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Spring 2015
Systems Engineering, Part II
Session 18
12 March 2015
Mr. Larry Hopp, CPL
Logistics & Maintenance Support
in the System Life Cycle
• Integrated entity
• One of the subsystems
• Support the system
• Support the life-cycle
• In the beginning……….
• Day to day participation
DAU 5
PBL
• Lexington Institute paper – Dr. Daniel Goure
– Affordable, integrated package based on output
measures such as availability
– Private sector incentivized
• Reduce costs
• Increase availability
6
PBL
• Lexington Institute paper
– 25 years in commercial business
– Power by the hour
• Guarantee minimum number of flying hours for each
engine
– Replace faulty engine within specified time period
– Also used by Caterpillar, Honeywell, Rolls-Royce,
and Allison
7
PBL
• Lexington Institute paper
– Performance outcomes
• Decrease Delivery time
• Decrease Work-in-progress
• Reduce Turn-around times
• Increase Reliability
• Reduced logistics
• Increase Availability of systems
• Reduce overall cost
8
PBL
• Lexington Institute paper
– Secret to Success
– On time deliveries to the field
– Flow of accurate information
• Anticipate demand
• Identify and implement positive changes
• Provide alternative maintenance practices
– Incentive to have continuous improvement
– Reduces government personnel cost
9
PBL
• Lexington Institute paper
– How it works
• Fixed price for desired outcomes
• Buy results – Need the right parameters/metrics
• Provider makes more money when more efficient – self
motivated
10
PBL
• DLA PBL briefing
– Fixed price “pay for performance” contract
motivates vendor to reduce failures & consumption
– Long term commitment enables vendor to balance
risk vs. investment to attain a return on
investments in availability and reliability
DLA 11
PBL
• F/A-18 F404 Engine GE
– Pre PBL
• 43 % availability
• 718 backorders
– Post PBL
• 90% availability
• 0 backorders
• Contract value of $641M
• Cost savings of $90M
DLA 12
PBL
• Navy MH-60 Seahawk Helicopter,
Sikorsky/Lockheed Martin
– 1200 airframe and avionics components
– 530 aircraft
– Inventory accuracy of 99.91%
– Readiness is 92% from 66%
– Backorders from 800 to 0.
– Reduced Logistics Response time by 45 days
– Invested $140M to increase reliability
DLA 13
Figure 15.11 Selected technical performance measures for the logistics and maintenance support infrastructure.
Source: B. S. Blanchard, Logistics Engineering and Management, 6th ed. (Upper Saddle River, NJ: Pearson Prentice
Hall, 2004), Figure 1.11.