On-Time Every Time Government On-Time Every Time Government Furnished MaterialFurnished Material

2

GFM Where We StartedGFM Where We Started

Treated as a process without sound programmatic elements Man Power Coordination and Enterprise Involvement Customer Focus Quality/Oversight System Support

Incorrect material shipments Not ALL GFM pushes received at warehouse Inconsistent Square inch allowance calculations GFM material returns not posted in EBS Long process cycle times A lot of rework

Results in Poor Quality OutputResults in Poor Quality Output

3

Lean Six Sigma EffortLean Six Sigma Effort

Problem/OpportunityThe C&T lacks a defined and reliable process for delivering and reconciling Government Furnished Material (GFM) to the Cut Make Trim (CMT) vendors for on time End Item Production.

Goal Understand Transparent Quality Product In Accordance With the Contract Timely payment to the Fabric Vendor

Project ScopeFrom planning of fabric requirements, to reconciliation of material with the CMT Vendor

4

GFM Request

MaterialQuantityContract #Delivery Order #

Total C/T = 2 days

CMT Vendor

1 days 2 days 12 days 3 days 3 days 3 days

Lead Time = 24 days

VA / T = 24 daysRM = 0 secondsWIP = 192 hoursFG = 0 seconds

End item

Delivery Order

itemssizesDue DatesSq inch allowances

Total C/T = 1 days

DSCP

Process GFM

Request

materialamountcontract #delivery order #ship to address

Total C/T = 12 days

Receive MRO

material quantityship to addresscarrier

Total C/T = 3 days

Peckham

Pick and Pack

materialcarrierpick up dateShip to location

Total C/T = 3 days

Ship

pick up timedrop off time

Total C/T = 3 days

CMT VendorCut, Make,

Trim, Reconcile

Material reconcilliation is difficult

Ø

Errors are made in Contract # and Delivery Order #

Ø

Exception data is not transmitted

Ø

Processing takes too longErrors are mdde in detail informationTransactions are not completed

Ø

Ø

Ø

Material allowance calculationsMaterial reconcilliation is difficult

Ø

Variation in the amount of time Vendor takes to submitErrors are mdde in detail information

Ø

Ø

As Is Value Stream MapAs Is Value Stream Map

GFM Request to Ship Date

IDOC for insuff mat’l

IDOC for insuff mat’l

IDOC for EBS doc

#

IDOC for EBS doc

#

IDOC for special

stock non-existent

IDOC for special

stock non-existent

21 Day Gov’t GFM process Time Allowed

5

Data Collection ResultsData Collection Results

EBS Analysis IDOC errors Incorrect shipment destinations (DODAAC) Incorrect shipment quantities and delivery schedules

Number of Days (GFM Request Receipt to ship date from the GFM warehouse)

Frequency of GFM material shipped to wrong location Extremely Low Frequency

Frequency of Alternate Ship To Addresses (DODAAC) High Frequency

Benefits: Process Map of Activity, Cycle Times and Waste

Benefits: Process Map of Activity, Cycle Times and Waste

The Environment is EBS and it’s

Interfaces!

6

Quick WinsQuick Wins Eliminate Bottlenecks:

Some Electronic Transactions for pushing GFM from Peckham do not reach Peckham. An interim fix was put in place confirm what is to be shipped to specific address

Shipping transactions at Peckham not always visible through EBS, interim fix in place

Organizational Structure/Manpower (Oversight) Tracking matrix for contracts using GFM material. C&T, DSCP tracks

contracts through GFM process until end items received to ensure that transactions are not lost.

Square Inch Tables – Allowances provided to vendors were reviewed and the calculations are now standardized

Notice for GFM users posted for Vendor information on the Supplier Information Resource Website to eliminate GFM request errors

Semi-Annual inspection and accountability for GFM implemented

Now we have Program Focus!Now we have Program Focus!

7

Tracking MatrixTracking Matrix

Anthony.D'Avella@dla.mil

Delivery Order

Buyer Received 1786 from

Vendor

Buyer Verifys w/

Supply Planner

Buyer Forwarded

1786 to PDM

PDM Creation of SL No. in

SAP

Confirmation of SL No.

Transmission to Depot

Address & Carrier

Confirmation w/ Albany or

Peckham Annotate Book

Forward 1786's to

Buyer DAYSManager Buyer Contract 46 Number Vendor Item Nomenclature 1 2 3 4 5 6 7 8 9

Kevin Peter 08-C-0032 Coates Trousers Men's Green , MC N/A 8/4/2008 8/4/2008 8/4/2008 9/10/2008 9/10/2008 9/10/2008 9/10/2008 9/10/2008 6Kevin Nathalie 05-D-0504 Crown Coat Men's green MC 446 9/5/2008 9/5/2008 9/5/2008 9/12/2008 9/12/2008 9/12/2008 9/12/2008 9/12/2008 7Alan Nathalie 05-D-0504 Crown Coat Men's Blue MC 447 9/9/2008 9/9/2008 9/9/2008 9/9/2008 9/9/2008 9/9/2008 9/9/2008 9/9/2008 1Ellen Peter 08-D-N002 Goodwill Slacks Woman's AF 31 9/2/2008 9/2/2008 9/2/2008 9/16/2008 9/16/2008 9/16/2008 9/16/2008 9/16/2008 14Lynn Peter 08-F-0016 Knox Slacks Woman's Navy N/A 8/25/2008 8/25/2008 8/25/2008 8/27/2008 8/27/2008 8/27/2008 8/27/2008 8/27/2008 2Ellen Tom 05-D-0453 Maryland Coat Men's AF 467 9/10/2008 9/10/2008 9/10/2008 9/11/2008 9/11/2008 9/11/2008 9/11/2008 9/11/2008 1Ellen Tom 05-D-0453 Maryland Coat Men's AF 468 9/10/2008 9/10/2008 9/10/2008 9/11/2008 9/11/2008 9/11/2008 9/11/2008 9/11/2008 1Kevin Nathalie 08-D-1093 Omega Skirt MC Green 9 9/24/2008 9/24/2008 9/24/2008 9/24/2008 9/24/2008 9/24/2008 9/24/2008 9/24/2008 1Alan Nathalie 08-D-1093 Omega Skirt Blue 10 9/24/2008 9/24/2008 9/24/2008 # 9/24/2008 9/24/2008 9/24/2008 9/24/2008 9/24/2008 1Lynn Nathalie 08-M-6265 Sewell Coat Mn's Navy N/A 8/26/2008 8/26/2008 8/26/2008 8/27/2008 8/27/2008 8/27/2008 8/27/2008 8/27/2008 1

06-D-0301 Teneesee Slacks 45 8/20/2008 8/20/2008 8/20/2008 8/21/2008 8/21/2008 8/21/2008 8/21/2008 8/21/2008 1Carol Peter 07-D-N012 VGS 99 9/9/2008 9/9/2008 9/9/2008 9/11/2008 9/11/2008 9/11/2008 9/11/2008 9/11/2008 2

Anthony D'Avella X3193

Buyer 1786 Actions Planning Data Maintainer Actions

Cycle Time has dropped since implementing tracking

Cycle Time has dropped since implementing tracking

8

Going ForwardGoing Forward

EBS handling of exception data electronically to the Warehouses (10/15/08)

GFM arrives at CMT Vendor in time for them to meet their Delivery Schedule

Determine best practice for reconciling excess GFMAccountability and cost

Determine how best to support GFM Implement Semi-Annual Fabric inspection

9

GFM Request

MaterialQuantityContract #Delivery Order #

Total C/T = 1 days

CMT Vendor

1 days 1 days 3 days 1 days 3 days 3 days

Lead Time = 12 days

VA / T = 12 daysRM = 0 secondsWIP = 96 hoursFG = 0 seconds

End item

Delivery Order

itemssizesDue Dates

Total C/T = 1 days

DSCP

Process GFM

Request

materialamountcontract #delivery order #ship to address

Total C/T = 3 days

Receive MRO

material quantityship to addresscarrier

Total C/T = 1 days

Peckham

Pick and Pack

materialcarrierpick up dateShip to location

Total C/T = 3 days

Ship

pick up timedrop off time

Total C/T = 3 days

CMT Vendor

Vendors know DO# is critical

Ø

Time to process is reducedError messages are resolvedGFM processing is tracked by Contract

Ø

Ø

Ø

Exception data is transmitted

Ø

Vendors know limitations on material qty

Ø

Reconcilliation at Delivery Order Completion (shipping costs are reduced - material is transferred to new delivery order)

Ø

To Be Value Stream MapTo Be Value Stream Map

10

Back Up SlidesBack Up Slides

11

Director Supplier OperationClothing & Textile Supply Chain

Gary Shute

Contracting Officer 1102 GS 12Deborah Scafidi

Unlimited WarrantPre Award – Award – Closeout

(reassignment)

Resolution Specialist 2001 GS 9/ 11Veronica Thomas

Intern(transfer from C&E)

Acquisition Specialist 1102 GS 11Melzetta Graves

100k Limited WarrantGFM Reconciliation)

(reassignment)

Supply Planner GS 7/9/11

Herminio FerrerIntern

(reassignment)

Supervisor - Bob Little SAMMS ResearchCherokee 6 StaffJoseph DelucaMario Desideri

John LynchAlfred Rossi

Carole Stratton

PDM GS 7/9Angie Anderson(reassignment)

Supervisor - UnknownEBS

Reconciliation - Mod Cherokee 8 Staff

1.2.3.4.5.6.7.8.

PDM GS 7/9LaTonya Newton(reassignment)

GFM Program ManagerLTC Williams

CAT GS 7Victoria Martin

(detailed)

GFM Organizational ChartGFM Organizational Chart

Buying and Pushing out GFM Material

Buying and Pushing out GFM Material Resolution

ResolutionReconciliation

Reconciliation

12

High Level Process Map (SIPOC)High Level Process Map (SIPOC)Supplier(s) Inputs/Req'ts Process Output(s)/Req'ts Customer(s)

Procurement (Req'ments,

Demand, Contracts, Supply

Planning)

Supply P lanner

DFAS (Vendor

Payments after DD250, and D4)

CMT Vendor/

Manufacturer (gets paid)

Product Specialist

Fabric Producer (gets paid)

Depot

Acquistion

Specialist

P lanning Data

Maintainer (PDM)

Delivery Order (DELY)/

Produce Fabric at Textiles

Inspect

Invoice @ Fabric Mfgr

Receipting @ Peckham

Create PR for end item to create GFM

Need

Produce End Item (CMT)

Ship and Store End Item at

Depot

Reconciliation

Fabric

Results of

Inspection at

Fabric Vendor

Rework:Contract Mods on CMT vendor Re-entering orders

Ÿ

Ÿ

Fabric DD250 (Wide Area Work Flow - invoice)

Sales Order

A5/MRO

DD250 from CMT

Vendor for end item (invoice)

D4 (Depot Receives End

Item generates D4 in EBS)

D4 (Peckham receives

fabric - D4 created in EBS - needed forPayment to Fabric Vendor)

Fabric ContractMaterial

Quantity

Due Dates

ŸŸŸ

DELY order to

Fabric Mfgr

Inspection Policy

& Criteria (Fabric

Specifications)

PO (Acq Specialist

DD1155 to CMT Prime Vendor)

Bill of Materials

Delivery Forecast

and PR for end

items

DODAACNSN

Service Program

Manager

Demand Planner

Supply P lanner

Fabric Producer

Product

Specialist

Acquistion

Specialist

P lanning Data

Maintainer (PDM)

DCMA

CMT Vendor/

Manufacturer

Contact info and

ship from address

Request for GFM

and Ship to Address

AR0,ARA, or

ARB (Peckham

acknowlegement of shipment at request qty, above or below)

End Items

EBS "push" of

GFM