PROGRAMMES, SUCCESSES AND CHALLENGES FACING LOGISTICS IN THE ITALIAN NAVY

NAVAL LOGISTICS INSPECTORATENAVAL LOGISTICS INSPECTORATENAVAL LOGISTICS INSPECTORATENAVAL LOGISTICS INSPECTORATE

LATEST PROGRAMMES, SUCCESSES AND LATEST PROGRAMMES, SUCCESSES AND CHALLENGES FACING LOGISTICS CHALLENGES FACING LOGISTICS

IN THE ITALIAN NAVYIN THE ITALIAN NAVY

Captain Alessio CARTACaptain Alessio CARTA Chief of Internal General Business Office and Technical Assistant of the Chief of Internal General Business Office and Technical Assistant of the

Inspector of the Logistic Support and Lighthouses InspectorateInspector of the Logistic Support and Lighthouses Inspectorate

http://www.marina.difesa.ithttp://www.marina.difesa.it

2

The Navy Chief of Staff is responsible for the Naval Instrument:

Operational control through the Chief Command of the Fleet (CINCNAV)

Technical/logistical/administrative control through Inspectorates: NAVISPELOG for logistic support

OVERVIEW OF THE LOGISTIC ORGANIZATION


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TARANTO AUGUSTALA SPEZIA

2^ LINE SHIPS

1^ LINE SHIPS

100%

0%

50%

AUXILIARY SHIPS

BRINDISIOther bases

63 38 34 137 155 SHIPS

275 kTons

1^ LINE SHIPS and SUBMARINES

2^ LINE SHIPS

19

45

91 AUXILIARY SHIPS

EVOLUTION OF LOGISTICS SUPPORT SYSTEM

OUR CUSTOMERSTHE FLEET


4

OVERVIEW OF THE LOGISTIC ORGANIZATIONNAVISPELOG

Naval Logistic Support and Lighthouses Inspectorate regulates and directs:

Maintenance programmes of Naval UnitsAcquisition and management of materials and stocksManagement and preparation of ammunitionsUp-keeping of infrastructuresAcquisition of working-meansTests and Trials on new shipsManagement of lighthouses and maritime signalling


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LA SPEZIA

CIMA AULLAMARINARSEN SP

MARIPERMANMARIMISSILI

MARICEGESCOMARINALLES

MARITECNOFARIDIREMAG SP

LIVORNO

MARITELERADAR ROMA

NAVISPELOG

•

BRINDISI

MARINARSEN BR(Marinarsen Taranto Section)

TARANTO

AUGUSTA

MARINARSEN AUGUSTAMARIPERMAN UDGDIREMAG AUGUSTA

(OFF. MSL. CAVA SORCIARO)

MARINARSEN TA DIREMAG TA(MARIMUNI TA)

CISAM

S.PIERO A GRADO

OVERVIEW OF THE LOGISTIC ORGANIZATION


INTERNATIONAL COOPERATION

SLAT

JSF

U-212 A

PAAMS

VULCANO

EH-101

MU-90

NH-90

FREMM

HORIZON


PAAMS: the ISS will be managed by OCCAR

U212A: the MOU has been signed for common support (Common Source Data Base, spare parts, configuration management)

Horizon Frigates: discussion is in due course to establish a Common Support Collaboration

FREMM Frigates: program under OCCAR management and the contract already include the ISS

INTERNATIONAL COLLABORATION


PICTURE

continuous evolution of operational context

traditional standard not up to date nor sustainable for STRUCTURAL LIMITS:

Laws and regulations

Reduction of available budget

Personnel

GOALS

Operational activity increased

Framework of industrial nature (EVOLUTION):

Organization

Maintenance (core-business)

Spare parts management

Logistics disciplines

THE LOGISTICS SUPPORT SYSTEM


Complex legal and administrative rules

don’t allow a thorough analysis of efficiency and productivity

don’t allow to employ personnel in an effective way

Fragmented organization

Articulated in many hierarchical levels and mainly bureaucratic

Changes are not easy to implement

STRUCTURAL LIMITSSTRUCTURAL LIMITS: LAWS AND REGULATIONSRAD (recently introduced)

Operational instructions for arsenals Simplification of procedures

ADMINISTRATIVE TOOLS According to civil code

According to rules of effectiveness and accountability that belong to the contracting and industrial world:

Implementing Info-logistic system Change management Automatic interface for acquisition and payment

MAIN PROBLEMS OF LOGISTICS SUPPORT


Reduction of funds Reduction of effectiveness level and

operational availability Postponement or replacement of major

overhauls with less extensive maintenance works (priority to ensure obligations by law: expiry dates, safety and habitability of the Ships and safeguard of the environment)

Reduction of stocks: materials, fuels and equipment

Reduction of outsourcing services

Reduction of training levels and operational personnel readiness

Negative impact on personnel life and enthusiasm (as transfers, services, extra-duty)

Budget proportion is unbalanced (in service support, acquisition, personnel)

STRUCTURAL LIMITSSTRUCTURAL LIMITS: REDUCTION OF AVAILABLE BUDGET

Reorganise expenses

Re - balancing resources distribution

GOAL VALUES

Personnel: 50% In service: 25% Acquisition: 25%



TREND OF FINANCIAL RESOURCES IN SERVICE SECTOR

250

300

350

400

450

500

550

2002 2003 2004 2005 2006 2007 2008

M€M€

STRUCTURAL LIMITS: REDUCTION OF AVAILABLE BUDGET



FINANCIAL YEAR 2008


STRUCTURAL LIMITS: REDUCTION OF AVAILABLE BUDGET


Number and skill of personnel: not always in line with present functions

STRUCTURAL LIMITSSTRUCTURAL LIMITS: PERSONNEL

Requalification for the tasks to perform

Incentive

Motivation

Professionalism

Turn over



0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

2003 2004 2005 2006

CIVILIAN PERSONNEL

RETIREMENT

EFFECTIVEORGANICFORCE

SCHEDULED ORGANIC FORCE (3739 UNITS)

ARSENALS CIVILIAN PERSONNEL SITUATION



“Andreatta” reform primary guidelines:

Structural and organizational changes included the creation of Works and Services Direction with insertion of arsenal support functions;

Distinction between “programmed activities” (involving industrial effectiveness) and “direct support” to Ships (involving readiness in spite of economy management)

Set up a Data Processing System for Arsenal and Logistics (SIGA)

ORGANIZATION: THE START UP

Reform has never been fully implemented

It postulated full manning in new organization charts



INITIATIVES

SEPTEMBER 2007: APPOINTMENT OF C.A.I.D. (DEFENCE INDUSTRIES AREA COMMITTEE) REPORT DELIVERED ON 30 JUNE 2008

DECEMBER 2006: PROBLEM RAISED TODEFENCE MINISTRY LEVEL

APPOINTMENT OF JOINT WORKING GROUP COORDINATED BY NAVY

2005: INSPECTORATE STUDY ABOUTREGULATION CHANGES

ADMINISTRATIVE CHANGES

NEW ORGANIZATION

INSPECTORATE AND ARSENALS EVOLUTION STUDIES

APRIL 2009: APPOINTMENT OF C.R.A.M.M. (NAVY ARSENALS RESTRUCTURING COMMITTEE) PROPOSAL FINALIZED ON JULY 2009



Infrastructuresneed to restructure and rationalize. Financing based on exploitation of Defence areas and infrastructures (according to art. 14 bis L. 133).

PersonnelExcess of personnel in the indirect area; need to transfer personnel from indirect activities to the production area; Professional alignment, coherent with industrial reality and weapon systems technological complexity.

EVOLUTION OF LOGISTICS SUPPORT SYSTEMCAID MAIN RECOMMENDATIONS


InfrastructuresSelect available assets Upgrade needed facilities (Piano “BRIN”)Increase the value of not needed assets

Personneltraining based on new systemsselective review of the choices “make or buy”need to seek more activities fully exploit available potential“selective” employment planOptimal sizing: result to be obtained gradually

CAID ACTIVITIES: ACTION ITEMSEVOLUTION OF LOGISTICS SUPPORT SYSTEM


INITIAL PLAN OF 400 M€: NO RESULTS

Infrastructures

OTHER PLAN IN 2004, “MINIMAL” ONE, ABOUT 150 M€ PER 5 YEARS : NO RESULTS

NEW PLAN (BRIN) PROPOSED BY THE NAVY:

• ACCORDING TO C.A.I.D. RECOMMENDATIONS

• CONSISTENT WITH REQUIREMENTS

UPGRADE OF NEEDED FACILITIES (PIANO “BRIN”)



Inspectorate organizationInnovative studies have been carried out in order to realize a structure capable to perform an industrial approach by means of:

comprehensive approach to all issues of the arsenals (infrastructures, facilities, personnel, internal organization, ..)

process of “engineering maintenance”

procedure of “planning and control” of work

procedure of “measurement and analysis” and “quality of product and process”

“everything that is measureble

could be managed and improved”

EVOLUTION OF LOGISTICS SUPPORT SYSTEMINSPECTORATE AND ARSENALS EVOLUTION STUDIES


Treasuring internal resources

New models of governance for arsenals

Industry only for modern equipment with high technological level

On the job training

Treasuring logistics studies and feedbacks (from the field)

Mock-ups management (resolution of complex failures, test site for system changes, training)

Design based on prognostic and proactive maintenance

MAINTENANCE (CORE BUSINESS)

Wide up-keep cycle:

maintenance plans were too conservative and not experimented in the field

reliability not experimented in the field

wide maintenance works

Improve up-keep cycle



Depot stocks (reorganise and improve)

On-board Stocks (only safety and navigability)

Operational kits (complex international exercise and real operations)

Restart kits (programmed maintenance)

List of Equipment (LDP)

Logistic studies Best practices Feedbacks

Common Stocks (joint and international programmes) Similarities Insurance Long Lead Items

SPARE PARTS MANAGEMENT



Configuration management for Systems/Equipments with the following constraints:

High cost of acquisition

High operational value

Wide life cycle (at least 10-15 years)

Source from international cooperation

Large population

Feedback management

LOGISTIC DISCIPLINES

Verifying maintenance

Sizing spare parts

Assessment of the figures of worth

Deteriorated assets management

Management savings



STUDIES IN PROGRESS IN COLLABORATION WITH INDUSTRY, NAMSA, OCCAR TO ADAPT THE CENTRE TO FUTURE NEEDS AND MAKE IT A EUROPEAN CENTRE OF EXCELLENCE

Capabilities of the Centres made available in the commercial field

Changes in the rules of governance of the arsenals

Partnership with Industry

Public Economic Agency Others …

TREASURING INTERNAL RESOURCES

Advanced Ammunition Joint Centre (CIMA)



CHALLENGES

AREAS TO IMPROVE

• Info-logistic system and standardization

• New constructions procurement process

• Joint Training

GREATER INDUSTRIAL INVOLVEMENT

• Technological development and obsolescence

• Innovative contracts

COOPERATION WITHIN DEFENCE/CIVILIAN (NATIONAL/INTERNATIONAL)


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CHALLENGESAREAS TO IMPROVE: INFO-LOGISTIC SYSTEM

ARSENALS & MATERIALS MANAGEMENT

Maintenance management

Logistics of materials

•Materials data

•Procurement

•Handling

Administration and audit

•Suppliers procurement accounting

•Management of cost centres

•Management of contracts


AECMA 1000 D

NEW DATA MODEL FOR LOGISTIC SUPPORT ANALYSIS = NATO Product Data Model

NH – 90 PROGRAMME DATA BASE

MIL - STD 1388 - 2 BAECMA 2000 M

CHALLENGESAREAS TO IMPROVE: STANDARDIZATION

NIILS: Joint Regulation for ILS Data Model


CHALLENGESAREAS TO IMPROVE: NEW CONSTRUCTIONS

Involvement of the Logistic Inspectorate since the very beginning of the acquisition process

Use the warranty period as well as “training opportunity” for arsenal personnel

Homogenization among all the different Programmes, national and international


CHALLENGES

The spread of logistic culture is important to create innovative behaviour for:

- design analysis and synthesis;

- advance reflections in an integrated overview on the Logistic Support System.

JOINT LOGISTICS SCHOOL

(CEFLI: Joint Logistics Training Center)

AREAS TO IMPROVE: JOINT TRAINING


LOCAL LOCAL INDUSTRYINDUSTRY

NATIONAL NATIONAL INDUSTRYINDUSTRYARSENALSARSENALS

CHALLENGESGREATER INDUSTRIAL INVOLVEMENT

Procurement phase: definition of the logistic support

In service phase: analysis of failures

Navy MUST keep in house capabilities


CHALLENGESGREATER INDUSTRIAL INVOLVEMENT

TECHNOLOGICAL DEVELOPMENT

INNOVATIVE PROJECTUALITY:

Temporary Global Support

Service Level Agreement

Operational Availability

“from development and production organization

… to life cycle management organization”


Needs

Supportability assessment (Ship, System, Equipment)

Logistics Support System assessment

arsenals Industry (national, local)

Treasuring feedbacks into Logistics Support System

Fleet Availability

CHALLANGES

Goals Different support contracts (searching the best

with feedbacks and lesson learned) Identify prime contractor (sole and qualified)

Class of Ships Particular Systems/Equipments

Performance based Logistics contracts (measurable and testable)

Local Industry involvement (efficiency and lower costs)

Transfer of know-how to Arsenals and Local Industry (statements measurable)

Treasuring previous logistics studies Having, knowing, sharing maintenance plans

(levels 3° and 4°: especially when prime contractor is different form design authority)

Logistics Support System “field proven”

(balancing costs-results)

GREATER INDUSTRIAL INVOLVEMENT


ARMY LOGISTIC COMMAND

AIR FORCE LOGISTIC COMMAND

NAVY LOGISTICINSPECOTORATE

CHALLENGES

CARABINIERI FORCE LOGISTIC INSPECTORATE

- Joint Logistics Directive of Chief of Staff of Defence

- PADLI

AREAS TO IMPROVE: DEFENCE COLLABORATION


CHALLENGESAREAS TO IMPROVE: International Collaboration

Working international:

- time consuming

- national practices and rules are not easy to change

- national industrial interests must be considered

- highest level of efficiency

- cost savings

- image


MAINTENANCE CORE BUSINESS

EFFECTIVE INSPECTORATE IMPROVEMENT

EFFECTIVEDEPENDING

BODIES IMPROVEMENT

GREATER INVOLVEMENTIN SUPPORT DEFINITION

INTEGRATEDINDUSTRY

INVOLVEMENTN

AT

ION

AL

NA

TIO

NA

L

LO

CA

LL

OC

AL

OPTIMIZING SYNERGIES

WITH LOGISTC

ORGANIZATIONS

JOIN

TJO

INT

INT

ER

NA

TIO

NA

LIN

TE

RN

AT

ION

AL

CONCLUSIONS

CONSOLIDATED STRATEGY FOR NAVAL SUPPORT


CONCLUSIONS

We seek interoperability by means ofhigh technology and integrated logistics support.

Documents

PROGRAMMES, SUCCESSES AND CHALLENGES FACING LOGISTICS IN THE ITALIAN NAVY