Air Force Materiel Command AFMC Aviation Supply Chain

Air Force Materiel Command AFMC Aviation Supply Chain Update Col Sid Banks Vice Director 448 th Supply Chain Management Wing 8 Apr 08 Integrity Service Excellence 1

Air Force Materiel Command Mission Deliver war-winning… --Technology -- Acquisition Support -- Test -- Sustainment …expeditionary capabilities to the warfighter Vision War-winning capabilities…on time, on cost Guiding Principles One Command…One Enterprise War-Winning Capabilities … On Time, On Cost 2

AFMC Span of Operations Technology Acquisition Testing Sustainment • 4 core mission areas • 10 bases – many sites • 79, 000 AF members • Manage 37% of AF $$$ We deliver & sustain the Nation’s dominance in air, space, & … On Time, On Cost War-Winning Capabilitiescyberspace! 3 3

The Case for Change • Provide Better Support to the Warfighter – Logistics must evolve with the new global expeditionary doctrine • Leverage Recent Advances in Technology & Processes – Current processes are NOT broken, but we can do significantly better • Prepare for an Impending Loss of Intellectual Capital – Large portion of workforce eligible to retire by the end of 2009 – We must increase the skills and flexibility of our remaining workforce • Remain Competitive with Private Industry • Achieve Savings Mandate – In FY 06, the AF supply budget was reduced by $27 M – Through FY 11, the cumulative reduction will exceed $800 M War-Winning Capabilities … On Time, On Cost 4

e. Log 21 Campaign Initiatives PLM Pathfinder Condition-Based Mx Asset Marking & Tracking Demand Reduction Product Support Campaign CBP PFM RE 21 Workforce OSS&E DMT Strategic Sourcing Strategic Distribution Commodity Councils Lean Mx PSCM Dynamic C 2 & Performance Mgmt Goals linked to warfighter and cascaded throughout enterprise Improved TLCSM End to End LC Mgmt Acq/Log/OEM Integration Lean Processes MRO Procurement Acquisition Order Mgmt Optimized Resources Integrated Processes WFHQ/ACS AFSO 21 Anticipatory Management Centralized Enterprise Planning Execute to Plan e. Log 21 Effects Integrated Technology SC-COP Balanced Scorecard Decision Support GCSS Data Services Requirements AFGLSC Requirements CAM RBS HH-60 Log. EA detail review APS Pathfinder e. Log 21 Capabilities Enterprise View Focused Process Initiatives Enablers Change Mgmt e. Log 21 tenets & Log. EA initial review Right Place, Right Time, Every Time e. Log 21 Vision e. Log 21 Goals 20% Increase Equipment Availability = 10% Reduction O&S Costs Expeditionary Combat Support System War-Winning Capabilities … On Time, On Cost 5

On Time Delivery War-Winning Capabilities … On Time, On Cost 6

Acquisition Lead Time War-Winning Capabilities … On Time, On Cost 7

A Glimpse of Future Logistics War-Winning Capabilities … On Time, On Cost 8

Future AF Supply Chain q Total Asset Visibility q Automated Data Entry q A Global Network q Big Picture Planning q Decision Support Tools q Predictive Mgmt q Centralized Financial Mgmt q Optimized Repair q LEAN Practices e. LOG 21 Enabling Key Effects Enterprise View Integrated Processes Optimized Resources Integrated Technology Reach Forward vs. Reach Back = Future AF Logistics War-Winning Capabilities … On Time, On Cost 9

SECAF Memo, 6 Jun 07 established Integrated Life Cycle Management Frame Work MEMORANDUM FOR ALMAJCOM-FOA-DRU/CC SUBJECT: Codifying Service Acquisition Executive (SAE) and AFMC/CC Roles in Integrated Life Cycle Management References: (a) SECAF and AFMC Memo dated 29 Jun 05, Program Executive Officer Realignment-Phase Il-Roles and Responsibilities Clarification (b) CSAF Memo dated 23 Jul 03, Organization for Acquisition With weapon systems remaining longer in our inventory and the recognized need for an increased focus on planned block changes, ourplanning must include strategy …our priorities in acquisition strategy priorities in acquisition planning must include establishing valid requirements and realistic acquisition logistics establishing early in our programs. Developing processes that avoid and technology planningvalid requirements and realistic acquisition logistics and technology planning early in our programs. requirements creep, technology overreach, produce realistic sustainment plans and life cycle cost estimates requires us to adjust our processes and take an Integrated Life Cycle Management view. Support the SAE by reviewing acquisition strategies, Life Cycle Management Plans, Test and Evaluation Master Plans, Technology Readiness Assessments and Programmatic Environment Safety and Occupational Health Evaluation plans to ensure robust enterprisesensitive planning, and will make recommendations supporting all milestone decisions as required throughout the life cycle. Service Acquisition Executive will: - Assume integrating leadership role of life cycle management executive forums being proposed through AFSO 21 and/or D&SWS efforts. This authority may be delegated as appropriate. The integrated life cycle management vision and forums do not alter existing legislated responsibilities and authorities (i. e. USC Title 10, Do. DD 5000, etc. ) that I have previously delegated. For example, the SAE, Senior Procurement Executive (SPE), and Head of Contracting Activity (HCA) responsibilities of the Assistant Secretary of the Air Force for Acquisition remain as codified in law. The SAE is the single civilian official with full-time responsibility for all nonspace Service acquisition functions with the authority, responsibility, and accountability for acquisition program execution and management. For purposes of defining SAE responsibilities, this includes lifecycle acquisition of systems and services processes from pre-Milestone A to weapon systems retirement. This includes research, development, test, evaluation, production and delivery of new systems, or significant modifications to existing systems. Management responsibility flows directly, without intervention, from the SAE and Milestone Decision Authority to the Program Executive Officers (PEOs) to System Program Managers (SPMs). PEO, ALC/CC, System Program Manager, Development System Manager and System Sustainment Manager responsibilities will be established to support this vision. Supported and supporting command relationships will be developed to best support management of each weapon system at all points in the lifecycle. …our priorities in acquisition strategy planning must include establishing valid requirements and realistic acquisition logistics and technology planning early in our programs. The Commander, Air Force Materiel Command (AFMC/CC) is the process owner for the Develop and Sustain Warfighting Systems (D&SWS) process under AFSO 21. Working with the Assistant Secretary of Air Force (Acquisition), they have developed the D&SWS vision of streamlined and integrated life cycle management and conceptualized an executive forum to ensure all key stakeholders can provide advice when a life cycle decision is being made. In support of that vision, this memorandum provides guidance on ILCM responsibilities and directs the establishment of new operating concepts targeted at improving our life cycle management of our weapon system programs. Our intent is to drive an enterprise focus on comprehensive Life Cycle Management, from capability planning through technology development, acquisition, test, and all sustainment activities. In order to achieve this vision, I am revising roles to add the following to those that currently exist. AFMC/CC will: - Support the CSAF and MAJCOM/CCs by recommending phasing and adjustment of requirements to ensure operationally acceptable increments or blocks of capability are fielded in a timely manner. - Support the SAE, CSAF, and MAJCOM/CCs, by monitoring and controlling weapon system requirements baselines from Milestone A to fielding, and will attest to requirements feasibility prior to all Milestone decisions AFMC/CC, as the D&SWS process owner, has full authority to recommend adjustments to processes across the entire life cycle which should be coordinated with all stakeholders with any disconnects arbitrated at the AFSO 21 Process Council. A tighter integration between SAF/AQ, SAF/IE, AF/A 4/7 and AFMC will ensure both the requirements/acquisition strategy mix and processes are congruent throughout the life cycle of our weapon systems. The Assistant Secretary of Air Force (Acquisition), working with Air Force Materiel Command, SAF/IE and AF/A 4/7, will establish the details of new operating philosophy targeted at improving our life cycle management of weapon systems. War-Winning Capabilities … On Time, On Cost 10

Life Cycle Focus Concept Refinement Technology Development System Development & Demonstration Production & Deployment A B C Retire Operations & Support e. Log 21: AFGLSC (ECSS, CAM, RE 21), AFSO 21…Execution Integrated Life Cycle Management “ility” Requirements, Acq-Log Product Support Strategy War-Winning Capabilities … On Time, On Cost 11

War-Winning Capabilities … On Time, On Cost 12