts and master black belts are deploying to look at our most challenging processes and take out costs Thatrsquos a top priority

Wersquore leveraging new technology Wersquove made a huge invest-ment in Navy enterprise resource planning [ERP] software through-out NAVSUP Navy ERP integrates our financial and material accounting systems creating a common Navywide view This SAP system is coming on strong It will provide us greater transparency into our supply system and enable us to improve our asset utiliza-tion further combine purchasing actions and improve collabora-tionmdashboth internally and with our DoD and industry partners By the end of this year we should have all our ERP supply system

Rear Admiral Mark F HeinrichCommander

Naval Supply Systems Command and Chief of Supply Corps

Global SupplierTaking Steps to be More Efficient and More Effective

QampAQampA

wwwMLF-kmicom16 | MLF 63

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 26: MLF 6-3 (April 2012)

deployments complete including an additional to 4000 users this year This will save millions of dollars Navywide in inventory and IT costs as we work to reduce and then eliminate our dependence on old FORTRAN- and COBOL-based systems that have been around since the 1960s We are confident that Navy ERP will give us the inventory management and supply system excellence that we can use to increase inventory velocity hellip and eventually reduce our total inventory costs

We are also working on organizational change to be more effi-cient and effective For example we have two fleet-focused organiza-tions The first is the NAVSUP Global Logistics Support Command That command is in San Diego with a rear admiral and a senior executive service member as the deputy The second is the NAVSUP Logistics Operations Center headquartered in Norfolk commanded by a Navy captain We decided we could find efficiencies by combin-ing the two organizations which we will do this year The efficiencies we gain include and improve fleet focus and it becomes easier for people to navigate the NAVSUP organization Essentially wersquoll have one lsquofront officersquo providing a single face to the customer hellip and cre-ating increased agility

We are changing the way we think about our products Irsquove talked about continuous process improvement leveraging SAP and organization constructmdashmy last and most important focus is cul-ture Culturally we havenrsquot really thought about ourselves from a product and service perspective With every product and service that we offer to the fleet wersquore working hard to understand the costs Our business lines include contracting transportation supply manage-ment hazardous material warehousing postal and everything else we provide Wersquore offering the opportunity for everyone to under-stand how every dollar gets spent when it gets spent That even goes for our general administrative costs Wersquore targeting them and once we understand how the dollar gets spent wersquore driving costs down

Q In regards to the culture and your workforcemdashis your workforce a stable workforce that yoursquore having to adjust to the culture or are you looking at a younger workforce coming in to reinvigorate that

A I have thought a lot about our workforce On the contracting side our acquisition workforce is young and coming on strong When you look at some of our key contracting teams like the Fleet Logistics Center Norfolkrsquos contracting team in Philadelphia about 40 percent are people who have less than five years of service So wersquove had a youth movement and I am proud of our contracting officers some of the best-trained in the Navy These overachievers are customer-focused and are some of the best contracting officers in the Navy They have lots of senior mentors and they will be with us for the next 20 years which makes us really excited about the future of contracting

Within the practice of supply management we have continued to refresh our workforce Because the challenge of transitioning from an old COBOL or FORTRAN-based system to a new state-of-the-art SAP-based system we need people who are willing to lead this cul-tural change We have a tremendous team of both young people and seasoned employees At our HQ we are re-engineering our position descriptions to emphasize ERP the importance of jointness the importance of partnering with DLA with TRANSCOM and tying in the importance of understanding cross-SYSCOM operations What we do heremdashcontracting budgeting all of the different business cross-cutting operationsmdashis the same thing people do at NAVSEA

NAVAIR and some of the other SYSCOMS Partnering with these different groups is key

Q Can you go into just a little bit more detail about the organi-zational change Are there any more structural changes that you think the supply corps should to go through or that yoursquore plan-ning to take them through

A To address that I need to start with products and services Transportation was one of our products and services that existed in two commands so it was sometimes challenging to visualize our transportation processes when we had two commands responsible for it As we streamline our transportation processes wersquore going to provide a better product The planning work that was done in one organization the NAVSUP Logistics Operation Center often affected the operations and actions of our NAVSUP fleet logistics centers We have shortened the flash-to-bang efforts if you will to get the plannersrsquo plans translated into operational actions

All of that will take costs out and increase agility For a smaller organization with the need for quickness agility is absolutely key So Irsquom very proud of that Fleet focus is something that I really champion and I will continue to look at the organization on a regular basis to ensure that we are fleet-focused

I want to go a couple of steps further and talk about naval logistics integration Our naval logistics integration effort being led by the 4s of the Navy the Marine Corps and the Coast Guard will integrate supply systems in those services This effort is sup-porting the Marines when they go float on our amphibious assault ships supporting the Coast Guard when theyrsquore operating in the proximity of our ships and itrsquos supporting the Navy when wersquore operating in places like the Great Lakes which have robust Coast Guard infrastructure

As an example the Navy builds our littoral combat ships in Marinette Wis then we take them through the Great Lakes Nobody can say therersquos a better organization than the Coast Guard that knows how to operate in the Great Lakes so our collaboration with the Coast Guard in the Great Lakes makes perfect sense The Coast Guard has been operating in the Arctic for years So if it comes to the Navy operating in the Arctic from a logistics stand-point the Coast Guard knows how to do that and we can leverage their experience When the Coast Guard sends a cutter overseas nobody has a better husbanding support contracts in a foreign port than the US Navy Itrsquos a great way to take three sea services and start to build on logistics processes to take cost out and improve support to the warfighter

Q Letrsquos talk about your command here Naval Supply Systems Command and how yoursquore also chief of the Supply Corps How are the organizations different and what mission does each serve

A They are different entities The Supply Corps is not a command but a community Irsquom the community manager and the leader of a group of more than 3700 logisticians who wear the uniformmdashthe cloth of our nationmdashand are committed to supporting the war-fighter every day

The Naval Supply Systems Command is an Echelon II organiza-tion within the US Navy that has very much the same missionmdashto support the Navy and joint warfighters with everything they need to be effective We are starting to blend the cultures of the Supply Corps

wwwMLF-kmicom MLF 63 | 17

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

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Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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is pr

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 27: MLF 6-3 (April 2012)

and the cultures of the Naval Supply Systems Command together through common mission statements and similar visions It is true that we have Supply Corps officers out on the pointy end serving on ships on the line serving in expeditionary environments but all of those Supply Corps officers out there should have confidence knowing that the Supply Corps officers and civilian logisticians are committed to supporting them with everything they need to be effective and successful

I want to talk about the breadth and depth of the Supply Corps You have to go back to probably the time of Eugene Grinstead who was a salty three-star admiral was also a former frogman in WWII turned supply officer and ended up leading the Defense Logistics Agency [DLA] from 1980-1984 This was before joint logistics was cool and he said you canrsquot beat DLA so join rsquoem and lead rsquoem

Look at the contributions of the Supply Corps across the joint logistics enterprise now Wersquore leaders with our joint national partners DLA and US Transportation Command We understand how to leverage DLA and USTRANSCOM Wersquove had a supply offi-cer in USTRANSCOM serving in a leadership position in the past and wersquoll have another flag officer reporting to USTRANSCOM this summer The contribution of the Supply Corps ismdashand this is most importantmdashto take naval logistics operations and solutions and bring them to DLA USTRANSCOM the Joint Staff and the COCOMs Then we take what we learn at these COCOMs and these defense agencies and joint staffs bring them back to the Navy and we further enrich the Navy

The Supply Corps is the vehicle for the cross-pollination between joint logistics cultures and Navy logistics cultures and we all benefit greatly from it

Q Letrsquos talk about biofuels The Navy seems to be in the lead as far as participating in biofuel usage and leading that effort What is your commandrsquos role in that What part do you play in acquir-ing using holding storage and things of that nature

A I am proud to have recently visited the University of Kansas where we train the Navy Supply Corpsrsquo energy professionals The program at the University of Kansas is a combination of classes in the school of engineering and the school of business

We also have an internship program that we use to train junior fuels officers We assign them to our Navy deep water fuel terminals and they learn the idealmdashthe process of bulk petroleum support to our ships and aircraft

Our active and retired supply officers are present at DLA Energy where DoDrsquos petroleum contracts are managed to support our warf-ighters As a result the Supply Corps is perhaps the most important community of professional energy managers within the Navy

Secretary Mabus has defined his strategy and we have been the ones who have been executing Wersquove collaborated with DLA to execute contracts to buy 350000 gallons of alternative diesel fuel and 100000 gallons of alternative jet fuel Those fuels will be delivered in the Northwest loaded on a Strike group and wersquoll use them to dem-onstrate Secretary Mabusrsquocommitment to alternative fuels this sum-mer when we demonstrate our ability to deploy a Green Strike group

Q Along with biofuel lsquogoing greenrsquo is the catch phrase Going green is never inexpensive the first steps are usually expensive What is your command doing to take those steps and keep in mind the budget limitations Where do those two things sync up

A I know firsthand our commitment to the environment Our environmental practice exists to ensure our Navyrsquos ability to operate and train effectively That is why we have an incredible environmental practice and why wersquore so successful because we understand why wersquore there

I personally served as a special assistant to the assistant for pollution prevention and compliance in the assistant secretary of the Navyrsquos office so I know that This commitment goes far beyond just fuels Wersquove been going green for a very long time and wersquore actually putting purchasing guides together for our buyers to have an understanding of how to buy green at their fingertips

Our centralized fleetwide programs have been around for years This includes packaging programs to reduce or eliminate plastic waste on ships Wersquore actually working with Amazon which has a packaging team thatrsquos looking at how to reduce frustration in packaging We want to work with them and reduce the amount of packagingmdashwhere it makes sensemdashso we have less cardboard and less plastic And where we must have plastic wersquore working closely with Army researchers in Natick Mass to make it biodegradable

Q Awesome Last year NAVSUP single supply solution imple-mentation of the Navy ERP planning won an award for best technology Can you tell me about that program what that award means and what the next steps are with it

A Thatrsquos our Navy ERP system one that Irsquom very proud of and that has been our focus for many years to put an ERP system in place and turn off our legacy COBOL-based systems Now that wersquove won this award we need to go further making the system ldquohumrdquo

We are also working with DLA which has a similar ERP sys-tem We are partnering with Vice Admiral Harnitchekrsquos team to ensure that our metrics and our presentations look the same Our goal is to create a presentation on the Web where a sailor can go to one screen and get not just DLA material information but Navy supply information as well We want a one-stop shop for NAVSUPrsquos fleet and joint customers

Additionally DLA has done a lot of work building an SAP procurement platform and we want to leverage their hard work to ensure that we can build an SAP procurement platform for the lowest cost And the final thing is making sure that SAP systems talk to SAP systems Lockheedrsquos got one DLArsquos got one wersquove got one Our systems ought to be able to trade data in a common format so we should be able to share data back and forth The key to this system is planning anticipating the buy and then putting the material on the shelf in advance of customer need Thatrsquos where we make our money And one last thing we must position it correctly

Q You talked about coordinating efforts with the Marine Corps and the Coast Guard Can you discuss how you work with the other services Do the different log supply services communi-cate with the Air Force to Army Army to Navy Do you coordi-nate that or is it still not quite as seamless

A We must coordinate effectively We have lots of weapons sys-tems that are joint platforms like the H-60 helicopter I mean who doesnrsquot fly it these days The Armyrsquos got 2000 of them the Navyrsquos got 600 the Air Force Coast Guard and the Marine Corps

wwwMLF-kmicom18 | MLF 63

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

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said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

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dex

is pr

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e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 28: MLF 6-3 (April 2012)

even fly itmdashso does the Customs Service You can point to the C-130 Same thing Who doesnrsquot fly one these days Our collabo-ration with the services and DLA is robust and well understood

We have demonstrated our ability to collaborate really impor-tant programs and we can collaborate on new systems like the Joint Strike Fighter We know how to do it but we have to do it more effectively and efficiently I look forward to working with my friends and professional partners in all of the services as we become more joint in our weapons systems

Irsquom sure the Joint Strike Fighter is just the tip of the iceberg There are many other opportunities like fuel medical sup-plies construction equipment uniforms and package patrolling transportation services and distribution products Things like household goods are one of the most joint processes that wersquove ever had

One of the things that I talked about in the beginning is lever-aging Lean Six Sigma to find efficiencies Herersquos one example of how wersquore working with our other services and our joint national partners to make it better In the old days within each geographic area each service had their own household goods office house-hold goods back office and a central household goods office Household goods cost a total of $700 million Wersquore improving the costs of our back offices and those household goods counsel-ors wersquore making joint processes in each geographic area

Q The DLA manages the parts at the Air Force logistics centers I believe the last time we talked DLA was going to assume some warehouses and some depot management Has that happened If so is progress satisfactory Where do you stand with that

A Wersquore very pleased with the progress We turned over more than 5 million square feet of warehouse space to DLA and are working with the DLA team to identify savings and warehouse reductions In the tidewater area perhaps 30 percent of our warehouse space can be reducedmdashand wersquove done that by col-laboratively working with DLA

Warehousing reductions are hard hellip we work it one ware-house at a time Whatrsquos stored in it whorsquos the customer how often do people need to get to it and where else can we store it

There are no easy wins here One warehouse at a time If you work with DLA you find efficiencies

Q Asset visibilitymdashknowing whatrsquos in that warehouse and all of the warehouses and the ships and so onmdashwhere do you think asset visibility technology is Is it where you want it to be or does it need to go further before itrsquos really going to be effective

A I need to work hard to ensure I have an aligned asset visibility plan for the future It is such a fast moving train that I must always refresh my strategymdashitrsquos something Irsquoll be doing this coming year

But in the near term one of the things Irsquom very proud of is our advanced traceability and control system which is a Navy home-grown system that provides excellent visibility of the ret-rograde coming back from the theater When you need to track your million-dollar-plus repairables therersquos no better way to track them coming back to the depot than using our advanced trace-ability and control system The other services have taken a look at this system and have said they love it So I hope in the future

that that system becomes a USTRANSCOM system and that they help take that to the next level

Q Letrsquos turn now to the sailor and Marine where everybody travels on their belly and talk about the dining services which fall within your lane of responsibility Tell me about the dining services and food services yoursquore responsible for

A We have a tremendous team heremdashnot just the senior leaders within the Navy who have provided decades of service ensur-ing effective food service for the Navy We actually have here on our staff an executive chef Chef Michael Harants and a registered dietician Jennifer Person-Whippomdashboth part of our food service team led by Commander Danny King who is lead-ing efforts to improve food in the Navy in collaboration with commander Naval Installations Command Defense Logistics Agency Fleet and TYCOMS The Navy laid out three aggressive goals in November 2011 to improve culinary specialistsrsquo [CSs] quality of workmdashwith NAVSUP leading the charge These goals include incorporating more scratch cooking and bakery prod-ucts increasing training and ensuring appropriate manning levels These goals ensure our CSs stay proficient in their train-ing which will ultimately result in guaranteeing sailors receive nourishing high-quality food

We have food management teams out in the fleet concentra-tion areas that will go aboard ships and help with training menus raw materials and the supervision on the ships These are things that I think about all the time If we get it all right we ensure the Navyrsquos fighting forces operate at peak performance and are ready to respond to threats worldwide The Navy has about 7300 CSs who feed more than 925 million meals per year Nothing impacts sailors more on a day-to-day basis than the great food they eat

As I mentioned before wersquore aiming to offer more scratch cooking on ships This not only provides tastier meals but it also helps cut down on trans fats We are always aiming to reduce fats sodium and sugars in our recipes while balancing output with good taste Sliders will always be the number one favorite but there is plenty of room for our CSs to interject their creativity and skills into everyday menus to make them interesting tasty and nutrient-rich

Q Sounds great Last question Is there anything else yoursquod like to add about the men women and mission of Navy Supply

A Wersquore 217 years into the history of the Navy Supply Corps The Naval Supply Systems Command has been around for a very long time as well Our business has transformed and I credit that to my superb team of military and civilian employees They are truly the best of the best Itrsquos a fast-paced environment and itrsquos going to move even faster

Irsquod be remiss if I didnrsquot mention the tremendous support I get from our national partners our allies and industry partners So beyond just the relationships inside of DoD wersquore working very hard outside the department as well

In closing I have a great team in the Naval Supply Systems Command and the Supply Corps I am confident that we will continue to adapt and face the challenges that are brought before us and succeed in supporting the needs of the warfighter and improving the quality of life for our sailors and their families O

wwwMLF-kmicom20 | MLF 63

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 29: MLF 6-3 (April 2012)

long gone are The days of ouija Board logisTiCs Todayrsquos supply Chains are managed To every deTailBy Bill murray

mlf CorrespondenT

With the drawing down of military presence in Iraq followed by the eventual end of the war in Afghanistan military logisticians are under increased pressure to lower sustainment costs to shrink their ldquotailrdquo Add to that reality the growing likelihood of sequestration in the DoD budgetmdash$500 billion in across-the-board budget cuts spread out over 10 years beginning in January 2013mdashand efficiency becomes all the more important

ldquoIt creates a tremendous pressure on logisticsrdquo said James Curtis vice president of defense logistics at SRA International ldquoWe need to squeeze out the inefficienciesrdquo

As much as 70 percent of total life cycle costs in logistics are associ-ated with operations and maintenance According to Alan Heckler a principal with AT Kearney of Chicago 50 percent of maintenance costs are replacing parts in the supply chain Being able to predict with suffi-cient accuracy the demand for spare and replacement parts is therefore becoming more important

As a sign of the stress on reduced logistics costs the Air Force Materiel Command in November 2011 announced its plans to reduce the number of its centers from 12 to five This move according to the Air Force will cut overhead costs and redundant layers of staff and is savings $109 million annually while improving AFMCrsquos overall man-agement and lines of communication

ldquoWith organizational alignment of the five-center concept the Air Force will have one belly button to push for logistics and supportrdquo Heckler said He advocates single line accountability for its benefits and cost savings ldquoThe system support manager will have responsibility for cradle-to-grave sustainment which is the way it should be They are spot on by doing better by doing differentlyrdquo he said of the Air Force

Contractors seem to be in the mix increasingly in the constrained budget environment ldquoWe use demand planning and forecasting to help determine proper stocking levels when to buy products and where to stock themmdashmost notably DLArsquos Tires Successor Initiative and DLArsquos Privatization of Chemicals and Packaged Petroleum Oils and Lubri-cantsrdquo said John Haima an SAIC senior vice president His company holds more than 20 large DoD supply chain management contracts

ldquoOn these contracts our success is highly dependent upon effective demand planning and forecasting We use a combination of different demand planning and forecasting models that are embedded in our Integrated Logistics Toolset which includes both COTS and SAIC-proprietary models and toolsrdquo

What Heckler sees is military organizations working closer to pre-dict demand and manage the risk of having too much supply with war- fighters program officers primes and subprimes ldquoOrganizations like Wal-Mart and Intel found that it wasnrsquot enough to have world-class IT systemsrdquo Heckler said ldquoEveryone has the same goal [in the military] an agile value chainrdquo He also sees military organizations outsourcing more work to third-party logistics providers

According to SRArsquos Curtis the comparisons to the supply chains of Fortune 500 companies such as Apple FedEx and Wal-Mart are limited ldquoThey know what their stores needrdquo he said of Wal-Mart ldquoTheir stores are all the samerdquo In contrast the US military is ldquomuch more reactive to conditions on the groundrdquo in its supply chain which affects demand planning and forecasting according to Curtis He argues that the

just-in-time logistics model used by many large corporations doesnrsquot apply to the US militaryrsquos operating environment The military does benefit however from the new technology insertion that DoDrsquos con-tractor community can help it accomplish onto existing programs and contracts according to Curtis

The stakes are high for effective demand planning and forecasting since it is very expensive to ship unneeded items to forward operating areas and it is also expensive to warehouse excess goods

Through his duties with SRA International Curtis works with the US Transportation Command at Scott Air Force Base Ill which is implementing the Advanced Transportation System for the 21st Cen-tury SRA International also helps manage the Defense Personal Prop-erty System a web-based system to help military and civilian employees of DoD better manage permanent change-of-station moves

Program managers as a part of this effort of working together with a virtual team are more inclined now to give the same visibility to supply logistics portals to warfighters primes and subprimes accord-ing to Heckler ldquoTherersquos a new version of collaboration across the food chainrdquo he said ldquoIn the past logistics was very much about meeting the demands of the customerrdquo but not engaging with the supplier base as much ldquoThe tail end of the dog has the same visibility as program officersrdquo of web logistics portals he said

Defense Logistics Agency spends $38 billion per year to manage 95 percent of the repair parts procurement for all of the armed services as well as 100 percent of the food fuel medical supplies clothing and con-struction equipment across the Department of Defense DLA activities reach 126 nations with 520000 shipments annually and 54000 requisi-tions in any one day It manages over 5 million items in eight supply chains across 26 distribution depots DLA employs over 160 demand planners some of whom are deployed to theater at any given time

The military has learned a great deal from commercial logistics companies with many innovations started in the oil and gas industry and then practiced in the commercial airlines industry before military leaders began implementing them according to Heckler Just like in a commercial enterprise military leaders donrsquot want to have too few of a particular weapons part for example to meet demand They also donrsquot want to have too much since the supply chain has to operate efficiently with any unnecessary costs diminished

In the late 1990s DLA began to replace its decades-old legacy sys-tems with an SAP Enterprise Resource DLA started feeding the JDA tool with data in 2003

In 2006 all items subject to demand forecasting were in the system DLA has more than 5 million items in their catalog and at any given time about 15 million are active Of the active about 300000 were replenishment and therefore relatively easier to forecast

ldquoThere are many capabilities in almost all of the commercial enter-prise resource planning (ERP) products on the marketrdquo SAICrsquos Haima said He added that DoD has ldquofaced the same challengesrdquo as commer-cial enterprises to adapt ERP tools effectively to meet their customersrsquo particular needs Demand planning needs to reflect those differences ldquoThe quality of demand planning and forecasting is in choosing the lsquobest fitrsquo model and then acting upon the implication of the forecast There is still some art mixed in with the science Thatrsquos where our deep

wwwMLF-kmicom MLF 63 | 21

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

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8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 30: MLF 6-3 (April 2012)

knowledge of the customer and the mission come inrdquo Haima said ldquoDoD is making steady solid progress and is devoting significant resources to improving their forecasting toolsrdquo he concluded

Kearneyrsquos Heckler said the decision support tools tend to dominate ldquo90 percent of the coveragerdquo but probably only merit about 10 percent of the conversation about demand planning and forecasting ldquoThose tools are very goodrdquo he said ldquoTheyrsquore not enough to move the needle so to speak but theyrsquore good at automating [demand planning] and availability demand Nothing is the panaceardquo

One fallacy of decision support tools in Hecklerrsquos mind is that they can help military planners ldquomake the wrong decision fasterrdquo when users input inaccurate data into them Heckler calls this phenomenon ldquogarbage in garbage outrdquo

Another misunderstanding of military logistics systems in Heck-lerrsquos mind is the assumption that some onlookers have that military logistics systems lag behind logistics systems of a similar scale in Fortune 500 companies According to fill rates in spare parts however some DoD organizations are reporting a 60 to 70 percent performance which is similar to the fill rate of commercial airline companies

The environments in Afghanistan and Iraq are highly dynamic according to Haima ldquoThat places extraordinary emphasis on adapting our demand planning and forecasting to the lsquoreal worldrsquo variances at the lsquotip of the spearrsquordquo he said ldquoThis increases the need to use lsquocausal model-ingrsquo the use of independent explanatory variables to predict demand over and above more traditional methods

ldquoMost forecasting and demand planning software rely on simple time series models that leverage the past demand observations to forecast the future demandrdquo Haima said He calls past demand observa-tions ldquothe rear-view mirrorrdquo

ldquoThe dynamic environment in Iraq and Afghanistan drive more reliance upon causal modelingrdquo Haima said ldquoMaximizing our collab-orative demand planning techniques allow us to react quicker resulting in SAIC buying the right products in the most economical quantities in advance of order receipt and subsequently fulfilling orders on timerdquo

With the decrease over time in purchasing new military planes and weapons systems due to a shrinking budget Inventory Locator Service LLC of Memphis Tenn is seeing a steady increase in its work with the

military according to Ryan Brown manager of market intelligence solutions with ILS The company works with the Air Force DLA Coast Guard and foreign militaries to find parts for older weapons systems with expired warranty agreements

ldquoOnce DLA can no longer get it then theyrsquore on their ownrdquo Brown said of military organizations seeking to replace parts on older weap-ons systems ldquoEspecially now that budgets are getting cut we see more interestrdquo he said ldquoTherersquos more business growth as people stop buying airplanesrdquo and need to use their existing fleet longer ILS works both with military agencies and defense contractors ldquoThe lead time with ordering parts from a manufacturer can be longrdquo he said

To effectively engage in demand planning and forecasting Brown suggests surveying the aftermarket for parts to determine both the supply and demand that exists for them Itrsquos important to note trends If there is hearty demand of particular parts but limited supply it makes sense to stockpile those parts according to Brown Conversely if the supply for a part is robust but the demand is weak then military organizations can order more conservatively confident that these parts will be readily available when they need them and that therersquos no need to worry about obsolescence

To engage in effective demand planning and forecasting also requires one to effectively gauge failure rates for particular parts according to Brown

SRArsquos Curtis credits the military for improving its demand model-ing which he calls a precursor to moving equipment across the supply chain ldquoTheyrsquore using better analyticsrdquo he said

Haima calls this field ldquoknowing the demand environmentrdquo which is critical for the company to be able to use the appropriate model for demand planning and forecasting ldquoWe have a deployed staff of field-based customer support representatives that work with our end-user clients CONUS and OCONUSrdquo he said ldquoPart of their responsibility is to help identify changes in production schedules and trends in parts usage that impact demand as early as possible We then take this collaborative demand data and feed our Integrated Logistics Toolset forecasting models Our staff of inventory planners then works to interpret the forecast data to make optimal inventory buying decisionsrdquo O

Demand Planning and Forecasting is easier with ILS solutionsbull SupportBOMforecastingwithsupplyanddemandtrenddata

bull Buildcostsprojectionswithcatalogandhistoricquotepricingpoints

bull LocatecriticalobsoletepartswiththeILSglobalsuppliernetwork

bull DiscoveralternatepartnumbersandprocurementsourcesthroughtheILSGovernmentResearchTool

Inventory Locator Servicereg LLC1-901-794-5000 (Worldwide) bull 1-800-233-3414 (North America) bull marketingILSmartcom bull wwwILSmartcom

MLF_April2012indd 1 3192012 31028 PM

wwwMLF-kmicom22 | MLF 63

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 31: MLF 6-3 (April 2012)

Not too long ago a university professor of business told me he was surprised every time he walked into the corner coffee shop and the barista poured him a cup of joe His amazement didnrsquot stem from the inflated cost of the mocha latte or because it tasted so good No he was astounded that they actually had the beverage to serve in the first place

He explained that the coffee beans were grown in Colombia had to be processed and packaged and shipped to America where they would be distributed to various outlets before being roasted ground up and finally run through the espresso machine When he put it like that his sense of wonder at a simple cup of coffee seemed justified

We were discussing supply chains and how important they are to a successful business model Turns out materiel logistics are just as critical to mission success for the armed forces operating in Afghani-stanmdashmore so actually since military supply delivery can be a matter of life and death not just a tasty macchiato

And itrsquos even more complicated ldquoThere are a variety of routes through which material moves into Afghanistanrdquo said Lieutenant Colo-nel Robert A Benjamin who is part of Joint Sustainment Command-Afghanistanrsquos Support Operations group at Kandahar Air Field

The majority of the needed cargo is shipped aboard sea-going vessels to a port where it is unloaded and trucked into theater Some equipment is flown on either a commercial or military aircraft while other supplies travel the NDN (Northern Distribution Network) which channels ldquocargo from sea ports in Europe through overland routes to the border crossings at Hairaton and other towns in northern Afghani-stanrdquo Benjamin explained

ldquoCoordinating these movements requires close cooperation among a variety of stakeholders including strategic partners such as US TRANSCOM US Air Force Surface Deployment and Distribution Command Defense Logistics Agency CENTCOM Deployment and Dis-tribution Operations Center USFOR-A Joint Sustainment Command-Afghanistan and various contracted goods and service providersrdquo

As complicated as it all sounds one of those service providers man-ages to maintain a relatively simple perspective on the entire process ldquoThe supply chain that we follow for our military customers is our com-mercial supply chain modified to account for the difficulty of ensuring that the parts reach the end customerrdquo said Jim Grooms director of integrated logistic services for Navistar Defense

ground supporT

Navistarrsquos niche in that supply chain is providing ldquotactical wheeled vehicles and military-grade commercial off-the-shelf vehicles that the armed forces use for logisticsmdashto move equipment and peoplerdquo said Elissa Koc Navistarrsquos manager of communications

Navistar Defense officially got started in 2004 but the company previously known as International Harvester has actually been around for more than 100 years building trucks buses and engines

No matter which conflict Navistar is supporting or which vehicle the military is using though one thing the company has learned is that the delivery of the automobile is just the beginning of success-ful in-theater material delivery ldquoVehicle sustainment is keyrdquo Koc continued ldquoWe have a global support networkmdashmore than 1100 locations throughout the world including Iraq and Afghanistanmdashto keep our vehicles mission ready In theater we also have field service representatives ready to handle vehicle maintenance and repair battle damagerdquo

Sometimes itrsquos not the means of transport that require atten-tion but the network of roads that cause problems ldquoInitially the US military partnered with commercial carriers including Maersk Line Limited (MLL) to develop the Pakistan ground line of com-munication (PakGLOC)rdquo said Torben Svenningsen senior director of government sales MLL ldquoDue to the vulnerability of supply chains however the need for multiple routes into Afghanistan became apparentrdquo

In fact PakGLOC was closed in November 2011 Svenningsen along with many other men and women who oversee the transport of supplies to American troops realized that ldquothe ever-changing security environment of this region of the world continues to drive the need for new and innovative supply chain solutionsrdquo he said

One of those solutions is the aforementioned NDN a series of varied supply routes that run into and from Afghanistan through gateways in Northern Europe and the Black Sea And while MLL is probably best known as an ocean carrier since the beginning of Operation Enduring Freedom the company has been acting as a full-service distribution provider moving cargo by sea through ports and ultimately over land to the major operating bases in Afghanistan

ldquoMLL is well positioned to meet the requirements of the US mil-itary and strives to expand and enhance the capacities of the North-ern Distribution Networkrdquo said Svenningsen Once the NDN was established ldquocommercial carriers MLL included started expanding their NDN networks significantly adding rail and truck routes to mitigate political infrastructure and throughput risksrdquo

This type of forethought paid off because once the PakistanAfghanistan border crossings were shut down ldquothe NDN became the primary means of land-based transportation into Afghanistanrdquo explained Svenningsen ldquoThe multiple corridors that encompass the NDN have served as alternative routes for cargo that would have normally moved via the PakGLOC This mitigated potential supply issues In addition Maerskrsquos global US flag network of ocean-going ships allowed for cargo bound for Pakistan to be quickly diverted and successfully moved to ports in Northern Europe for transportation on the NDNrdquo

Another solution of course is to avoid long multi-country land-based transportation operations and border crossings altogether ldquoThe C-5M Super Galaxy is redefining the art of air mobility operationsrdquo

many Take logisTiCs for granTedmdashThough never The logisTiCian By jB Bissell

mlf CorrespondenT

wwwMLF-kmicom MLF 63 | 23

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 32: MLF 6-3 (April 2012)

Expeditionary Lighting Systems

8032226400 8003461956WWWTENTLIGHTSCOM WWWPAXLIGHTCOM

Energy Efficient LED Shelter Lights

Energy Efficient Energy Efficient LED Shelter Lights

8032226400 80034619568032226400 8003461956

Expeditionary Lighting Systems

8032226400 80034619568032226400 8003461956 LIGHTING SOLUTIONSLED and Fluorescent

Shelter - Medical - Emergency - Maintenance

Less Energy07 Amp Draw

In Blackout Mode

Longer LifeIn Blackout Mode

Compatible WithSmart Grid Technology

Renewable Energy SystemsManaged Power Systems

said Chad E Gibson communications manager Lockheed Martin Aeronautics ldquoIt is the first US Air Force aircraft to perform a direct polar overflight delivery mission from Dover Del to Afghanistanrdquo

By delivery Gibson is referring to an almost incomprehensible payload of goods ldquoThe C-5M is the first true strategic airlifter capable of unrefueled global reach in excess of 5000 nautical miles with a full wartime payload of 122000 poundsrdquo he continued ldquoThis is com-bined with the ability to carry all Department of Defense cargo The C-5M is the only aircraft capable of carrying 100 percent of certified air-transportable freight and has a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneouslyrdquo

Direct-to-theater dispatches of this sort are unprecedented and invaluable to soldiers in Afghanistan ldquoFlexibility reliability and speed are the necessities for successful warfighter supportrdquo contin-ued Gibson So itrsquos not a coincidence that the end result of Lockheed Martinrsquos Reliability Enhancement and Re-engining Program (RERP) created an aircraft with these exact characteristics and attributes ldquoThe more than 70 improvements we made to the C-5M during RERP helped reduce a day in the resupply process by eliminating an en route stoprdquo Gibson said ldquoAdditionally many of the required resupplies have been large oversized tanks and other equipment This is tailor-made for this planersquos capabilities

While the C-5M has definitely provided some very recent advances to forward logistics Lockheed Martinrsquos C-130 Hercules continues to be an important cog in the overall supply chain ldquoIt was designed as a theater airlifter for the insertion extraction and resup-ply of troops to and those already in theaterrdquo said Peter Simmons communications manager for Lockheed Martinrsquos C-130 program ldquoItrsquos still the most in-demand resupply asset because it allows for both rapid ground offload of troops and supplies as well as aerial resupplyrdquo

Certainly some of the reasons for the C-130rsquos popularity are obvi-ous ldquoIt can operate from rough dirt strips and can perform in one day what it would take 60 trucks to achieverdquo Simmons said

Simmons though believes therersquos more to it than just that ldquoIt is always necessary to look at what the customer and end-user need

not what it is perceived they wantrdquo he explained ldquoSo often technol-ogy drives planning where the reverse should be true In many of todayrsquos theater scenarios it is the simple and lsquoeffectiversquo technologies that are needed as opposed to a high-cost high-complexity solution

ldquoThe C-130 Hercules has demonstrated for decades that it is often a product that addresses the basic requirements that has greater theater longevity lsquoGet things to theater and then move them around theaterrsquo Those were the original requirements for the C-130 Very simplerdquo

Whether equipment and supplies get to and around Afghanistan by means of the NDN or aboard a C-130 one of the most important behind-the-scenes tasks is to keep track of it all

Benjamin noted that ldquoa number of innovations have helped improve the supply chain One of those is more of a process than a product The notion of end-to-end distribution works to streamline the entire shipping process Rather than creating iron mountains of supplies and acres of depots to support our efforts we rely on a more responsive and flexible demand-based system that pushes supplies directly from the originator to the end-userrdquo

In order to make this work however commanding officers need to know whatrsquos available where it is and when itrsquos needed Thatrsquos where Honeywell Technology Solutions Inc (HTSI) can enter the equation with property accountability services

ldquoProperty accountability of assets especially in-theater provided equipment remains a difficult challengerdquo said James Kennon act-ing vice president for logistics at HTSI ldquoGiven these austere times the military has been tasked to do more with less By performing detailed analysis of equipment datamdasheverything from location to conditionmdashwe provide the ability for the military to make the best-informed decisions about sourcing equipment for future missions Being able to provide the military a clear and concise picture of what resources are available saves time money and ultimately livesrdquo

ldquoHoneywell is able to help the military view the larger picture by managing global inventory maintenance and operationsrdquo said Kennon So just like the college professor who is able to get a cup of coffee every morning soldiers are sure to have everything they need to successfully complete their missions while in theater O

wwwMLF-kmicom24 | MLF 63

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 33: MLF 6-3 (April 2012)

This article summarizes that research on the Aerospace amp Defense (AampD) Top 25 supply chain companiesrsquo performance for 2011 This is the third year wersquove listed the AampD Top 25 firms As part of our 7th Annual Supply Chain Top 25 research over 200 manufac-turing companies were analyzed on supply chain financial metrics ROA inventory turns and revenue growth In addition Gartner and industry supply chain peer opinions were added to create a total com-posite score for each firm Results for 2011 included both AampD prime contractors and major subcontractors The goal is to raise awareness of the supply chain discipline and describe how AampD companies are positioning their supply chains to cope with industry changes We also discuss key trends we are seeing in top AampD firms

key findings

bull Changing markets resulted in declines in Top 25 AampD metrics so firms are re-positioning for flat or declining Western defense spending and for growth in global defense and commercial aerospace marketsmdashfulfilling commercial backlogs is currently constrained by supplier capacity

bull Mergers and acquisitions (MampA) and programplatform terminations are impacting firmsrsquo industry positioning growth opportunities and talent requirements

bull Performance based logistics (PBL) sustainment contracts of gt5 years are the ldquonew normalrdquo as reduced budgets drive longer service life cycles for existing platforms

bull Leading AampD companies are focused on sustainability compliance and on achieving cost savings by actively managing reductions in emissions waste and power usage

bull Security is increasingly important in AampD supply chains including cyber-threats and counterfeit part detection and control

reCommendaTions

bull Position for growth in commercial aerospace global defense and emerging markets Assess your core competencies supply chain design and the capacityflexibility of your key supply partners

bull Re-assess your supply base and reconsider your supplier segmentation and risk management practices for the ldquonew normalrdquo

bull Get closer to customers and prospects in commercial aerospace and global defense including demand for both production and life cycle services enhance cost management capabilities to estimate life cycle costs and support trade-offs

bull Review your organization structure to leverage common processes and shared resourcesmdashre-assess talent requirements

bull Expand sustainability programs and security measures to help further reduce costs ensure compliance and mitigate corporate risk

analysis

With aggregate Western defense demand being reduced and aerospace backlog increasing the demands on companies to effec-tively manage supply chain strategy capability and execution has never been greater Lockheed Martin is once again ranked as the No 1 AampD company The company leads the nine prime contractors included in this yearrsquos AampD supply chain ranking based on compos-ite score Major AampD subcontractors are broken out for the first time this year and they did not fare as well as the prime contractors

While AampD as an industry vertical did not break into the overall global Top 25 both Lockheed Martin and Raytheon are listed in the Next 25

markeT researCh looks aT meTriCs To develop a ComparaBle ranking of The indusTrial supply Chain elemenTs for The aerospaCe and defense markeT By ray Barger jr and jane feiTler

wwwMLF-kmicom MLF 63 | 25

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 34: MLF 6-3 (April 2012)

The past year has been challenging for the AampD Top 25 In prior years firms () may have been ranked in another indus-trial vertical Return on assets (ROA) and Inventory Turns were down slightly from 2010 levels but a 38 percent drop in three-year weighted revenue growth from 75 percent to 46 percent confirms a transi-tion to a slower growth period for DoDMoD prime contractors

Comparing 2011 to 2010 AampD indus-try average inventory turns were down from 83 to 67 turns prompting compa-nies to more closely manage inventories and working capital Some major sub-contractors have been MampA targets in the past and may be in the future alternately some of these major subcontractors may acquire other companies or divisions to gain leverage or to expand and rebalance their defensecommercial mix

key CapaBiliTies for aampd Companies

In response to changing market condi-tions wersquove found seven key capabilities this year that are impacting supply chains now and will into the near future Top 25 AampD companies typically exhibit many if not all of these capabilities The table

however provides only one example per capability

looking forWard ndash Challengers

For 2012 we are closely watching Boe-ing and UTC for very different reasons

Boeing has the opportunity to move up the rankings as the 787 Dreamliner and 747 freighter production programs get underway along with the USAF KC-46A tanker program Boeing has had to do some production balancing with its supply base to synchronize ramp-up activities and wersquoll be looking to see how effective their supply chain team is in stepping up to these supplier production and 767-deriva-tive tanker platform challenges

As a major subcontractor United Tech-nologies (UTC) is using MampA to gain scale reorganize and obtain a more diverse commercialdefense product and service portfolio The pending consolidation and reorganization will challenge the new sup-ply chain leadership to align processes and suppliers to realize economies of scale dur-ing a period of great market flux O

Ray Barger CPSM CSCP BB and Jane Feitler PhD are research directors Sup-ply Chain Research Gartner Inc

For more information contact Editor-in-Chief Jeff McKaughan at jeffmkmimediagroupcom or search our online archives for related stories at wwwmlf-kmicom

Table 1 Gartner Supply Chain Top 25 for 2011 Aerospace amp Defense (AampD)

2011AampD Rank

2010 AampD Rank

Company (in AampD Ranking)

Prime Contractors

1 1 Lockheed Martin

2 2 raytheon

3 4 Northrop Grumman

4 3 General dynamics

5 5 BAE Systems

6 7 Boeing

12 8 Bombardier

13 Finmeccanica

14 9 EAdS

Major Subcontractors

7 United technologies

8 itt

9 rolls-royce Group

10 6 L-3 Communications

11 Honeywell

international

15 textron

16 thales Group

Note Lockheed is 1 in the AampD Top 25 but ranks 30th in our ranking of over 200 global manufacturing companies

Table 2 Key Capabilities of AampD Companies

Key CAPAbilitieS DeSCRiPtion exAMPleS

develop Alliances and offshore opportunities

Companies are expanding commercial aerospace alliances and are cultivating more domestic governmentagency and foreign Mod opportunities

General dynamics acquired Vangent inc to expand its federal health care business

Utilize Supply Chain Segmentation

Supply chains are using segmentation to become more efficient responsive and agile and to consciously understand metrics trade-offs

UtC has segmented its strong global aftermarket support network which uses facilities rationalization and low cost sourcing as part of its five-year plan

review Supply Base Companies are reassessing their existing supply base for global footprint and upside commercial capacity Suppliers are being leveraged and managed based on spend and volume supply factors market opportunities and relationships

Lockheed Martin manages its best-value suppliers based on business requirements supply base rationalization cycle time savings oversight cost reductions and weighted evaluation criteria

Assess organization and talent

Companies are changing and consolidating organizational structures and using center-led councils and corporate centers of excellence (CoEs) talent management and skills training are seen as globally significant issues

rolls-royce is leveraging off-shore government support to train new hires to produce jet engines

Evaluate Cost Management Practices

Cost management capabilities are being reassessed Supply chain organizations are collaborating with Finance and Human resources to train or hire financially capable supply chain personnel

BAE uses its ldquoSupply Chains in the twenty First Centuryrdquo (SC21) including cost modeling to help identify and gain supply chain efficiencies

Build in Sustainability

Sustainability is a key to brand reputation Cost savings and avoidance recyclereuse and corporate sustainability goals also work with increasing compliance demands

in 2011 the US EPA awarded raytheon their 4th Energy Star Sustained Excellence Award for their successful strategies and programs to reduce energy consumption improve energy efficiency and cut their greenhouse gas emissions

investigate Supply Chain Security

Supply chain processes and controls are needed to ensure sourcing traceability and counterfeit prevention Use reputable suppliers with upstream quality and testing processes

Supply chains must collaborate with it to ensure customer and supplier related processes and portals do not compromise network security export controlled sensitive technologies corporate intellectual Property (iP) or other competition sensitive data

Exostar is working with many primes subcontractors and suppliers to enhance trading hub portal security through improved user authentication and control and to reduce risk through greater upstream supplier visibility

wwwMLF-kmicom26 | MLF 63

The

adve

rtise

rs in

dex

is pr

ovid

ed a

s a se

rvic

e to

our

read

ers

KMI c

anno

t be

held

resp

onsib

le fo

r disc

repa

ncie

s due

to la

st-m

inut

e ch

ange

s or a

ltera

tions

MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 35: MLF 6-3 (April 2012)

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MLF CALENDAR amp DIRECTORY

aDVertisers inDex

AUSA Army Sustainment Symposium amp Exposition 10wwwausaorgAviall C4wwwaviallcomIHS 19wwwihscomInventory Locator Service 22wwwilsmartcomJameson LLC 24wwwtentlightscomMaersk Line Limited 3wwwmaersklinelimitedcomManTech 11wwwmantechcomPratt amp Whitney C2wwwf135enginecomProtective Packaging Corporation 5wwwprotectivepackagingnetQuad Cities Chamber of Commerce 9wwwndia-ia-ilorg

calenDar

SPecial PUll-OUt SUPPlement

AAI Logistics and Technical Services 3wwwaaicorpcomNorthrop Grumman C2wwwnorthropgrummancomperformanceNorthrop Grumman 4-5wwwnorthropgrummancomperformance

May 8-10 2012AUSA Sustainment SymposiumRichmond Vawwwausaorg

May 14-16 2012Army National Guard Logistics Management SeminarAustin Texaswwwtechnologyforumscom

May 21-24 2012Environment Energy amp Sustainability SymposiumNew Orleans Lahttpe2s2ndiaorg

June 4-8 2012GEOINT Community WeekWashington DC areawwwusgiforg

July 16-18 2012Performance Based Life Cycle SupportWashington DCwwwwbresearchcompblusa

July 25-27 2012Performance Based LogisticsAlexandria Vawwwpblusacom

June 25-27 2012Military Logistics SummitWashington DCwwwmilitarylogisticssummitcom

August 13-15 2012Tinker and the PrimesOklahoma City Oklawwwtinkerandtheprimescomindexphp

September 9-12 2012NGAUS ConferenceReno Nevwwwngausconferencecom12NS

May 2012Vol 6 Issue 4

Lt Gen Raymond MasonUS Army Deputy Chief of Staff G-4

Cover and In-Depth Interview with

NEXTISSUEThe Publication of Record for the Military Logistics Community

BonuS DISTRIBuTIonAUSA Sustainment Conference

Insertion Order Deadline april 16 2012 bull Ad Materials Deadline april 23 2012

Special Sectionlife Cycle managementWith budget stress there is heightened awareness on managing program costs over the life of a program

FeaturesloGCaP PerformanceMeasuring success in the Logistics Civil Augmentation Program

aerial deliveryresupply via air is great Precision unmanned resupply is even better

Shelters amp Shelter SupportKeeping the elements out and the occupants dry and comfortable

equipment diagnosticsUsing internal and internal monitoring systems to track equipment health

To Advertise Contact Jane Engel MLF Associate Publisher 3016705700 x 120 bull janekmimediagroupcom

this special pullout supplement will feature a detailed look at the 309th Maintenance

Wing ogden Air Logistics Center with an exclusive interview with Colonel Allan day the

309thrsquos wing commander other features include an insightful article on doing business

with the Center plus a profile of their top critical contracts

SPECIAL PuLLouT SuPPLEMEnT

wwwMLF-kmicom MLF 63 | 27

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 36: MLF 6-3 (April 2012)

Donald J WetekamSenior Vice President Government amp Defense Business Development

AAR CorpDonald J Wetekam joined AAR in 2007

He served 34 years in the US Air Force retiring as a lieutenant general after his final assignment as deputy chief of staff for instal-lations and logistics Prior to that Wetekam directed operations at the Warner Robins Air Logistics Center and held several key leader-ship positions in aircraft maintenance and supply chain management

Q Please provide some background on AAR and the companyrsquos work with DoD in the logistics arena

A AAR provides comprehensive supply chain management services to the US government and its allies and to OEMs that support military programs We started supplying aircraft parts to the military in the early 1980s In 2000 the company won its first major defense contract for a tip-to-tail supply chain program

Today our programs cover the entire sup-ply chain from forecasting procurement and inventory warehousing to distribution compo-nent repair management and overall program management For many customers we have dedicated program operations and customized IT solutions to ensure rapid response and reli-able parts availability

Q Please indicate the primary business areas of AAR and briefly explain the functions of each

A AARrsquos corporate structure has four main business groups The first encompasses supply chain management and engine parts manage-mentmdashthis was really the core of the company going back to its founding in the 1950s

Secondly there is a maintenance repair and overhaul group which has grown to be the largest independent provider in North America Itrsquos largely commercial-based although we are seeing an increasingly amount of government work in that sector

The third area is our manufacturing seg-ment called structures and systems This group is largely governmental focusing on mobile shelters air transportable containers design and build of cargo products and systems for aircraft and also precision fabrication capabilities

Our fourth group is government and defense servicesmdashbuilt around our airlift and communications technology businesses We operate a fleet of over 60 aircraft and are Trans-

portation Commandrsquos largest expeditionary air-lift provider in Afghanistan

Q As a major player in the military logistics arena how is AAR helping DoD meet current key logistics objectives

A There is a variety of answers to thismdashIrsquoll give you a few examples The 463L pallets that DoD uses to move their material are almost exclu-sively from AAR along with our containers and others We provide expeditionary airlift for the transportation command and also for the US Navy Since 2005 wersquove flown more than 90000 missions transported 850000 personnel and delivered 140 million pounds of cargo and mail

We also manage supply chain for strategic weapons systems throughout DoD including the entire KC-10 fleet as a team member to Northrop Grumman

Q What are some of the new programs you are working on in partnership with DoD agen-cies and the military services

A AAR has a number of recent programs the KC-10 fleet supply chain operation and the air-lift capabilities previously mentioned are both fairly recent We have also introduced some new products in the shelter business including a lightweight multi-purpose shelter that is electromagnetically shielded

Q What are some of the main challenges you are facing in meeting the needs of the 21st-century warfighter

A Keeping up with the demands and chang-ing global footprint is important to usmdashwe go where the military goes We have to change our operating environment as they change their operating environment We also face budget-ary pressures just like they do We understand DoDrsquos requirements for better value for their defense dollar so wersquore driving cost out of our own processes to remain competitive This

includes lean initiatives and efficiency improve-ments across all of our operations

Q How is AAR ready to meet the challenging DoD budgetary times that are ahead

A Throughout AARrsquos history there have been periods where the commercial aviation busi-nesses saw decline due to worldwide economic challenges most notably after 911 We had to shift our business model considerably and faced a number of challenges similar to what DoD is facing now Our experience during that time and afterward was key to realigning our focus and we believe that we can bring that same experience and focus to DoD We recognize that the militaryrsquos needs and challenges are quite different but there are a number of things we learned during the commercial downturn that can be applied here For example on a recent project we recommended applying a proven safe and efficient commercial model for using overhauled engine parts They followed that recommendation and saved in excess of $35 million on one program alone We work closely with DoD making recommendations that were successful on the commercial side and have real potential on the military side and as a result are moving up the value chain as a trusted supplier

Q How has AAR positioned itself and prepared for 2012

A The pillars of our strategy remain the same a customer-centric business model a solid financial position and continual investment in diverse capabilities that align to customer and market needs

Q What are your goals for 2012

A We plan to further diversify the business and find additional ways to serve our customers within our current US network and by branch-ing out to other international governments

Q Are you involved in partnerships with others in the industry

A Yes we have a long proven history as a top-tier supplier to some of the large defense primes and we have increasingly taken on the role of the prime contractor in select markets as well O

INDUSTRY INTERVIEW Military Logistics Forum

wwwMLF-kmicom28 | MLF 63

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 37: MLF 6-3 (April 2012)

Military Logistics Forum has the answer to your need with our DLA-centric issue

Military Logistics Forum

DO YOUDEFENSE LOGISTICS AGENCY

THE NEED TO REACH

Featuring

Exclusive interviews with Vice Admiral Mark Harnitchek DLArsquos Director and Redding Hobby the Deputy Director of DLArsquos Logistics Operation

This DLA-focused issue will look at the importance of partnerships to DLA their supply chain strategic supplier alliances and their medical clothing and textile supply chains

Bonus Feature

Quick reference guide on ldquoDoing Business with DLArdquo highlighting PLFAs and their major commodity items websites email or phone numbers and PTACs This is a must-have reference guide

Vice Admiral Mark Harnitchek

Redding Hobby

For more information on reaching the DLA contact Jane Engel MLF associate publisher at 3016705700 x 120 or janekmimediagroupcom

Coming in June 2012

Page 38: MLF 6-3 (April 2012)