LOGISTICS MATURITY EVALUATOR

R E P O R T I R 5 0 9 R 1 · A P R I L 2 0 0 6

J A M E S H . R E A Y A . J E F F R E Y C O L A I A N N I E V E L Y N F . H A R L E S T O N

A M Y M A L E T I C J O H N G . M A R C U S

The views, opinions, and findings contained in this report are those of LMI and should not be construed as an offi-cial agency position, policy, or decision, unless so des-ignated by other official documentation.

Logistics Maturity Evaluator IR509R1/APRIL 2006

Executive Summary

To operate effectively, federal civil agencies should continuously develop new, more integrated logistics systems to acquire, maintain, and deliver needed equip-ment, materials, and infrastructures that are optimized in terms of investment and benefits. Agency managers generally recognize that existing logistics systems are not as effective or efficient as they could be; however, there is no available bench-mark to readily assess current systems without significant investment. The challenge is to reduce the costs of operations and support, increase workforce productivity, reduce costs of managing inventory, and increase the effectiveness of delivering support material and services. To achieve these objectives, the logis-tics systems of each agency should be evaluated to determine how well operations are being supported, whether meaningful improvement initiatives are planned or in place, and what the end cost will be.

LMI wishes to help government logistics managers determine the current state of their logistics processes, prioritize resource application, and identify future direc-tion. To do so, we embarked on a research effort to develop a logistics maturity evaluator (LME). By accomplishing this independent research and development task, we hope to develop LMI’s analytical capability to provide a structured high-level assessment of federal agencies’ logistics status, progress, and proficiency and help agency managers target areas for improving performance and reducing support costs.

The LME borrows heavily from the capability maturity model concept being ap-plied in many organizations to meet management’s need for an unbiased assess-ment tool. Our intention is to develop a repeatable system that gives logistics managers an objective comparison of the present status of their agencies’ business processes and technologies for delivering goods and services.

We completed the first of two phases for this research task. The set of characteris-tics and evaluation criteria we developed can be used as a standard against which managers can measure an agency’s logistics system.

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By applying the LME to logistics organizations, government managers will be able to

determine the current level of their logistics processes in terms of modernization and implementation of improvements and technologies;

identify additional process improvements that may be applicable to their organizations; and,

based on the collective experience of similar organizations, identify likely areas for focusing business process reengineering initiatives to maximize return on investment, with a reasonable expectation of success-ful implementation given the organization’s current level of development.

For the purpose of assessing logistics maturity in government agencies, we devel-oped five progressive maturity levels and identified the characteristics of related business practices within each level, as shown in Figure ES-1.

Figure ES-1. Logistics Maturity Pyramid

Level 1—Initial(Basic practices)

Level 2—ManagedLogistics

Level 3—Tailored Logistics

Level 4—Quantitatively Managed

Level 5—Optimized Integration

Improvementpractices

Operationalexcellence

Organizationalfocus

Logistics skillsdevelopment

Functionalintegration

Costreduction

Qualityimprovement

programAsset

visibility

Itemidentification

Assetmanagement

Distributionand transportation

Materialdisposition

Requirements determination MaintenanceMaterial acquisition

Resourcemanagement

Inventoryoptimization

Systemsmodernization

Metricsanalysis

Supplierrelationship

management

Customerrelationship

management

Balanced scorecard andbenchmarking

Supplychain

integration

Performance-based

logisticsStrategicsourcing

Enterpriseintegration

Strategicplanning and

execution

We can determine an agency’s logistics maturity by asking key logistics person-nel to complete an evaluation questionnaire. Once agency personnel complete the survey, individual scores are aggregated and summarized into an organizational score. The LME process produces graphical representation of the composite rank-ing of the target logistics organization on the level 1–5 maturity scale. Results are compiled and compared with other similar agencies or matched to a private sector counterpart. The final LME report to agency managers includes key conclusions and suggestions for next steps.

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Executive Summary

This report presents the results of our research in Phase I and the products in-cluded in the LME. In Phase II, we plan to test the LME capability with data ob-tained from selected government civil agency logistics managers and personnel.

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Contents

Chapter 1 Introduction to Logistics Maturity..............................................1-1

CHARACTERIZATION OF LOGISTICS MATURITY.............................................................. 1-1

VALUE OF ASSESSING LOGISTICS MATURITY ............................................................... 1-2

Chapter 2 Capability Maturity Models .......................................................2-1

Chapter 3 Applying CMM to Logistics .......................................................3-1

Chapter 4 Maturity Levels in Government Logistics..................................4-1

MATURITY LEVEL 1.................................................................................................... 4-2

MATURITY LEVEL 2.................................................................................................... 4-2

MATURITY LEVEL 3.................................................................................................... 4-3

MATURITY LEVEL 4.................................................................................................... 4-3

MATURITY LEVEL 5.................................................................................................... 4-4

Chapter 5 Our Approach to a Logistics Maturity Evaluator .......................5-1

Chapter 6 Maturity Model Assessment Questionnaire..............................6-1

EVALUATING THE LME ASSESSMENT RESULTS............................................................ 6-2

Preliminary Contact with Agency Personnel ...................................................... 6-3

Using the Questionnaire .................................................................................... 6-3

Scoring .............................................................................................................. 6-4

SUMMARY ASSESSMENT ............................................................................................ 6-4

Chapter 7 Results of IR&D Project and Future Plans ...............................7-1

RESULTS .................................................................................................................. 7-1

FUTURE PLANS ......................................................................................................... 7-1

Appendix A Logistics Maturity Evaluator Survey

Appendix B Letter of Understanding

Appendix C Initial LME Survey

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Figures Figure 1-1. Components of Logistics Maturity......................................................... 1-1

Figure 2-1 Capability Maturity Model ...................................................................... 2-2

Figure 2-2. Staged Versus Continuous Representation.......................................... 2-3

Figure 3-1. Applying CMMI Concepts to Logistics Organizations ........................... 3-2

Figure 5-1. Logistics Maturity Pyramid.................................................................... 5-1

Figure 6-1. Sample Composite Ranking of Logistics Maturity................................. 6-5

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Chapter 1 Introduction to Logistics Maturity

By developing a logistics maturity evaluator (LME), LMI hopes to augment our analytical capability to provide a structured, high-level assessment of the logistics status, progress, and proficiency of federal agencies and to help agency managers identify areas for improving performance and reducing support costs. Our inten-tion is to develop a repeatable procedure that allows logistics managers to objec-tively compare their organizations’ business processes and technologies with a targeted, optimized, and integrated logistics operation. The comparison should help managers determine where to place emphasis and resources to achieve higher levels of customer service.

CHARACTERIZATION OF LOGISTICS MATURITY There are two phases of our planned approach to the LME development task. In Phase I we developed a set of characteristics and evaluation criteria that can be used as a standard against which to measure an agency’s logistics process infra-structure.1 As a first step, we identified the basic elements that characterize logis-tics maturity. These are shown in Figure 1-1.

Figure 1-1. Components of Logistics Maturity

Thecomponentsof logistics

maturity

Visionand

strategies

Technologyenablers

Logistics

processes

Organization

and

workforce

Reso

urce

s

Perfo

rman

ce

1 Our development work was influenced by the Software Capability Maturity Model (SW-CMM)

concept developed by the Software Engineering Institute at Carnegie-Mellon University. The CMM is addressed in Chapter 2.

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We then identified maturity levels, incorporating basic and improved logistics processes and business practices that—at the highest level of maturity—lead to the optimized integration of an organization’s overall logistics system. To gather information regarding a logistics organization’s current status, we developed an assessment questionnaire that would quantify the level of logistics maturity. Our questionnaire incorporates the basic components of logistics maturity. Details of this research are discussed in subsequent chapters.

In Phase II of the LME project, we will exercise the LME capability in live tests with selected government agency logistics managers and personnel.

VALUE OF ASSESSING LOGISTICS MATURITY An organization’s processes define how it works. They produce the desired results and provide the mechanism to incorporate knowledge, use capabilities, leverage resources, and ultimately do things better.

There is a common misconception that improved results are a certainty if an or-ganization has really good people, access to advanced technology, and motivated, experienced managers. This notion is, at best, naive. Although people and tech-nology are essential to achieving organizational objectives, process improvement is equally critical. Private sector organizations can ultimately look at profit-and-loss statements to measure success. Government activities do not have an equally objective measure of results or progress toward organizational goals. The pursuit of initiatives is often disjointed or fragmented; yet, government managers are con-tinuously asked to assess progress, make improvements, and become more effi-cient and effective.

Unfortunately, process improvement initiatives in government activities are often ignored or even feared by the managers charged with achieving organizational goals and objectives. Such managers often focus on one aspect of improvement (such as workforce training or technology application) without seeing the integrat-ing function accomplished by the organization’s business processes. They equate the term “process” with bureaucracy, inertia, regimentation, and added up-front costs. Conversely, these managers—under pressure for results—sometimes initi-ate process change without a clear understanding of the associated process, tech-nology, and workforce in attaining long-term direction or end-state goals.

In process-oriented areas like logistics, failure to begin with an integrated “big picture” view of functional elements inevitably leads to failed efforts and wasted resources. To help government logistics managers determine the current state of their logistics processes, prioritize resource application, and identify meaningful future direction, LMI embarked on this independent research effort to develop a logistics maturity evaluator. The LME borrows heavily on the capability maturity model concept applied by many organizations around the world to meet manage-ment’s need for an assessment tool.

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Introduction to Logistics Maturity

As part of the movement in government to make functional processes more effi-cient and effective, managers are often charged to analyze and adopt private-sector practices to rapidly improve and modernize key processes like logistics. Once national leaders in logistics management, government organizations have fallen behind in the last several decades in implementing innovative processes, methods, and enabling technologies. As costs escalate and agencies downsize, government organizations have lost the analytical capability and technical knowl-edge to effect large-scale improvements. Outsourcing of process improvement implementation and, more directly, modernization of automated systems is now the only option for government managers who seek significant process improve-ment. But these managers must first assess the current status and establish the or-ganization’s strategic direction before committing large-scale resources to any particular improvement path.

In the area of logistics, the private sector has already committed to substantial re-search, innovation, business process reengineering, and technology development and implementation. Many of these private-sector efforts have important application in the public sector, but government managers often are faced with too many “solu-tions,” rather than too few. These managers will find the LME useful as they attempt to apply, leverage, and prioritize scarce process implementation resources so the maximum improvement is obtained for a finite level of investment.

Using the LME, managers can select appropriate process improvement tools and initiatives that have proven successful in both private sector and government applications and that are most applicable to their specific organizational needs.

Application of the LME to logistics organizations will allow government managers to achieve the following:

With a modest analytical effort, determine the current level of their logis-tics processes in terms of process modernization and implementation of emerging improvements and technologies.

Identify additional process improvement areas that may be applicable to their organization.

Based on the collective experience of similar organizations, identify likely areas for business process reengineering initiatives to maximize return on investment, with a reasonable expectation of successful implementation given the organization’s current level of development.

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Chapter 2 Capability Maturity Models

Improving the end results or attaining the prescribed goals has become an intrinsic objective of nearly every organization. When an enterprise wishes to improve re-sults, it typically focuses on three factors: people, processes and methods, and technology. Processes and methods generally provide the capability to optimize available people and technology to improve output. Manufacturing industries have long recognized that improving processes is an important way of meeting business objectives. In service-oriented industries, such as logistics, process im-provement is also accepted as a means to better results. Unfortunately, process change is difficult to define and implement because the desired objectives may be imprecise.

Government managers must move their agencies toward improved results in a structured manner, with well-defined steps and quantifiable targets. This approach permits more effective course adjustment and interim measurement of success. A meaningful plan of action and milestones is essential to an effective improvement plan; however, organizations often are not well-versed in the process of effective planning, and the home-grown action plan is often replete with false starts, non-essential milestones, and dead-end activities. One approach to avoiding these pit-falls is to learn from the mistakes of others and adopt courses of action that have been validated by previous efforts. Today, through the application of various auto-mated process analysis tools, we can document, track, and assess process improve-ment activities in ways previously considered too cumbersome and overly resource intensive. One such technique is a capability maturity model (CMM).

What is a capability maturity model? Stated simply, it is a structured way to de-termine the levels or extent of an organization’s process capabilities. Within the model, organizational progress is expressed in terms of the degree of maturity, that is, from ad hoc, immature processes to disciplined, mature processes with improved quality, efficiency, and effectiveness. The model describes an evolu-tionary improvement path that documents the organization’s progress from one maturity level to the next higher level.

Current CMMs often use the convention of five maturity levels—from least mature (level 1) to most mature (level 5). These maturity levels are defined based on the competency achieved as an organization implements specific process improve-ments. For example, an organization may achieve maturity level 1 by automating

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tasks that previously were accomplished manually. Higher levels of maturity are attained as the organization integrates processes across organizational lines.1

By recognizing and using the maturity level definitions built into the model, man-agers can more easily determine the degree of process improvement being achieved. CMM usually includes an increasing scale, as shown in Figure 2-1.

Figure 2-1 Capability Maturity Model

Immature

Fullymature

Maturity level 1: Efforts typically are ad hoc and not integrated

Maturity level 5:Organizationhas achievedits process goals, and is continually improving them

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4

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The first CMM model, Software CMM (SW-CMM), was developed in the early 1990s by the software community under the stewardship of the Carnegie-Mellon University’s Software Engineering Institute (SEI). The Department of Defense funded this effort and continues as a principal participant in CMM development. To-day, SEI retains oversight of CMM development efforts worldwide, acting as a cen-tral clearinghouse and model repository for CMM information, providing a standard approach for appraising proposed capability models, and conducting CMM training and seminars. SEI has also led the evolution of CMM to a broader scope by integrat-ing capability maturity models across such disciplines as systems engineering, inte-grated product development, and acquisition. This effort to apply capability models across disciplines is called capability maturity model integration (CMMI).

There are two approaches to developing and using capability maturity models: staged representation and continuous representation. Either approach can help managers assess the level of maturity currently achieved in an organization or the level targeted for the future.

Staged representation is a more holistic approach in which the CMM evaluation focuses on the level of maturity attained for the full range of processes for the organization. This approach is often used when man-agement wishes to determine the maturity level of the entire organization for a given discipline. We incorporated the staged representation approach into the LME.

1 We describe specific maturity levels that we adopted for use in the LME in Chapter 4.

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Capability Maturity Models

Continuous representation measures maturity levels separately for indi-vidual processes within a discipline. In this case, management can focus on individual areas and apply priority attention to processes that may be problematic or are likely candidates for near-term improvement.

Regardless of which representation is used, the same basic evaluation criteria are applied to assess level of maturity. Figure 2-2 illustrates the two approaches to CMM representation.

Figure 2-2. Staged Versus Continuous Representation

1

2

3

4

5

Mat

urity

leve

l

Staged…for an established set of process areas across an organization

0

1

2

3

4

5

Proc

ess

area

cap

abilit

y

PA PA PA

Continuous…for individual process areas across an organization

Measures overall maturity Measures process maturity

Although the majority of CMM implementations are in the private sector, the concept has been applied to government activities. For example, the Federal Aviation Administration has instituted an extensive CMM program as a basis for business process reengineering across the agency. The Department of Defense developed an acquisition CMM for application to military weapons and equipment programs.

Our research indicates there is noteworthy similarity between target processes in the private sector and government activities. In later chapters, we focus on the po-tential for use of the CMM concept in the LME as a process evaluation and im-provement tool particularly for federal civil agencies.

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Chapter 3 Applying CMM to Logistics

As described in Chapter 2, the concept and application of capability maturity models is well documented and a widely accepted analytical technique. Our re-search effort, therefore, focused on the application of the CMM method.

In this IR&D task, we addressed three specific analytical perspectives:

The application of the CMM approach to the area of logistics

The construction of a less-complex approach to CMM that would be at-tractive to federal government civil agency senior managers

An assessment method tailored to government logistics organizations.

Our research identified a number of functional areas (in both the private and pub-lic sectors) in which CMM had been applied. By using the repository of informa-tion available on the Software Engineering Institute website,1 we were able to determine that no previous CMM efforts had focused on government logistics.

Our research also indicated that a CMM approach could be a useful tool for gov-ernment managers to assess the level of development and status of their logistics organizations and processes. Use of CMM requires

a well understood set of business functions or activities,

accepted business process improvement practices that are recognized by functional managers as essential to achieving organizational objectives, and

an acceptable, viable method for accomplishing maturity level assessment.

The members of our research team have extensive expertise in the full range of functions and activities that comprise the logistics process within government and the private sector. We were able to readily document the scope of logistics func-tions that should be incorporated into a logistics maturity evaluator.

Our team also had access to a wide body of reports, research papers, web-based documentation, and other sources, which permitted us to compile a comprehensive list of logistics-oriented business process improvement practices. We were able to include in our assessment tool a range of generally accepted improvement approaches that could help assess the maturity of an organization being evaluated.

1 SEI website is http://www.sei.cmu.edu/cmmi/.

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Developing an acceptable way to assess maturity was the most difficult element of our research project. Although we began with a reasonably good knowledge of gov-ernment logistics functions and generally accepted business improvement practices, it was not clear whether the CMM approach espoused by SEI and the documented CMM implementation guidelines2 were applicable for most civil agency logistics organizations. The characteristics of a classic CMM assessment appeared to be unac-ceptable for many potential civil agency logistics clients. As an example, prior CMM efforts have been time consuming, manpower intensive, and expensive. As a result, agency managers may not be anxious to embark on a full CMM assessment. There-fore, our research challenge was to construct a logistics maturity evaluation approach that incorporated the essential elements and discipline of the CMM, but required only a limited resource commitment, which is more attractive to agency managers.

Further, a rigid application of existing CMM methodology requires substantial documentation of an organization’s individual business processes with a high level of detail. Such effort may yield significant detailed information regarding the day-to-day functioning of organizational processes, but most government managers would rather obtain a more summarized assessment of their organiza-tion’s maturity status—at least initially—in order to focus on an incremental and evolutionary process improvement initiative. Figure 3-1 presents the basic re-search steps we took to develop and accomplish a logistics maturity evaluation.

Figure 3-1. Applying CMMI Concepts to Logistics Organizations

Identifylogistics and

related components

Prepareassessment

questionnaires

Describecharacteristics

of logistics maturitylevels

Identifykey

improvementpractices

Complete“test”

assessments

Documentresults

The classic CMM method requires a periodic recertification of assessment results. Our research approach attempted to apply the basic CMM concept while provid-ing a “snapshot” assessment and initial focus on a summary level of detail and assessment.

The remaining chapters of this report describe the research accomplished to com-plete the steps shown above.

2 Mary Beth, Chrissi et al., CMMI: Guidelines for Process Integration and Product Improvement,

Addison-Wesley Publications, September 2004.

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Chapter 4 Maturity Levels in Government Logistics

Based upon our research, we can identify six fundamental components of logistics maturity:

Vision and strategy

Organization and workforce

Resources

Technology enablers

Logistics processes

Performance.

We took logistics maturity to mean the capability of an agency to execute logis-tics practices in a manner satisfactory to its customers. It is not necessary for an agency to be the best in the world or even the best in its class (although that is al-ways a desirable objective) to reach the summit of maturity. We are mindful that civil agencies, in particular, are routinely under tight personnel and funding con-straints. It is impractical to expect them to be the leaders in the execution of mod-ern logistics initiatives, but it is quite reasonable to expect them to adopt such initiatives and execute them well enough to meet the needs of their customers, notwithstanding their organizational constraints.

Logistics maturity within an agency begins with a clear vision and articulation of who the customers are and what they need in the way of support. Coincidental with the vision is a strategy to align available resources (people, processes, tech-nology, and dollars) to meet that need. Next, the people in the workforce must be organized and given the training and leadership necessary to fulfill their responsi-bilities. The workforce also must have sufficient resources. The cliché, “doing more with less,” is not a long-term strategy for success.

Finally, logistics maturity must consider availability and application of technol-ogy enablers, such as information systems and communication devices and net-works that are sufficiently modern to do the job; logistics policies and processes that are documented, understood, and enforced; and metrics that give workers and managers alike a true picture of the outcome of their efforts.

For the purpose of assessing logistics maturity in government agencies, we devel-oped the following descriptions of the five progressive maturity levels.

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MATURITY LEVEL 1 A maturity level 1 organization typically operates on an ad hoc basis. The organi-zation rarely provides a stable environment. Processes are performed, but not in accordance with set corporate goals and objectives. Success in these organizations often depends on the competence of people in the organization, and success can-not be repeated unless the same individuals are assigned to the next project.

At the initial level of logistics maturity, an organization will, at a minimum, ac-complish seven basic practices:

Material acquisition

Requirements determination

Maintenance

Item identification

Asset management

Distribution and transportation

Material disposition.

MATURITY LEVEL 2 At maturity level 2, an organization’s logistics components are planned, docu-mented, performed, monitored, and controlled at the project and process level. To advance to level 2 of logistics capability, which we call managed logistics, an agency would be expected to perform nine tasks competently:

Logistics skills development

Asset visibility

Functional integration

Quality improvement

Cost reduction

Resource management

Inventory optimization

Systems modernization

Metrics analysis.

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Maturity Levels in Government Logistics

MATURITY LEVEL 3 At maturity level 3, logistics components are tailored from the organization’s set of standard processes and related organizational assets to suit the circumstances in which they will be performed. At maturity level 3, processes are well character-ized and understood, and are described in policies, standards, procedures, tools, and methods.

By level 3, tailored logistics, an agency practices the following:

Supply chain integration

Strategic sourcing

Performance-based logistics

Supplier relationship management

Balanced scorecard and benchmarking

Customer relationship management.

MATURITY LEVEL 4 Organizations that achieve maturity level 4 are managing logistics components using statistical and other quantitative techniques. Quantitative objectives for product quality, customer service quality, and process performance are estab-lished and used as management criteria. Product quality, service quality, and process performance are understood in statistical terms and are managed through-out the life of processes.

At level 4, an agency’s organizational focus is on

enterprise integration and

strategic planning and execution.

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MATURITY LEVEL 5 At maturity level 5, an organization has achieved all of the goals of the preced-ing maturity levels. Logistics components are fully integrated and continually improved based upon the organization’s understanding of the common causes of performance, cost, and customer satisfaction variations inherent in these logis-tics components. Level 5, optimized integration, is the target end state. Opera-tional excellence is achieved at this highest maturity level. Of course, a lot of management attention, resources, and time must be expended to reach level 5.

Maintaining level 5 status over time is equally difficult. Customer needs are al-ways changing, and logistics organizations must continually gauge what the requirements are and adjust their attention accordingly.

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Chapter 5 Our Approach to a Logistics Maturity Evaluator

The basic functions in any logistics organization include material acquisition, requirements determination, maintenance, item identification, asset manage-ment, distribution and transportation, and material disposition. These functions form the base of the logistics maturity pyramid (level 1) shown in Figure 5-1.

Levels 2–5 are composed of improvement practices at increasing levels of diffi-culty, complexity, and potential benefit. An organization may perform some or all of the practices internally, or it may choose to serve as overseer and outsource the work to another government or private sector organization.

The core of the LME is a questionnaire that was developed to help government agency executives assess the maturity level of their logistics organization with a minimum initial investment of time and money. We can determine an agency’s logistics maturity by asking key logistics personnel to complete the questionnaire. Survey participants must be thoroughly familiar with functions and practices within their organization.

Figure 5-1. Logistics Maturity Pyramid

P A G E 2

Level 1—Initial(Basic practices)

Level 2—ManagedLogistics

Level 3—Tailored Logistics

Level 4—Quantitatively Managed

Level 5—Optimized Integration

Improvementpractices

Operationalexcellence

Organizationalfocus

Logistics skillsdevelopment

Functionalintegration

Costreduction

Qualityimprovement

programAsset

visibility

Itemidentification

Assetmanagement

Distributionand transportation

Materialdisposition

Requirements determination MaintenanceMaterial acquisition

Resourcemanagement

Inventoryoptimization

Systemsmodernization

Metricsanalysis

Supplierrelationship

management

Customerrelationship

management

Balanced scorecard andbenchmarking

Supplychain

integration

Performance-based

logisticsStrategicsourcing

Enterpriseintegration

Strategicplanning and

execution

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Logistics managers strive to move their organizations up the pyramid from basic functions (level 1) to optimized integration (level 5). This upward movement means passing through each set of improvement practices identified at levels 2–4 to reach level 5.

Each practice within a level must be performed to the satisfaction of the organiza-tion and its customers before upward movement can occur. Specific answers within the assessment questionnaire are gauged to determine this degree of satisfaction. This means an organization cannot jump from level 1 directly to level 3 simply be-cause it is performing all of the level 1 functions as well as strategic sourcing at level 3. All the level 2 practices must be achieved effectively (e.g., logistics skills development, asset visibility) before moving on to level 3. However, our assess-ment approach does not require an organization to perform each practice within a level with the same degree of competency. For example, an organization may be exceedingly good at level 2 cost reduction and metrics analysis, but only satisfac-tory at quality improvement and systems modernization. Such an organization would meet the test of acceptability if each practice was being performed at least satisfactorily.

We assess an agency’s logistics maturity by administering the evaluation ques-tionnaire to key logistics personnel. Once agency personnel have completed the survey, individual scores are aggregated and summarized into an organizational score. The scoring system is constructed so that no maturity levels can be skipped. The acceptable score for one maturity level has to be attained before an organiza-tion can be rated at the next higher maturity level.

The research team developed a list of evaluation questions for the questionnaire, with five possible answers for each question. Both the questions and answer choices are weighted. The weight of each question is based upon the level of the logistics function within the logistics maturity pyramid. The levels are assigned weights of 1 to 5, with 5 being the highest level of maturity—or the greatest weight. The responses are similarly weighted with the most mature practices as-signed a weight of 5.

An individual’s response to a question receives a score equal to the question weight multiplied by the weight of the chosen answer. The scores are averaged for each pyramid function and practice area, then summed across pyramid areas for a final score for each logistics component. Scores are rounded down to the nearest whole number to determine the maturity level reached for each component.

The components of logistics maturity are given equal weight, but an organization cannot get credit for a maturity level unless the minimum level score is met for all components. This means the minimum level score reached across all components is the overall maturity level for the individual component.

As an example of the scoring process, one organization could be assessed at a 2.7 capability level with another organization assessed at a 2.1 level, yet both

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Our Approach to a Logistics Maturity Evaluator

organizations are considered to be at level 2. The higher numeric score does not entitle an organization to assume level 3 performance. The organization remains at level 2 until it attains a satisfactory score for all level 3 practice area requirements before moving up to that level.

Of course, organizations can institute process improvement initiatives at any time for functions within any maturity level. Under the LME assessment, however, these organizations would not be scored at the higher maturity level until all func-tions or practices at lower levels are scored as satisfactory. This means an organi-zation cannot “leapfrog” to a higher level. Such action works to the detriment of the maturity assessment concept as it attempts to improve an organization’s per-ceived score before the necessary infrastructure is in place to support widespread, permanent improvement.

Managers should understand that to attempt to advance prematurely to higher ma-turity levels jeopardizes the stability and effectiveness of existing improvements because the foundation for their successful institutionalization has not been com-pleted. Our LME scoring is conservative because attempting to implement im-provements without proper foundation may cause performance failure at the very point they are needed most—under stress.

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Chapter 6 Maturity Model Assessment Questionnaire

One of the most difficult aspects of evaluating an organization’s maturity status is devising an assessment approach that comprehends a meaningful scope of the process areas and includes understandable and quantifiable evaluation criteria at the same time it is easily used by a broad range of knowledgeable participants.

Under the classic CMM method, teams of analysts often work up and down the chain of command and operation to document, in great detail, the existing proc-esses, methods, and technologies in place or planned for the organization. Al-though this approach can yield a very accurate and detailed description of the level of activity and progress in the organization, it has the disadvantage of being costly and time consuming. Further, such an analysis often becomes bogged down in the details of operations and initiatives, and may not produce sufficient “big picture” actionable information.

The details of an organization’s existing and planned improvement efforts ulti-mately must be assessed to determine the level of success and identify course cor-rections when they are needed. There also is great value—particularly for senior managers—in knowing the overall status of the organization’s processes and busi-ness process improvement initiatives. Such information is essential for evaluating potential improvement alternatives against generally recognized criteria and benchmarks, particularly as they are demonstrated in “world-class” organizations or activities. Having a formal, useful evaluation process reduces the subjective nature of the decisions and increases the probability of selecting business im-provement solutions that meet the demands of organizational stakeholders and customers.

The core of the LME is the questionnaire that was developed to permit govern-ment executives to assess the maturity level of their logistics organization with minimal initial investment in time and resources. Building on the broad range of analytical research already accomplished by LMI personnel over the past several years, our LME team identified the basic subject matter that must be incorporated into the functional scope of the evaluation tool. This scope incorporates the func-tions, practices, and improvement areas included in the logistics maturity pyramid discussed in Chapter 5.

Our research challenge was to develop a mechanism that sufficiently differenti-ated a range of capabilities that characterized the distinctive level of maturity or improvement progress for each functional topic. At the same time, our evaluation tool had to be a “stand-alone” vehicle, requiring minimal explanation or descrip-tion. To satisfy these requirements, the team developed a 173 question survey that

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incorporated the 26 functional elements of our logistics maturity pyramid. The survey is multiple-choice, with five possible answers for each question. Answers range from A to E, with question “A” answers relating to the highest maturity level and “E” responses relating to the lowest level of maturity. Respondents are advised to answer questions truthfully and accurately for their organizational cir-cumstances, and not try to outwit the system.

The following is a sample survey question.1 Agency participants in the LME sur-vey choose the answer that best characterizes their organization.

Our agency’s approach to reutilization of unneeded equipment and material assets is:

A. Our agency has official rules and processes in place to ensure that material no longer required by the owning/using organization is of-fered for reuse to all other organizations within the agency.

B. Our agency has official rules and processes in place to ensure that material no longer required by the owning/using organization is of-fered to some organizations within the agency.

C. Our agency does not have official rules and processes but as a general practice the owning/using organization offers material no longer required to all other organizations within the agency.

D. Our agency does not have official rules and processes but as a general practice the owning/using organization offers material no longer required to some organizations within the agency.

E. Our agency has not issued material disposition guidance, either officially or unofficially.

EVALUATING THE LME ASSESSMENT RESULTS As described earlier, an LME assessment is equally useful in focusing management attention on specific process improvement target areas and assessing the overall maturity level across an organization’s full range of logistics processes. By summa-rizing the results of the LME questionnaire, we can document for agency managers the status of awareness, priority, and implementation of a series of widely accepted process improvement initiatives across the full spectrum of common logistics func-tions. This documentation captures the collective knowledge and experience of the logistics practitioners within the organization being assessed.

To ensure a valid evaluation of an agency’s logistics maturity level, the LME process follows a series of steps that foster full understanding of the process and a disciplined execution of the evaluation mechanism.

1 A copy of the full survey questionnaire is provided under Appendix A. The automated LME

product is on the CD enclosed with this report.

6-2

Maturity Model Assessment Questionnaire

Preliminary Contact with Agency Personnel As part of the LME process, LMI personnel make initial contact with senior agency managers to explain the concept, process, and expected benefits of our logistics maturity evaluator. An initial briefing acquaints senior managers and other appropriate agency staff with the LME approach and elicits their feedback regarding the applicability and need for such an evaluation at that agency.

The agreement between LMI and agency management is formalized in a letter of understanding (LOU) that documents the relationship and responsibilities of the participating parties.2 Agency managers are then asked to complete a preliminary survey to help determine the basic profile of the logistics organization, re-sources, and processes.3 After evaluating this profile, LMI works with the agency to identify a number of key logisticians who represent the organization’s most sig-nificant logistics activities (such as mission critical logistics providers or high dol-lar programs) to participate in the LME evaluation session. LMI personnel then meet with the potential recipients of the LME survey to make them aware of the purpose, required actions and how the LME results will be provided to the agency. Considerations such as nondisclosure, anonymity, confidentiality, and potential uses of the evaluation results are addressed.

Using the Questionnaire Agency senior managers approve the application of the LME and identify personnel who will be tasked to respond to the LME assessment questionnaire. LMI personnel oversee the completion of the LME questionnaire, which can be administered at the agency worksite or at an LMI facility, depending on the preference of agency management.

The questionnaire is automated to facilitate both the entry of responses by agency personnel and the tabulation of scores. The LME tool actually is a system of data-bases. Responses are collected from participants, and the central database or-ganizes the responses and aggregate results for different groups. The LME tool collects each participant’s answers in a Microsoft Access database. Because the form opens automatically, the inner workings of the database are transparent to participants.

2 An example of this LOU is provided as Appendix B. 3 A copy of this initial survey is at Appendix C.

6-3

Each user follows a series of simple steps to complete the survey:

Enter agency, department, and job title (for tracking purposes).

Choose the appropriate answer for each question using the radio buttons labeled A through E. The questions are numbered and organized according to the logistics maturity pyramid.

Navigate through the list of questions using the arrows at the bottom of the form.

Click the “Survey Complete” button when finished.

Click the stop sign button to exit the survey before all questions have been answered.

Click the “Print Your Responses” button to print a report showing the questions and answers selected.

Click “Exit LME” to exit the tool.

The responses are saved in a table within a separate database, and the scores are calculated.

Scoring Once all questionnaires are completed, manually entered forms (if used) are tran-scribed into the automated system for tabulation. The results are then scored and summarized, as described in Chapter 5.

All responses to the LME questionnaire are compiled in a central database, which organizes responses from multiple individuals and reports results across and within groups (for example, agencies or departments). A table containing the scores from each questionnaire is then linked to this central database. Once the individual responses are averaged, reports and graphs can be displayed.

SUMMARY ASSESSMENT After scoring is complete, the computed results are formatted into a report for presentation to agency officials. LMI compiles and analyzes survey responses to determine the status of improvement practices within the logistics components, quantify the organization’s logistics maturity, and create an organizational logis-tics maturity evaluation profile. Results are compared to those of similar agencies or matched to private sector experience. The final report to agency managers in-cludes summaries of responses by logistics practice and other groupings, key con-clusions, and suggestions for next steps.

6-4

Maturity Model Assessment Questionnaire

Consistent with the CMM concept discussed earlier, the LME process produces an overall figure that graphically represents the composite ranking of the target logistics organization on the maturity level 1–5 scale. Scores are compiled for each of the six components of logistics maturity and an overall maturity level as-signed. As Figure 6-1 illustrates, agency management can easily see their total maturity level score and the corresponding highs and lows that affect their overall ranking.

Figure 6-1. Sample Composite Ranking of Logistics Maturity

1

2

3

4

5

PerformanceLogistics process

Technology enablers

ResourcesOrganization and

workforce

Vision and

strategies

Mat

urity

leve

ls

Overall maturity

level

6-5

6-6 6-6

Chapter 7 Results of IR&D Project and Future Plans

RESULTS The LME development team completed the initial phase of the research effort and produced a working version of a logistics maturity analytical assessment tool. The LME was developed for use by senior logistics managers in government agencies who desire an initial assessment of the status of their ongoing organic or con-tracted logistics support programs and initiatives.

As described earlier, the LME builds on the concept of the CMM developed by Software Engineering Institute of Carnegie-Mellon University. The LME is a streamlined version of the CMM approach; it uses a comprehensive questionnaire to obtain information from key logistics personnel in the government activity be-ing assessed. This evaluation approach uses the inherent expertise of agency per-sonnel to document the logistics maturity of the organization.

The assessment questionnaire was compiled based on the collective logistics experi-ence and knowledge of the LMI development team. It covers the full spectrum of lo-gistics functions and best practice initiatives from both government and the private sector. Questionnaire responses are weighted based on criteria developed for the pro-ject to determine the maturity level for each logistics area and the results are arrayed for the 26 areas characteristic of logistics organizations.

Selected agency personnel may complete the questionnaire using an automated system or hard copy. Results are then summarized and documented graphically for presentation to senior agency officials.

FUTURE PLANS As we approached Phase II of our work—the application of the LME—we were encouraged in our informal conversations with several Department of Homeland Security (DHS) managers who indicated they would be interested in testing LME. The department’s logistics operations consist of a patchwork of legacy processes and systems representing the 22 different federal organizations that were brought under the new DHS organization created by Congress in November 2002.

It is not surprising that the processes and systems of the 22 DHS organizations—which were developed independently—are not integrated. Although logistics has not been consistently defined at the departmental level, it is the commonly applied label for material management processes and systems throughout DHS.

7-1

Still, DHS has no consistent way of evaluating the overall logistics process com-ponents. As is true in a number of civil agencies, logistics is defined differently in each DHS organization, and some organizations do not have a separately struc-tured logistics element, even though the agency, as a whole, has significant logis-tics responsibilities. The scope of logistics may vary from administrative support at headquarters level to major warehousing and repair activities. Therefore, it is often impossible for managers to know which areas require particular attention. Further, managers need to know which of the seemingly similar processes and systems are more advanced and capable than the others, and which should be revamped or retired and replaced.

The LME team is pursuing another opportunity to test the LME with the Federal Supply Service of the General Services Administration. This organization has numerous logistics improvement initiatives underway and appears to be a viable target for demonstrating the value of the LME as an assessment tool. The LME development team plans to continue to pursue opportunities to validate the tool in several target civil agencies.

7-2

Appendix A Logistics Maturity Evaluator Survey

We developed a comprehensive LME questionnaire to help government execu-tives assess the maturity of their logistics organization. The challenge was to de-velop a survey that sufficiently differentiated between the capabilities that characterize each level of maturity.

The resulting evaluation tool is a “stand-alone” vehicle, requiring minimal expla-nation or description. There are 173 questions that incorporate the 26 functional elements of our logistics maturity pyramid. Survey participants choose among five possible answers (A to E).

Respondents are advised to answer questions truthfully and accurately for their organizational circumstances, and not try to “outwit” the system.

A-1

DRAFT—[Click here and type report #)] —5/1/06 A-2 IR509R1_A-app_BANNER.doc DRAFT—[Click here and type report #)] —5/1/06 A-2 IR509R1_A-app_BANNER.doc

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d ac

quire

d fo

r all

orga

niza

tions

.

DD

- E

ach

orga

niza

tion

fore

cast

s re

quire

men

ts

and

acqu

ires

need

ed

EE

- W

e se

nd a

pur

chas

e re

ques

t to

the

proc

urem

ent o

ffice

A-5

Logi

stic

s M

atur

ity E

valu

ator

13Ar

e fu

ndin

g re

quire

men

ts fo

r maj

or a

sset

s re

flect

ed a

s lin

e ite

ms

in th

e an

nual

bud

get?

Pyr

amid

Are

a:A

sset

Man

agem

ent

AA

- A

sset

requ

irem

ents

are

sys

tem

atic

ally

de

velo

ped,

det

aile

d in

the

annu

al b

udge

t, an

d av

aila

ble

for s

enio

r man

agem

ent r

evie

w.

BB

- A

sset

requ

irem

ents

are

dev

elop

ed a

nd

subm

itted

in a

n an

nual

bud

get b

ut n

ot it

emiz

ed

or v

isib

le to

sen

ior m

anag

emen

t.

CC

- O

ur b

udge

ts d

escr

ibe

our r

equi

rem

ents

bu

t do

not b

reak

out

indi

vidu

al m

ajor

ass

et

cate

gorie

s.

DD

- W

e do

not

dev

elop

fund

ing

requ

irem

ents

fo

r maj

or a

sset

s in

our

ann

ual b

udge

ts.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

14O

ur o

rgan

izat

ion

uses

an

asse

t man

agem

ent s

yste

m th

at

incl

udes

the

follo

win

g fu

nctio

nalit

y or

inte

rface

s.

Pyr

amid

Are

a:A

sset

Man

agem

ent

AA

- A

cqui

sitio

n, c

onfig

urat

ion

man

agem

ent,

mai

nten

ance

, acc

ount

abili

ty, s

uppl

y, h

uman

re

sour

ces

and

finan

ce.

BB

- A

cqui

sitio

n, m

aint

enan

ce, a

ccou

ntab

ility,

an

d fin

ance

.

CC

- A

cqui

sitio

n, a

ccou

ntab

ility

and

fina

nce.

DD

- A

ccou

ntab

ility

and

finan

ce.

EE

- Fi

nanc

ial A

ccou

ntab

ility

onl

y

Logi

stic

s M

atur

ity E

valu

ator

15O

ur o

rgan

izat

ion

has

an e

nter

pris

e w

ide

mat

eria

l dis

tribu

tion

and

trans

porta

tion

plan

Pyr

amid

Are

a:D

istri

butio

n an

d Tr

ansp

orta

tion

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

16O

ur tr

ansp

orta

tion

syst

em p

rovi

des

in-tr

ansi

t mat

eria

l ass

et

visi

bilit

y

Pyr

amid

Are

a:D

istri

butio

n an

d Tr

ansp

orta

tion

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

A-6

Logi

stic

s M

atur

ity E

valu

ator

17Th

e fo

llow

ing

best

des

crib

es o

ur d

istri

butio

n po

licy

rega

rdin

g pl

acem

ent o

f sup

plie

s an

d eq

uipm

ent:

Pyr

amid

Are

a:D

istri

butio

n an

d Tr

ansp

orta

tion

AA

- O

ur m

ater

ial d

istri

butio

n po

licy

spec

ifica

lly

requ

ires

keep

ing

mat

eria

l inv

ento

ries

as c

lose

to

poi

nt-o

f-use

as

poss

ible

.

BB

- In

pra

ctic

e, w

e po

sitio

n m

ater

ial i

nven

tory

cl

ose

to p

oint

-of-u

se w

hene

ver p

ossi

ble.

CC

- W

e do

not

hav

e po

licy

on th

is m

atte

r.

DD

- W

e po

sitio

n m

ater

ial i

nven

tory

whe

reve

r ou

r war

ehou

ses

are

loca

ted.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

18Th

e fo

llow

ing

best

des

crib

es w

here

we

rece

ive

supp

lies

and

equi

pmen

t:

Pyr

amid

Are

a:D

istri

butio

n an

d Tr

ansp

orta

tion

AA

- M

ater

ial r

ecei

pts

are

rout

inel

y re

ceiv

ed a

t po

int o

f ope

ratio

nal u

se.

BB

- H

igh

prio

rity

ship

men

ts a

re s

omet

imes

sh

ippe

d di

rect

ly to

poi

nt o

f use

.

CC

- A

ll m

ater

ial s

hipm

ents

are

rece

ived

at

cent

ral w

areh

ouse

loca

tions

.

DD

- O

ur p

rocu

rem

ent o

ffice

r(s)

dec

ides

whe

re

to s

hip

mat

eria

l com

ing

from

com

mer

cial

so

urce

s.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

Logi

stic

s M

atur

ity E

valu

ator

19Th

e fo

llow

ing

best

des

crib

es th

e w

ay w

e re

sour

ce d

istri

butio

n an

d tra

nspo

rtatio

n:

Pyr

amid

Are

a:D

istri

butio

n an

d Tr

ansp

orta

tion

AA

- D

istri

butio

n an

d tra

nspo

rtatio

n re

quire

men

ts h

ave

an id

entif

iabl

e an

d di

rect

lin

k to

our

fina

ncia

l bud

getin

g sy

stem

, ena

blin

g us

to id

entif

y if

our b

udge

ts a

re p

rope

rly s

ized

to

mee

t our

requ

irem

ents

.

BB

- D

istri

butio

n an

d tra

nspo

rtatio

n re

quire

men

ts a

re ro

lled

up in

to a

gen

eric

ac

coun

t, w

hich

com

plic

ates

our

abi

lity

to

iden

tify

if ou

r bud

gets

are

pro

perly

siz

ed to

m

eet o

ur re

quire

men

ts.

CC

- D

istri

butio

n an

d tra

nspo

rtatio

n re

quire

men

ts a

re ro

lled

up in

to m

ore

than

one

ge

neric

acc

ount

, whi

ch c

ompl

icat

es o

ur a

bilit

y to

iden

tify

if ou

r bud

gets

are

pro

perly

siz

ed to

m

eet o

ur re

quire

men

ts.

DD

- D

istri

butio

n an

d tra

nspo

rtatio

n ar

e ex

pens

es fo

r whi

ch o

ur c

usto

mer

s re

imbu

rse

us; t

here

fore

thes

e ex

pens

es d

o no

t hav

e a

net i

mpa

ct o

n ou

r bud

gets

.

EE

- D

on't

know

.

20O

ur e

nter

pris

e le

vel m

etric

s in

clud

e tra

nspo

rtatio

n an

d di

strib

utio

n m

easu

res

Pyr

amid

Are

a:D

istri

butio

n an

d Tr

ansp

orta

tion

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

on't

know

.

A-7

Logi

stic

s M

atur

ity E

valu

ator

21O

ur A

genc

y's

appr

oach

to re

ultil

izat

ion

of u

nnee

ded

equi

pmen

t an

d m

ater

ial a

sset

s is

:

Pyr

amid

Are

a:M

ater

ial D

ispo

sitio

n

AA

- O

ur A

genc

y ha

s of

ficia

l rul

es a

nd

proc

esse

s in

pla

ce to

ens

ure

that

mat

erie

l no

long

er re

quire

d by

the

owni

ng/u

sing

or

gani

zatio

n is

offe

red

for r

euse

to a

ll ot

her

orga

niza

tions

with

in th

e A

genc

y.

BB

- O

ur A

genc

y ha

s of

ficia

l rul

es a

nd

proc

esse

s in

pla

ce to

ens

ure

that

mat

erie

l no

long

er re

quire

d by

the

owni

ng/u

sing

or

gani

zatio

n is

offe

red

to s

ome

orga

niza

tions

w

ithin

the

Age

ncy.

CC

- O

ur A

genc

y do

es n

ot h

ave

offic

ial r

ules

an

d pr

oces

ses

but a

s a

gene

ral p

ract

ice

the

owni

ng/u

sing

org

aniz

atio

n of

fers

mat

erie

l no

long

er re

quire

d to

all

othe

r org

aniz

atio

ns w

ithin

th

e A

genc

y.

DD

- O

ur A

genc

y do

es n

ot h

ave

offic

ial r

ules

an

d pr

oces

ses

but a

s a

gene

ral p

ract

ice

the

owni

ng/u

sing

org

aniz

atio

n of

fers

mat

erie

l no

long

er re

quire

d to

som

e or

gani

zatio

ns w

ithin

th

e A

genc

y.

EE

- O

ur A

genc

y ha

s no

t iss

ued

mat

erie

l di

spos

ition

gui

danc

e, e

ither

offi

cial

ly o

r un

offic

ially

.

Logi

stic

s M

atur

ity E

valu

ator

22Fo

r pur

pose

s of

equ

ipm

ent a

nd m

ater

ial d

ispo

sitio

n, o

ur

orga

niza

tion:

Pyr

amid

Are

a:M

ater

ial D

ispo

sitio

n

AA

- ha

s a

full-

time

staf

f tra

ined

and

kn

owle

dgea

ble

abou

t how

to d

ispo

se o

f m

ater

iel i

n ac

cord

ance

with

the

Fede

ral

Pro

perty

Man

agem

ent r

ules

.

BB

- ha

s a

staf

f tra

ined

and

kno

wle

dgea

ble

abou

t how

to d

ispo

se o

f mat

erie

l in

acco

rdan

ce w

ith th

e Fe

dera

l Pro

perty

M

anag

emen

t rul

es b

ut th

ese

pers

onne

l onl

y w

ork

on d

ispo

sitio

n on

an

as-r

equi

red

basi

s.

CC

- re

lies

on c

ontra

ctor

s to

per

form

the

full

rang

e of

dis

posi

tion

actio

ns (r

eutil

izat

ion,

do

natio

n, a

nd s

urpl

us s

ales

).

DD

- re

lies

on c

ontra

ctor

s to

per

form

som

e di

spos

ition

act

ions

.

EE

- do

es n

ot h

ave

any

mat

erie

l dis

posi

tion

resp

onsi

bilit

ies.

23O

ur b

udge

t and

pro

gram

pla

n in

clud

es a

dequ

ate

pers

onne

l and

fu

ndin

g to

effe

ctiv

ely

and

effic

ient

ly d

ispo

se o

f equ

ipm

ent a

nd

mat

erie

l:

Pyr

amid

Are

a:M

ater

ial D

ispo

sitio

n

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n.

A-8

Logi

stic

s M

atur

ity E

valu

ator

24O

ur o

rgan

izat

ion'

s te

chno

logy

pos

ture

in m

ater

iel d

ispo

sitio

n ca

n be

bes

t des

crib

ed a

s:

Pyr

amid

Are

a:M

ater

ial D

ispo

sitio

n

AA

- O

ur A

genc

y ow

ns a

nd o

pera

tes

our c

urre

nt

stat

e-of

-the-

art t

echn

olog

y sy

stem

, whi

ch

enab

les

us to

effe

ctiv

ely

notif

y ot

hers

with

in

and

outs

ide

the

Age

ncy

or to

be

ours

elve

s no

tifie

d by

oth

ers,

with

in o

r out

side

, of t

he

avai

labi

lity

of e

xces

s an

d su

rplu

s m

ater

iel.

BB

- O

ur A

genc

y ow

ns a

nd o

pera

tes

our c

urre

nt

stat

e-of

-the-

art t

echn

olog

y sy

stem

, whi

ch

enab

les

us to

effe

ctiv

ely

notif

y ot

hers

with

in

the

Age

ncy

or to

be

ours

elve

s no

tifie

d by

ot

hers

with

in th

e A

genc

y of

the

avai

labi

lity

of

exce

ss a

nd s

urpl

us m

ater

iel.

CC

- A

sup

port

cont

ract

or o

wns

and

ope

rate

s ou

r cur

rent

sta

te-o

f-the

-art

tech

nolo

gy s

yste

m,

whi

ch e

nabl

es u

s to

not

ify o

ther

s w

ithin

and

ou

tsid

e th

e A

genc

y or

to b

e ou

rsel

ves

notif

ied

by o

ther

s, w

ithin

or o

utsi

de, o

f the

ava

ilabi

lity

of e

xces

s an

d su

rplu

s m

ater

iel.

DD

- A

sup

port

cont

ract

or o

wns

and

ope

rate

s ou

r cur

rent

sta

te-o

f-the

-art

tech

nolo

gy s

yste

m,

whi

ch e

nabl

es u

s to

not

ify o

ther

s w

ithin

the

Age

ncy

or to

be

ours

elve

s no

tifie

d by

oth

ers

with

in th

e A

genc

y of

the

avai

labi

lity

of e

xces

s an

d su

rplu

s m

ater

iel.

EE

- Th

e au

tom

ated

sys

tem

sup

porti

ng o

ur

mat

erie

l dis

posi

tion

effo

rts is

not

cur

rent

sta

te-

of-th

e-ar

t.

Logi

stic

s M

atur

ity E

valu

ator

25Th

e fo

llow

ing

best

des

crib

es o

ur o

rgan

izat

ion'

s w

ritte

n pr

oced

ures

cov

erin

g th

e di

spos

al o

f unn

eede

d m

ater

iel a

s re

quire

d by

the

Fede

ral P

rope

rty M

anag

emen

t rul

es p

ublis

hed

by

the

Gen

eral

Ser

vice

s A

dmin

istra

tion:

Pyr

amid

Are

a:M

ater

ial D

ispo

sitio

n

AA

- O

ur o

ffici

al m

ater

ial d

ispo

sal p

roce

dure

s ar

e co

nsis

tent

with

Fed

eral

Pro

perty

M

anag

emen

t rul

es a

nd m

eet o

ur

orga

niza

tion'

s ne

eds.

BB

- W

e ge

nera

lly m

eet F

eder

al P

rope

rty

Man

agem

ent p

roce

dure

s.

CC

- W

e ha

ve o

ur o

wn

mat

eria

l dis

posa

l pr

oced

ures

tailo

red

to o

ur u

niqu

e re

quire

men

ts.

DD

- E

ach

orga

niza

tion

has

its o

wn

mat

eria

l di

spos

al p

roce

dure

s.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

26Th

e fo

llow

ing

best

des

crib

es m

ater

iel d

ispo

sitio

n in

our

or

gani

zatio

n:

Pyr

amid

Are

a:M

ater

ial D

ispo

sitio

n

AA

- W

e ha

ve m

ater

iel d

ispo

sitio

n pe

rform

ance

st

anda

rds

that

are

cur

rent

and

gen

eral

ly w

ell

unde

rsto

od a

nd ri

goro

usly

mon

itore

d.

BB

- W

e ha

ve m

ater

ial d

ispo

sitio

n pe

rform

ance

st

anda

rds

that

are

cur

rent

and

gen

eral

ly w

ell

unde

rsto

od b

ut a

re n

ot ri

goro

usly

mon

itore

d.

CC

- W

e ha

ve m

ater

iel d

ispo

sitio

n pe

rform

ance

st

anda

rds

that

are

not

cur

rent

or w

ell

unde

rsto

od.

DD

- W

e re

ly o

n co

ntra

ctor

s to

mee

t agr

eed-

to

perfo

rman

ce s

tand

ards

.

EE

- W

e do

not

hav

e m

eani

ngfu

l per

form

ance

st

anda

rds.

A-9

Logi

stic

s M

atur

ity E

valu

ator

27O

ur A

genc

y's

visi

on fo

r mat

eria

l acq

uisi

tion

is b

est d

escr

ibed

as:

Pyr

amid

Are

a:M

ater

ial A

cqui

sitio

n

AA

- O

ur A

genc

y's

visi

on is

that

mat

erie

l ac

quis

ition

stra

tegi

es a

nd p

roce

sses

sha

ll co

ntin

ually

see

k ou

t and

app

ly fr

esh

and

crea

tive

appr

oach

es in

sup

port

of o

ur

cust

omer

s.

BB

- O

ur A

genc

y ha

s no

t arti

cula

ted

a cl

ear

visi

on/s

trate

gy s

tate

men

t but

it d

emon

stra

tes

thou

gh it

s ac

tions

that

agi

lity

and

reso

urce

fuln

ess

in m

ater

iel a

cqui

sitio

n is

en

cour

aged

.

CC

- O

ur A

genc

y w

orks

with

the

Offi

ce o

f Fe

dera

l Pro

cure

men

t Pol

icy

and

GS

A's

Fe

dera

l Pro

cure

men

t Reg

ulat

ions

sta

ff to

id

entif

y an

d m

inim

ize

or re

mov

e re

d ta

pe th

at

ham

pers

effe

ctiv

e m

ater

iel a

cqui

sitio

n.

DD

- O

ur A

genc

y w

orks

col

labo

rativ

ely

with

su

pplie

rs to

find

inno

vativ

e w

ays

to a

cqui

re

mat

erie

l with

in th

e co

ntex

t of e

xist

ing

fede

ral

proc

urem

ent r

egul

atio

ns.

EE

- O

ur A

genc

y ad

here

s st

rictly

to tr

aditi

onal

m

ater

iel a

cqui

sitio

n pr

oces

ses

with

in th

e co

ntex

t of e

xist

ing

fede

ral p

rocu

rem

ent

regu

latio

ns.

Logi

stic

s M

atur

ity E

valu

ator

28W

hich

bes

t des

crib

es o

ur o

rgan

izat

ion'

s m

ater

ial a

cqui

sitio

n pr

ogra

m:

Pyr

amid

Are

a:M

ater

ial A

cqui

sitio

n

AA

- O

ur m

ater

iel a

cqui

sitio

n w

orkf

orce

co

mm

unic

ates

and

wor

ks e

ffect

ivel

y w

ith o

ur

Age

ncy'

s lo

gist

ics

staf

f and

with

our

cus

tom

ers

and

supp

liers

.

BB

- O

ur m

ater

iel a

cqui

sitio

n or

gani

zatio

n is

not

en

cum

bere

d w

ith m

anag

emen

t lay

erin

g th

at

impe

des

effe

ctiv

e su

ppor

t.

CC

- O

ur m

ater

iel a

cqui

sitio

n w

orkf

orce

ro

utin

ely

wor

ks w

ith th

e A

genc

y's

logi

stic

s st

aff

to a

ddre

ss c

urre

nt c

ritic

al is

sues

.

DD

- O

ur m

ater

iel a

cqui

sitio

n w

orkf

orce

is u

p-to

-da

te in

its

train

ing

and

know

ledg

e of

cur

rent

pr

ocur

emen

t pra

ctic

es a

nd e

mer

ging

tren

ds.

EE

- O

ur m

ater

iel a

cqui

sitio

n w

orkf

orce

is

basi

cally

a s

tand

-alo

ne o

pera

tion

that

pro

vide

s as

sist

ance

whe

n as

ked

to b

ut is

not

wel

l in

tegr

ated

with

the

Age

ncy'

s lo

gist

ics

staf

f and

pr

ogra

m.

A-10

Logi

stic

s M

atur

ity E

valu

ator

29Th

e fo

llow

ing

best

des

crib

es o

ur m

ater

ial a

cqui

sitio

n or

gani

zatio

n's

budg

et a

nd p

rogr

am p

lan

rega

rdin

g pe

rson

nel a

nd

fund

ing

to e

ffect

ivel

y su

ppor

t the

Age

ncy'

s st

aff,

cust

omer

s, a

nd

supp

liers

mat

eria

l acq

uisi

tion

need

s:

Pyr

amid

Are

a:M

ater

ial A

cqui

sitio

n

AA

- O

ur a

cqui

sitio

n or

gani

zatio

n is

fully

sta

ffed

with

fund

ing

auth

ority

suf

ficie

nt to

man

age

staf

f, cu

stom

er, a

nd s

uppl

ier r

equi

rem

ents

.

BB

- O

ur a

cqui

sitio

n or

gani

zatio

n su

ppor

ts

staf

f, cu

stom

ers,

and

sup

plie

rs, b

ut la

cks

eith

er s

uffic

ient

fund

ing

or s

taff

to e

ffect

ivel

y pe

rform

all

func

tions

.

CC

- O

ur a

cqui

sitio

n or

gani

zatio

n ca

n pe

rform

so

me

of th

ese

func

tions

but

doe

s no

t hav

e th

e au

thor

ity, p

erso

nnel

, or f

undi

ng to

sup

port

all.

DD

- W

e do

not

mai

ntai

n a

mat

eria

l acq

uisi

tion

orga

niza

tion.

EE

- D

o no

t kno

w

30In

our

org

aniz

atio

n ou

r ele

ctro

nic

busi

ness

rela

tions

hips

with

co

mm

erci

al s

uppl

iers

are

cha

ract

eriz

ed b

y:

Pyr

amid

Are

a:M

ater

ial A

cqui

sitio

n

AA

- E

stab

lishm

ent o

f e-b

usin

ess

inte

rcha

nges

be

twee

n ou

r acq

uisi

tion

proc

esse

s an

d pr

ivat

e se

ctor

sup

plie

rs u

sing

com

mer

cial

ly

reco

gniz

ed in

form

atio

n in

terc

hang

e st

anda

rds.

BB

- E

stab

lishe

d ac

quis

ition

par

tner

ship

s w

ith

sele

cted

sup

plie

rs in

clud

ing

two-

way

dat

a sh

arin

g.

CC

- A

rms-

leng

th c

ontra

ctin

g w

ith s

uppl

iers

ac

com

plis

hed

in a

ccor

danc

e w

ith F

eder

al

Acq

uisi

tion

Reg

ulat

ions

.

DD

- M

ater

ial p

rocu

rem

ent u

sing

GS

A fe

dera

l su

pply

sch

edul

es a

nd g

over

nmen

t cre

dit c

ard

purc

hase

s.

EE

- M

ater

ial p

rocu

rem

ent c

ontra

cts

arra

nged

by

pos

tal m

ail,

e-m

ail a

nd b

y te

leph

one.

Logi

stic

s M

atur

ity E

valu

ator

31O

ur o

rgan

izat

ion'

s po

licy

on a

dmin

istra

tive

and

prod

uctio

n le

ad

times

is:

Pyr

amid

Are

a:M

ater

ial A

cqui

sitio

n

AA

- W

e ac

tivel

y at

tem

pt to

redu

ce th

ese

times

in

ord

er to

impr

ove

cust

omer

sup

port

and

redu

ce c

osts

.

BB

- W

e ge

nera

lly a

ccep

t the

lead

tim

es

prov

ided

by

the

cont

ract

ors

sellin

g m

ater

ial

and

serv

ices

to o

ur o

rgan

izat

ion.

CC

- P

roje

cted

lead

tim

es in

our

org

aniz

atio

n ar

e ba

sed

on p

ast h

isto

ry d

ata.

DD

- O

ur m

ater

ial a

cqui

sitio

n sy

stem

doe

s no

t re

quire

us

to u

se p

rior l

ead

time

info

rmat

ion.

EE

- W

e ha

ve n

o po

licy

on le

ad ti

mes

.

32W

hich

sta

tem

ent b

est d

escr

ibes

mat

erie

l acq

uisi

tion

perfo

rman

ce in

you

r org

aniz

atio

n.

Pyr

amid

Are

a:M

ater

ial A

cqui

sitio

n

AA

- W

e ha

ve m

ater

iel a

cqui

sitio

n pe

rform

ance

st

anda

rds

that

are

cur

rent

and

gen

eral

ly w

ell

unde

rsto

od a

nd ri

goro

usly

mon

itore

d.

BB

- W

e ha

ve m

ater

iel a

cqui

sitio

n pe

rform

ance

st

anda

rds

that

are

cur

rent

and

gen

eral

ly w

ell

unde

rsto

od b

ut a

re n

ot ri

goro

usly

mon

itore

d.

CC

- W

e ha

ve m

ater

iel a

cqui

sitio

n pe

rform

ance

st

anda

rds

that

are

not

cur

rent

or w

ell

unde

rsto

od.

DD

- W

e re

ly o

n co

ntra

ctor

s to

man

age

mat

erie

l ac

quis

ition

per

form

ance

sta

ndar

ds.

EE

- W

e do

not

hav

e m

ater

iel a

cqui

sitio

n pe

rform

ance

sta

ndar

ds.

A-11

Logi

stic

s M

atur

ity E

valu

ator

33Th

e fo

llow

ing

best

des

crib

es o

ur p

roce

ss to

agg

rega

te

requ

irem

ents

for c

omm

on s

uppl

ies

and

equi

pmen

t tha

t will

be

used

thro

ugho

ut th

e or

gani

zatio

n:

Pyr

amid

Are

a:R

equi

rem

ents

Det

erm

inat

ion

AA

- A

ll ac

tiviti

es a

cros

s ou

r Age

ncy

regu

larly

co

ordi

nate

mat

eria

l and

equ

ipm

ent

requ

irem

ents

to e

nsur

e ec

onom

y of

sca

le

acqu

isiti

ons.

BB

- O

ur s

uppl

y pe

rson

nel c

ompa

re in

form

atio

n on

acq

uisi

tion

of c

omm

on it

ems

whe

neve

r po

ssib

le.

CC

- Th

ere

is n

ot s

uffic

ient

info

rmat

ion

avai

labl

e to

coo

rdin

ate

purc

hase

s of

com

mon

item

s or

eq

uipm

ent.

DD

- E

ach

orga

niza

tion

is re

spon

sibl

e fo

r ac

quiri

ng it

s ow

n su

pplie

s an

d eq

uipm

ent.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

34Th

e fo

llow

ing

best

des

crib

es th

e lin

kage

bet

wee

n th

e te

mpo

of

oper

atio

ns a

nd th

e fu

ndin

g fo

r log

istic

s:

Pyr

amid

Are

a:R

equi

rem

ents

Det

erm

inat

ion

AA

- W

e re

late

logi

stic

s fu

ndin

g to

ope

ratio

nal

activ

ity a

s pa

rt of

our

pla

nnin

g, p

rogr

amm

ing

and

budg

etin

g.

BB

- O

ur lo

gist

ics

peop

le tr

y to

coo

rdin

ate

logi

stic

s fu

ndin

g w

ith o

pera

tiona

l man

ager

s w

hene

ver p

ossi

ble.

CC

- O

pera

tions

and

logi

stic

s fu

ndin

g ar

e di

ffere

nt c

ateg

orie

s.

DD

- O

pera

tions

and

logi

stic

s re

quire

men

ts a

re

not r

eally

dire

ctly

rela

ted.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

Logi

stic

s M

atur

ity E

valu

ator

35Th

e fo

llow

ing

best

des

crib

es h

ow fo

reca

sted

mat

eria

l re

quire

men

ts a

re re

late

d to

the

requ

irem

ents

act

ually

incu

rred

:

Pyr

amid

Are

a:R

equi

rem

ents

Det

erm

inat

ion

AA

- O

ur a

utom

ated

requ

irem

ents

pro

cess

co

mpu

ter f

utur

e m

ater

ial n

eeds

bas

ed o

n pa

st

actu

al d

eman

ds fo

r mat

eria

l.

BB

- O

ur m

ater

ial r

equi

rem

ents

man

ager

s fa

ctor

in p

ast n

eeds

whe

n de

velo

ping

futu

re

mat

eria

l req

uire

men

ts.

CC

- W

e do

not

regu

larly

trac

k pa

st m

ater

ial

usag

e.

DD

- O

ur fu

ture

mat

eria

l dem

ands

fluc

tuat

e to

th

e po

int t

hat p

ast u

sage

is m

eani

ngle

ss.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

36O

ur lo

gist

ics

mat

eria

l req

uire

men

ts a

re p

roje

cted

and

man

aged

:

Pyr

amid

Are

a:R

equi

rem

ents

Det

erm

inat

ion

AA

- Fo

r 5 o

r mor

e ye

ars

BB

- 3

to 4

yea

rs

CC

- B

i-ann

ually

DD

- An

nual

ly

EE

- M

onth

ly o

r les

s

A-12

Logi

stic

s M

atur

ity E

valu

ator

37Th

e fo

llow

ing

best

des

crib

es h

ow o

ur o

rgan

izat

ion

track

s th

e di

ffere

nce

betw

een

proj

ecte

d lo

gist

ics

reso

urce

requ

irem

ents

th

at g

o in

to th

e bu

dget

and

the

fund

ing

actu

ally

rece

ived

:

Pyr

amid

Are

a:R

equi

rem

ents

Det

erm

inat

ion

AA

- W

e tra

ck a

ctua

l fun

ding

aga

inst

pro

ject

ed

need

and

adj

ust f

utur

e re

quire

men

ts

acco

rdin

gly.

BB

- O

nce

actu

al fu

ndin

g is

rece

ived

, the

pr

ojec

ted

fund

ing

need

s ar

e no

long

er re

leva

nt.

CC

- Fu

ndin

g re

ceiv

ed b

ecom

es o

ur

requ

irem

ent.

DD

- W

e do

not

com

pare

pro

ject

ed fu

ndin

g ag

ains

t act

ual f

undi

ng.

EE

- W

e do

not

trac

k pr

ior y

ears

pro

ject

ed

fund

ing.

38W

hen

dete

rmin

ing

our a

nnua

l log

istic

s re

quire

men

ts, w

e de

velo

p pr

ojec

tions

bas

ed o

n

Pyr

amid

Are

a:R

equi

rem

ents

Det

erm

inat

ion

AA

- O

pera

tiona

l pro

files

, maj

or a

cqui

sitio

ns,

oper

atio

ns a

nd m

aint

enan

ce, a

nd

cont

inge

ncie

s

BB

- M

ajor

acq

uisi

tions

, ope

ratio

ns a

nd

mai

nten

ance

, and

con

tinge

ncie

s

CC

- M

ajor

acq

uisi

tions

, ope

ratio

ns a

nd

mai

nten

ance

DD

- O

ne lu

mp

sum

for l

ogis

tics

EE

- W

e ha

ve n

o lo

gist

ics

requ

irem

ents

.

Logi

stic

s M

atur

ity E

valu

ator

39Lo

gist

ics

reso

urce

s pr

ojec

tions

are

bas

ed o

n:

Pyr

amid

Are

a:R

equi

rem

ents

Det

erm

inat

ion

AA

- Ze

ro-b

ased

requ

irem

ents

and

fore

cast

th

roug

h cr

iteria

suc

h as

ope

ratio

nal h

ours

BB

- La

st y

ear's

exp

endi

ture

s pl

us a

fore

cast

of

plan

ned

chan

ges

CC

- La

st y

ear's

exp

endi

ture

s pl

us u

nsat

isfie

d re

quire

men

ts

DD

- La

st y

ear's

bud

get p

lus

infla

tion

EE

- W

e do

not

pro

ject

mat

eria

l req

uire

men

ts.

40Th

e fo

llow

ing

best

des

crib

es h

ow o

ur A

genc

y re

late

s th

e st

ate

of

equi

pmen

t/mat

eria

l mai

nten

ance

cap

abili

ties

and

the

impa

ct o

f m

aint

enan

ce s

uppo

rt in

pla

nnin

g Ag

ency

ope

ratio

ns:

Pyr

amid

Are

a:M

aint

enan

ce

AA

- M

aint

enan

ce c

apab

ilitie

s an

d su

ppor

t is

alw

ays

a fa

ctor

in p

lann

ing

maj

or o

pera

tions

.

BB

- M

aint

enan

ce c

apab

ilitie

s an

d su

ppor

t is

som

etim

es a

fact

or in

pla

nnin

g m

ajor

op

erat

ions

.

CC

- M

aint

enan

ce c

apab

ilitie

s an

d su

ppor

t are

de

alt w

ith a

fter a

n op

erat

ion

is c

ompl

eted

.

DD

- O

ur o

pera

tions

are

crit

ical

so

we

go w

ith

wha

t we

have

.

EE

- W

e ha

ve n

o m

aint

enan

ce c

apab

ility.

A-13

Logi

stic

s M

atur

ity E

valu

ator

41In

our

org

aniz

atio

n, m

aint

enan

ce a

ctiv

ities

are

org

aniz

ed u

nder

:

Pyr

amid

Are

a:M

aint

enan

ce

AA

- A

sin

gle

logi

stic

s or

gani

zatio

n

BB

- Th

e sa

me

orga

niza

tion

that

man

ages

op

erat

ions

.

CC

- A

sep

arat

e P

rogr

am O

ffice

for e

ach

type

of

equi

pmen

t

DD

- N

o on

e --

mai

nten

ance

act

iviti

es a

re

inde

pend

ent

EE

- W

e do

n't h

ave

any

mai

nten

ance

or

gani

zatio

ns

42Th

e fo

llow

ing

best

des

crib

es th

e ac

cura

cy a

nd a

vaila

bilit

y of

m

aint

enan

ce c

ost i

nfor

mat

ion:

Pyr

amid

Are

a:M

aint

enan

ce

AA

- Th

e co

st o

f equ

ipm

ent a

nd m

ater

ial

mai

nten

ance

is k

ept u

pdat

ed a

nd a

ccur

ate

in

auto

mat

ed d

ata

base

s ac

cess

ible

to e

very

one

with

a n

eed

to k

now

.

BB

- M

aint

enan

ce c

osts

are

ava

ilabl

e in

our

m

aint

enan

ce d

ata

syst

ems.

CC

- W

e ke

ep h

ard-

copy

reco

rds

of

mai

nten

ance

cos

ts.

DD

- W

e do

not

hav

e re

cord

s of

mai

nten

ance

co

sts.

EE

- W

e do

not

hav

e m

aint

enan

ce c

osts

in o

ur

orga

niza

tion.

Logi

stic

s M

atur

ity E

valu

ator

43Th

e st

rate

gy th

at b

est c

hara

cter

izes

our

mat

eria

l/equ

ipm

ent

mai

nten

ance

phi

loso

phy

is:

Pyr

amid

Are

a:M

aint

enan

ce

AA

- O

n-lin

e se

nsor

bas

ed m

aint

enan

ce

BB

- C

ondi

tione

d ba

sed

mai

nten

ance

CC

- S

ched

uled

pre

vent

ive

mai

nten

ance

DD

- M

aint

enan

ce a

s re

quire

d

EE

- R

un to

failu

re

44Th

e fo

llow

ing

best

des

crib

es th

e av

aila

bilit

y of

m

ater

ial/e

quip

men

t mai

nten

ance

act

ions

sta

tus:

Pyr

amid

Are

a:M

aint

enan

ce

AA

- O

ur a

utom

ated

sys

tem

s pr

ovid

e tim

ely

stat

us o

f mai

nten

ance

act

ions

to o

pera

tiona

l m

anag

ers.

BB

- W

e ha

ve p

roce

dure

s to

repo

rt m

aint

enan

ce s

tatu

s to

app

ropr

iate

man

ager

s by

pho

ne o

r e-m

ail.

CC

- O

pera

tiona

l man

ager

s ha

ve p

oint

s of

co

ntac

t to

inqu

ire a

bout

mai

nten

ance

sta

tus.

DD

- O

pera

tiona

l man

ager

s ar

e no

t res

pons

ible

fo

r equ

ipm

ent m

aint

enan

ce.

EE

- O

ur o

rgan

izat

ion

does

not

acc

ompl

ish

mat

eria

l/equ

ipm

ent m

aint

enan

ce.

A-14

Logi

stic

s M

atur

ity E

valu

ator

45Th

e fo

llow

ing

best

des

crib

es h

ow o

ur o

rgan

izat

ion

hand

les

defe

rred

or u

nfun

ded

mat

eria

l/equ

ipm

ent m

aint

enan

ce

requ

irem

ents

:

Pyr

amid

Are

a:M

aint

enan

ce

AA

- D

efer

red

mai

nten

ance

requ

irem

ents

are

tra

cked

and

revi

ewed

by

seni

or m

anag

ers.

BB

- D

efer

red

mai

nten

ance

requ

irem

ents

are

in

clud

ed in

futu

re m

aint

enan

ce b

udge

ts.

CC

- S

uch

requ

irem

ents

are

sim

ply

carr

ied

over

to

the

next

yea

r.

DD

- W

e do

not

trac

k de

ferr

ed m

aint

enan

ce

requ

irem

ents

.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

46O

ur m

ater

ial m

aint

enan

ce s

yste

m(s

)

Pyr

amid

Are

a:M

aint

enan

ce

AA

- Fo

reca

sts

prev

entiv

e m

aint

enan

ce, t

rack

s co

rrec

tive

mai

nten

ance

act

ions

, and

inte

rface

s di

rect

ly w

ith th

e te

chni

cal d

ata,

sup

ply,

fin

ance

, and

hum

an re

sour

ces

syst

ems.

BB

- Fo

reca

sts

prev

entiv

e m

aint

enan

ce, t

rack

s co

rrec

tive

mai

nten

ance

act

ions

, rel

ates

repa

ir pa

rts to

mai

nten

ance

act

ions

and

trac

ks th

e w

ork

acco

mpl

ishe

d by

indi

vidu

al t

echn

icia

ns

CC

- Tr

acks

pre

vent

ive

and

corr

ectiv

e m

aint

enan

ce a

ctio

ns, a

nd re

late

s re

pair

parts

to

mai

nten

ance

act

ions

DD

- R

ecor

ds p

reve

ntiv

e an

d co

rrec

tive

mai

nten

ance

act

ions

EE

- O

ur s

yste

m d

oes

not t

rack

mai

nten

ance

ac

tivity

.

Logi

stic

s M

atur

ity E

valu

ator

47Fu

ndin

g re

sour

ces

for l

ogis

tics

activ

ities

are

:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- B

udge

ted

and

plan

ned

for,

and

man

aged

se

para

tely

from

oth

er a

ctiv

ities

BB

- B

udge

ted

and

plan

ned

for,

but f

undi

ng is

su

bjec

t to

real

loca

tion

to n

on-lo

gist

ics

activ

ities

CC

- Im

bedd

ed (i

nclu

ded,

but

not

spe

cific

ally

id

entif

ied)

in p

rogr

am o

ffice

bud

gets

DD

- Im

bedd

ed in

uni

t-lev

el o

pera

ting

budg

ets

EE

- N

ot s

epar

atel

y id

entif

ied

48Fo

r our

org

aniz

atio

n, lo

gist

ics

reso

urce

s ar

e m

anag

ed u

nder

:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- U

nder

app

licab

le lo

gist

ics

offic

es in

the

orga

niza

tion

BB

- W

ithin

ope

ratio

ns o

ffice

s

CC

- B

y th

e ap

plic

able

equ

ipm

ent p

rogr

am

offic

es

DD

- N

o on

e --

logi

stic

s ac

tiviti

es a

re re

sour

ced

inde

pend

ently

EE

- W

e do

n't h

ave

any

logi

stic

s re

sour

ced

activ

ities

A-15

Logi

stic

s M

atur

ity E

valu

ator

49Th

e fo

llow

ing

best

des

crib

es th

e ro

le q

uant

itativ

e fo

reca

stin

g m

etho

ds p

lay

in d

evel

opin

g lo

gist

ics

budg

et re

quire

men

ts:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- O

ur a

utom

ated

fore

cast

ing

syst

ems

use

stan

dard

fore

cast

ing

mod

els

to p

roje

ct fu

ture

bu

dget

requ

irem

ents

.

BB

- O

ur m

ater

ial m

anag

ers

have

info

rmat

ion

tabl

es th

at a

re b

ased

on

fore

cast

ing

mod

els

to

quan

tify

proj

ecte

d m

ater

ial b

udge

t re

quire

men

ts.

CC

- O

ur m

ater

ial r

egul

atio

ns o

r pro

cedu

res

man

uals

des

crib

e ou

r app

roac

h fo

r mat

eria

l bu

dget

requ

irem

ents

fore

cast

s.

DD

- Fu

ture

mat

eria

l bud

get r

equi

rem

ents

are

de

velo

ped

usin

g pr

ior y

ear's

figu

res

plus

in

flatio

n.

EE

- D

o no

t kno

w.

50Th

e fo

llow

ing

best

des

crib

es th

e st

affin

g of

logi

stic

s ac

tiviti

es in

ou

r age

ncy:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- Lo

gist

ics

staf

fing

requ

irem

ents

are

one

of

the

high

est p

riorit

ies

in o

ur o

rgan

izat

ion.

BB

- Lo

gist

ics

staf

fing

requ

irem

ents

are

abo

ut

equa

l with

oth

er im

porta

nt a

reas

.

CC

- Lo

gist

ics

staf

f are

con

side

red

less

of a

pr

iorit

y th

an o

ther

sta

ff re

quire

men

ts, s

uch

as

oper

atio

ns.

DD

- Lo

gist

ics

staf

fing

is n

ot s

epar

atel

y id

entif

ied

in o

ur o

rgan

izat

ion.

EE

- W

e ha

ve n

o st

aff m

embe

rs th

at a

re

spec

ifica

lly lo

gist

ics

pers

onne

l.

Logi

stic

s M

atur

ity E

valu

ator

51O

ur L

ogis

tics

IT S

yste

m a

nd F

inan

ce IT

Sys

tem

(s)

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- A

re in

tegr

ated

in th

e sa

me

syst

em(s

) with

co

mm

on d

ata

base

s an

d in

tegr

ated

ap

plic

atio

ns.

BB

- A

re in

sep

arat

e, b

ut h

ighl

y in

tegr

ated

sy

stem

s.

CC

- A

re in

sep

arat

e, s

omew

hat c

onne

cted

sy

stem

s.

DD

- A

re in

sep

arat

e, u

nint

egra

ted

syst

ems.

EE

- Lo

gist

ics

and

finan

ce h

ave

no s

yste

ms

rela

tions

hip.

52Th

e fo

llow

ing

best

des

crib

es o

ur lo

gist

ics

budg

ets:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- D

etai

ls o

f our

logi

stic

s or

ient

ed b

udge

ts

are

read

ily id

entif

iabl

e an

d ac

cess

ible

in

auto

mat

ed s

yste

ms.

BB

- Lo

gist

ics

budg

et in

form

atio

n ca

n be

ob

tain

ed b

y m

anua

l rev

iew

of o

ur b

udge

t do

cum

ents

.

CC

- Lo

gist

ics

budg

et d

ata

cann

ot b

e se

para

ted

from

oth

er b

udge

t cat

egor

ies.

DD

- Th

ere

are

no lo

gist

ics

elem

ents

in o

ur

annu

al b

udge

ts.

EE

- D

o no

t kno

w.

A-16

Logi

stic

s M

atur

ity E

valu

ator

53In

our

org

aniz

atio

n, lo

gist

ics

activ

ities

are

:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- C

entra

lly m

anag

ed a

nd c

oord

inat

ed b

y a

dedi

cate

d H

eadq

uarte

rs e

lem

ent

BB

- R

egio

nally

man

aged

and

coo

rdin

ated

CC

- M

anag

ed a

nd c

oord

inat

ed b

y th

e ap

plic

able

pro

gram

offi

ce

DD

-The

resp

onsi

bilit

y of

the

oper

atin

g un

it

EE

- Lo

gist

ics

is n

ot m

anag

ed s

epar

atel

y fro

m

othe

r fun

ctio

ns.

54In

our

org

aniz

atio

n, lo

ng-te

rm s

usta

inm

ent o

f a n

ew s

yste

m o

r ne

w p

iece

of e

quip

men

t is

a m

ajor

con

side

ratio

n in

the

acqu

isiti

on p

roce

ss:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

Logi

stic

s M

atur

ity E

valu

ator

55Th

e fo

llow

ing

best

des

crib

es o

ur m

anag

emen

t stra

tegy

for

logi

stic

s re

sour

ce m

anag

emen

t:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- O

ur a

nnua

l stra

tegi

c pl

an h

as a

sec

tion

on

logi

stic

s st

rate

gy a

nd w

e m

anag

e to

thes

e go

als

and

obje

ctiv

es.

BB

- W

e ha

ve a

doc

umen

ted

logi

stic

s re

sour

ce

plan

sep

arat

e fro

m o

ur s

trate

gic

plan

ning

do

cum

ents

.

CC

- W

e pe

riodi

cally

set

logi

stic

s ob

ject

ives

and

try

to re

sour

ce th

eir i

mpl

emen

tatio

n.

DD

- W

e ap

ply

logi

stic

s re

sour

ces

as n

eeds

oc

cur.

EE

- Lo

gist

ics

reso

urce

pla

nnin

g is

not

a

spec

ific

part

of o

ur m

anag

emen

t stra

tegy

.

56Th

e fo

llow

ing

best

des

crib

es h

ow th

e lo

ng-te

rm to

tal c

ost o

f ow

ners

hip

is re

cord

ed a

nd c

onsi

dere

d in

life

-cyc

le d

ecis

ions

:

Pyr

amid

Are

a:R

esou

rce

Man

agem

ent

AA

- O

ur p

olic

y an

d pr

actic

es m

anda

te fu

ll co

nsid

erat

ion

of to

tal c

ost o

f ow

ners

hip

for

maj

or e

quip

men

ts a

nd re

late

d su

ppor

t.

BB

- W

e try

to c

onsi

der l

ife c

ycle

sup

port

cost

s w

hene

ver p

ossi

ble.

CC

- W

e ba

sica

lly m

anag

e co

sts

year

-to-y

ear.

DD

- Li

fe c

ycle

cos

ts a

re ju

st p

art o

f doi

ng

busi

ness

.

EE

- A

side

from

our

bud

get e

xpen

ditu

res,

we

don'

t tra

ck s

uppo

rt co

sts.

A-17

Logi

stic

s M

atur

ity E

valu

ator

57Ba

sed

on o

ur s

trate

gic

plan

, our

org

aniz

atio

n ha

s al

read

y or

in

tend

s to

impl

emen

t a m

ater

ial s

tock

age

requ

irem

ents

pro

cess

th

at re

late

s in

vent

ory

inve

stm

ent t

o cu

stom

er d

riven

per

form

ance

ob

ject

ives

.

Pyr

amid

Are

a:In

vent

ory

Opt

imiz

atio

n

AA

- W

e ha

ve a

lread

y im

plem

ente

d su

ch a

ca

pabi

lity.

BB

- W

e pl

an to

dev

elop

this

cap

abili

ty in

the

futu

re.

CC

- O

ur c

urre

nt re

quire

men

ts m

etho

dolo

gy

base

d on

cus

tom

er d

eman

ds is

ade

quat

e fo

r A

genc

y ne

eds

DD

. Our

inve

ntor

y re

quire

men

ts d

o no

t nee

d su

ch a

sop

hist

icat

ed a

ppro

ach.

EE

- D

on't

Know

.

58I w

ould

cha

ract

eriz

e ou

r pro

cess

for c

ompu

ting

mat

eria

l in

vent

ory

requ

irem

ents

as

follo

ws:

Pyr

amid

Are

a:In

vent

ory

Opt

imiz

atio

n

AA

- The

pro

cess

is h

ighl

y ac

cura

te in

pr

ojec

ting

our f

utur

e m

ater

ial n

eeds

.

BB

- Th

e pr

oces

s is

ade

quat

e, b

ut d

oes

not

cons

iste

ntly

fore

cast

futu

re m

ater

ial

requ

irem

ents

acc

urat

ely.

CC

- O

ur m

ater

ial r

equi

rem

ents

com

puta

tion

met

hods

are

sub

stan

tially

out

date

d.

DD

- O

ur m

ater

ial r

equi

rem

ents

are

so

vola

tile

it is

nea

rly im

poss

ible

to o

btai

n co

rrec

t for

ecas

ts

of fu

ture

nee

ds

EE

- W

e ac

quire

mat

eria

l inv

ento

ry a

s ne

eded

, so

requ

irem

ents

fore

cast

s ar

e ge

nera

lly

unne

cess

ary.

Logi

stic

s M

atur

ity E

valu

ator

59O

ur o

rgan

izat

ion'

s ap

proa

ch to

qua

ntify

ing

mat

eria

l inv

ento

ry

requ

irem

ents

is:

Pyr

amid

Are

a:In

vent

ory

Opt

imiz

atio

n

AA

- S

uch

requ

irem

ents

are

dev

elop

ed u

sing

a

mod

el th

at c

ompu

tes

the

full

rang

e of

mat

eria

l re

quire

men

ts a

cros

s ou

r Age

ncy

rega

rdle

ss o

f or

gani

zatio

nal l

evel

s.

BB

- E

ach

orga

niza

tion

with

in o

ur A

genc

y us

es

a st

anda

rd a

ppro

ach

or m

odel

that

com

pute

s m

ater

ial r

equi

rem

ents

bas

ed o

n th

at

orga

niza

tion'

s un

ique

nee

ds.

CC

- A

genc

y po

licy

perm

its e

ach

maj

or

orga

niza

tion

to d

evel

op it

s ow

n ap

proa

ch to

m

ater

ial r

equi

rem

ents

com

puta

tion.

DD

- E

ach

orga

niza

tion

deve

lops

futu

re y

ear

mat

eria

l req

uire

men

ts b

ased

on

prio

r yea

r's

need

s.

EE

- N

ot s

ure

who

dev

elop

s ou

r inv

ento

ry

requ

irem

ents

.

60Th

e fo

llow

ing

best

des

crib

es th

e m

etho

ds u

sed

by o

ur

orga

niza

tion

to c

ompu

te m

ater

ial r

equi

rem

ents

:

Pyr

amid

Are

a:In

vent

ory

Opt

imiz

atio

n

AA

- M

ost m

ater

ial r

equi

rem

ents

are

bas

ed o

n ac

hiev

ing

a co

mbi

natio

n of

end

item

or

orga

niza

tiona

l rea

dine

ss o

r per

form

ance

-ba

sed

inve

ntor

y ob

ject

ives

.

BB

- W

e us

e a

com

bina

tion

of in

vent

ory

stoc

kage

com

puta

tions

incl

udin

g pe

rform

ance

-ba

sed

obje

ctiv

es, p

ast d

eman

ds a

nd

spec

ial/u

npla

nned

requ

irem

ents

cal

cula

tions

.

CC

- M

ost o

f our

inve

ntor

y re

quire

men

ts

com

puta

tions

are

bas

ed o

n pa

st re

cord

ed

mat

eria

l dem

ands

DD

- W

e de

velo

p in

vent

ory

requ

irem

ents

usi

ng

fact

ors

base

d on

prio

r yea

rs' m

ater

ial n

eeds

.

EE

- W

e pr

ojec

t inv

ento

ry n

eeds

bas

ed o

n to

tal

avai

labl

e fu

ndin

g.

A-18

Logi

stic

s M

atur

ity E

valu

ator

61W

e ph

ysic

ally

pos

ition

mat

eria

l inv

ento

ries

base

d on

:

Pyr

amid

Are

a:In

vent

ory

Opt

imiz

atio

n

AA

- A

com

puta

tiona

l mod

el th

at s

elec

ts

loca

tions

that

sup

port

best

ser

vice

to th

e m

ost

cust

omer

s.

BB

- A

mix

of w

hole

sale

(cen

tral)

and

reta

il (u

sing

org

aniz

atio

n) lo

catio

ns.

CC

- Lo

catio

n of

our

cen

tral w

areh

ouse

faci

litie

s.

DD

- O

ther

org

aniz

atio

ns o

r con

tract

ors

hold

our

m

ater

ial i

nven

tory

.

EE

- W

here

ver w

e ha

ve s

uffic

ient

sto

rage

sp

ace.

62O

ur a

ppro

ach

to b

udge

ting

for a

cqui

sitio

n of

mat

eria

l inv

ento

ries

is:

Pyr

amid

Are

a:In

vent

ory

Opt

imiz

atio

n

AA

- W

e ha

ve o

r pla

n to

impl

emen

t a p

roce

ss to

de

velo

p m

ater

ial i

nven

tory

bud

get

requ

irem

ents

bas

ed o

n co

ntrib

utio

n to

or

gani

zatio

nal p

erfo

rman

ce ta

rget

s.

BB

- E

ach

orga

niza

tion'

s in

vent

ory

budg

et

requ

irem

ents

are

bas

ed o

n pa

st m

ater

ial s

ales

or

dem

ands

plu

s kn

own

chan

ge fa

ctor

s.

CC

- In

vent

ory

mat

eria

l bud

gets

are

bas

ed o

n la

st y

ear's

requ

irem

ent p

lus

infla

tion.

DD

- M

ater

ial i

nven

tory

bud

gets

are

a

perc

enta

ge o

f the

val

ue o

f our

end

item

eq

uipm

ent.

EE

- E

ach

orga

niza

tion

has

its o

wn

way

of

deve

lopi

ng m

ater

ial b

udge

ts.

Logi

stic

s M

atur

ity E

valu

ator

63I w

ould

cha

ract

eriz

e ou

r inv

ento

ry s

uppo

rt pe

rform

ance

as

follo

ws:

Pyr

amid

Are

a:In

vent

ory

Opt

imiz

atio

n

AA

- C

usto

mer

requ

irem

ents

for i

nven

tory

are

ne

arly

alw

ays

met

on

time,

in th

e pr

oper

qu

antit

ies

and

at th

e rig

ht c

ost.

BB

- C

usto

mer

inve

ntor

y re

quire

men

ts a

re

gene

rally

sat

isfie

d, b

ut w

e se

em to

hav

e su

bsta

ntia

l lev

els

of b

acko

rder

ed m

ater

ial

and/

or la

te d

eliv

erie

s.

CC

- C

usto

mer

con

fiden

ce in

our

logi

stic

s pr

oces

s co

uld

be s

igni

fican

tly im

prov

ed.

DD

- W

e do

n't m

easu

re c

usto

mer

sat

isfa

ctio

n w

ith in

vent

ory

supp

ort.

EE

- In

vent

ory

supp

ort i

s no

t our

org

aniz

atio

n's

resp

onsi

bilit

y.

64In

our

org

aniz

atio

n, in

vent

ory

(i.e.

repa

ir pa

rts, o

pera

tiona

l su

pplie

s) d

istri

butio

n is

:

Pyr

amid

Are

a:In

vent

ory

Opt

imiz

atio

n

AA

- C

entra

lly m

anag

ed a

nd c

oord

inat

ed

BB

- R

egio

nally

man

aged

and

coo

rdin

ated

CC

- M

anag

ed a

nd c

oord

inat

ed b

y th

e ap

plic

able

pro

gram

offi

ce

DD

- Le

ft to

the

oper

atin

g un

it

EE

- W

e do

n't h

ave

inve

ntor

y

A-19

Logi

stic

s M

atur

ity E

valu

ator

65Th

e fo

llow

ing

best

des

crib

es o

ur s

yste

ms

mod

erni

zatio

n pr

ogra

m:

Pyr

amid

Are

a:S

yste

ms

Mod

erni

zatio

n

AA

- W

e ha

ve a

form

al s

yste

ms

mod

erni

zatio

n pr

ogra

m th

at c

over

s m

ost k

ey A

genc

y fu

nctio

ns.

BB

- E

ach

oper

atin

g un

it is

resp

onsi

ble

for i

ts

own

syst

ems

mod

erni

zatio

n.

CC

- W

e ha

ve h

ired

a co

ntra

ctor

to h

elp

us w

ith

syst

ems

mod

erni

zatio

n.

DD

- Th

ere

are

no re

sour

ces

avai

labl

e fo

r m

oder

nizi

ng o

ur s

yste

ms.

EE

- O

ur s

yste

ms

don'

t nee

d fu

rther

m

oder

niza

tion.

66Th

e fo

llow

ing

desc

ribes

our

age

ncy

post

ure

on s

yste

ms

mod

erni

zatio

n:

Pyr

amid

Are

a:S

yste

ms

Mod

erni

zatio

n

AA

- W

e ha

ve a

sys

tem

s m

oder

niza

tion

initi

ativ

e th

at w

ill p

rovi

de n

eede

d fu

nctio

nal

impr

ovem

ents

ove

r sev

eral

yea

rs.

BB

- W

e ha

ve a

long

-term

sys

tem

s m

oder

niza

tion

prog

ram

that

is in

crem

enta

lly

fund

ed o

ver s

ever

al y

ears

.

CC

- S

yste

ms

mod

erni

zatio

n ta

kes

plac

e co

ntin

uous

ly a

s w

e id

entif

y ne

eded

im

prov

emen

ts.

DD

- S

yste

ms

mod

erni

zatio

n is

nee

ded

cont

inuo

usly

to u

pgra

de c

ompu

ters

and

co

mm

unic

atio

ns.

EE

- S

yste

ms

mod

erni

zatio

n ju

st ta

kes

a lo

ng

time.

Logi

stic

s M

atur

ity E

valu

ator

67I b

elie

ve o

ur o

rgan

izat

ion

has

impl

emen

ted

an a

ccep

tabl

e le

vel

of te

chno

logy

Pyr

amid

Are

a:S

yste

ms

Mod

erni

zatio

n

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

68Th

e fo

llow

ing

best

des

crib

es th

e aw

aren

ess

and

train

ing

aspe

ct

of o

ur s

yste

ms

mod

erni

zatio

n pr

ogra

m:

Pyr

amid

Are

a:S

yste

ms

Mod

erni

zatio

n

AA

- O

ur s

yste

ms

mod

erni

zatio

n ef

forts

alw

ays

incl

ude

impr

ovem

ent o

f sta

ff co

mpe

tenc

y th

roug

h co

ncur

rent

form

al tr

aini

ng.

BB

- W

e no

rmal

ly re

ceiv

e su

ffici

ent o

n-th

e-jo

b tra

inin

g as

sys

tem

s ar

e m

oder

nize

d.

CC

- O

ur tr

aini

ng p

rogr

ams

are

usua

lly s

epar

ate

from

sys

tem

s m

oder

niza

tion

effo

rts.

DD

- O

ur s

taff

lear

ns b

y do

ing.

EE

- W

e do

n't h

ave

a fo

rmal

trai

ning

pro

gram

re

late

d to

logi

stic

s m

oder

niza

tion.

A-20

Logi

stic

s M

atur

ity E

valu

ator

69O

ur A

genc

y's

logi

stic

s sy

stem

s m

oder

niza

tion

prog

ram

can

be

char

acte

rized

as:

Pyr

amid

Are

a:S

yste

ms

Mod

erni

zatio

n

AA

- H

ighl

y su

ppor

tive

of th

e A

genc

y m

issi

on

and

perfo

rman

ce o

bjec

tives

.

BB

- Fo

cusi

ng o

n fa

cilit

atin

g bu

sine

ss p

roce

ss

impr

ovem

ent.

CC

- G

ener

ally

kee

ping

up

with

sta

te-o

f-the

-art

tech

nolo

gy.

DD

- G

ener

ally

inef

fect

ive

in s

uppo

rting

fu

nctio

nal p

roce

ss im

prov

emen

t.

EE

- A

was

te o

f tim

e an

d m

oney

.

70Pe

rform

ance

and

Cos

t Mea

sure

men

ts in

our

Age

ncy:

Pyr

amid

Are

a:M

etric

s A

naly

sis

AA

- A

re ro

lled

up to

cap

ture

Age

ncy

leve

l pe

rform

ance

BB

- C

onsi

der a

genc

y-le

vel p

erfo

rman

ce, b

ut

not i

n an

inte

grat

ed fa

shio

n

CC

- In

tegr

ate

a nu

mbe

r of l

ow le

vel m

easu

res

to in

dica

te p

erfo

rman

ce a

t int

erm

edia

te

orga

niza

tiona

l lev

els

DD

- A

re g

ener

ally

lim

ited

to tr

acki

ng in

divi

dual

lo

w-le

vel a

ctiv

ities

EE

- Fo

rmal

mea

sure

men

ts a

re n

ot p

art o

f our

A

gnec

y's

man

agem

ent.

Logi

stic

s M

atur

ity E

valu

ator

71O

ur m

easu

res

are

wid

ely

know

n, u

nder

stoo

d an

d ac

cept

ed a

t all

leve

ls o

f the

org

aniz

atio

n.

Pyr

amid

Are

a:M

etric

s A

naly

sis

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

72Th

e fo

llow

ing

best

des

crib

es o

ur lo

gist

ics

syst

em p

erfo

rman

ce

mea

sure

s:

Pyr

amid

Are

a:M

etric

s A

naly

sis

AA

- O

ur p

erfo

rman

ce m

easu

res

are

alm

ost a

ll qu

antif

iabl

e, a

re tr

acke

d on

a re

gual

r bas

is,

and

used

by

appr

opria

te m

anag

ers.

BB

- M

ost p

erfo

rman

ce m

easu

res

are

quan

tifie

d w

ith p

erio

dic

man

agem

ent r

epor

ts.

CC

- W

e co

llect

dat

a re

gard

ing

our p

erfo

rman

ce

mea

sure

s if

it is

ava

ilabl

e.

DD

- O

ur p

erfo

rman

ce m

easu

res

tend

to b

e su

bjec

tive,

i.e.

, not

qua

ntifi

able

.

EE

- W

e ge

nera

lly d

on’t

mea

sure

per

form

ance

.

A-21

Logi

stic

s M

atur

ity E

valu

ator

73Th

e m

easu

res

we

use

gene

rally

con

side

r per

form

ance

or c

ost

effe

ctiv

enes

s ra

ther

than

just

thro

ughp

ut v

olum

e or

wor

kloa

d.

Pyr

amid

Are

a:M

etric

s A

naly

sis

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

o no

t kno

w

74Th

e fo

llow

ing

best

des

crib

es th

e re

latio

nshi

p be

twee

n lo

gist

ics

perfo

rman

ce m

easu

res

and

fund

ing

in o

ur o

rgan

izat

ion:

Pyr

amid

Are

a:M

etric

s A

naly

sis

AA

- P

erfo

rman

ce m

easu

res

are

a ke

y el

emen

t of

our

stra

tegi

c an

d re

sour

cing

pla

nnin

g sy

stem

.

BB

- W

e in

clud

e st

atus

of p

erfo

rman

ce

mea

sure

s in

our

pro

gram

and

bud

get

subm

issi

ons.

CC

- W

e se

em to

rece

ive

addi

tiona

l res

ourc

es if

ou

r per

form

ance

impr

oves

.

DD

- W

e se

em to

rece

ive

addi

tiona

l res

ourc

es if

ou

r per

form

ance

get

s w

orse

.

EE

- P

erfo

rman

ce a

nd fu

ndin

g ar

e no

t rea

lly

rela

ted

in o

ur o

rgan

izat

ion.

Logi

stic

s M

atur

ity E

valu

ator

75Th

e fo

llow

ing

best

des

crib

es th

e re

latio

nshi

p be

twee

n lo

gist

ics

perfo

rman

ce m

easu

res

and

our a

genc

y's

goal

s an

d ob

ject

ives

:

Pyr

amid

Are

a:M

etric

s A

naly

sis

AA

- O

ur o

rgan

izat

ion

goal

s an

d ob

ject

ive

each

ha

ve c

lose

ly re

late

d, q

uant

itativ

e pe

rform

ance

m

easu

res

as re

quire

d by

the

Gov

ernm

ent

Per

form

ance

and

Res

ults

Act

(GP

RA

).

BB

- W

e ha

ve g

oals

and

obj

ectiv

es w

ith re

late

d pe

rform

ance

mea

sure

s.

CC

- W

e tra

ck o

ur p

erfo

rman

ce a

gain

st

quan

tifia

ble

targ

et o

bjec

tives

.

DD

- O

rgan

izat

iona

l goa

ls a

nd o

ject

ives

hav

e no

t bee

n re

late

d to

spe

cific

mea

sure

s.

EE

- W

e do

n't h

ave

form

al, d

ocum

ente

d go

als

and

obje

ctiv

es.

76O

ur o

rgan

izat

ion

has

an o

ffici

al w

ritte

n pl

an th

at m

anda

tes

clas

sroo

m, d

ista

nce

lear

ning

, and

/or o

n-th

e-jo

b tra

inin

g on

Ag

ency

logi

stic

s po

licie

s an

d pr

oces

ses.

Pyr

amid

Are

a:Lo

gist

ics

Ski

lls D

evel

opm

ent

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

o no

t kno

w

A-22

Logi

stic

s M

atur

ity E

valu

ator

77Fo

r our

org

aniz

atio

n, lo

gist

ics

skill

s de

velo

pmen

t gen

eral

ly re

lies

on:

Pyr

amid

Are

a:Lo

gist

ics

Ski

lls D

evel

opm

ent

AA

- M

anag

emen

t-req

uire

d, c

ross

cut

ting

train

ing

(cla

ssro

om/d

ista

nce

lear

ning

/OJT

, ei

ther

sin

gly

or c

ombi

ned)

to q

ualif

y a

pers

on

in tw

o or

mor

e lo

gist

ics

area

s ac

ross

the

supp

ly c

hain

.

BB

- E

mpl

oyer

-req

uire

d cl

assr

oom

and

/or

dist

ance

lear

ning

trai

ning

focu

sed

prim

arily

on

a sp

ecifi

c lo

gist

ics

func

tion

(suc

h as

ac

quis

ition

, ass

et m

anag

emen

t, m

aint

enan

ce,

trans

porta

tion)

.

CC

- E

mpl

oyer

-req

uire

d on

-the-

job

train

ing

focu

sed

prim

arily

on

a sp

ecifi

c lo

gist

ics

func

tion.

DD

- E

mpl

oyee

-initi

ated

opt

iona

l tra

inin

g re

late

d to

impr

ovin

g on

e's

spec

ific

or g

ener

al lo

gist

ics

skills

.

EE

- W

e do

not

hav

e an

act

ive

logi

stic

s sk

ills

deve

lopm

ent p

rogr

am.

78O

ur b

udge

t and

pro

gram

pla

n in

clud

es a

dequ

ate

fund

ing

to

deve

lop

and

mai

ntai

n th

e lo

gist

ics

skill

s of

our

em

ploy

ees:

Pyr

amid

Are

a:Lo

gist

ics

Ski

lls D

evel

opm

ent

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n.

Logi

stic

s M

atur

ity E

valu

ator

79Th

e fo

llow

ing

best

des

crib

es th

e te

chno

logy

-rel

ated

logi

stic

ski

ll de

velo

pmen

t in

our o

rgan

izat

ion:

Pyr

amid

Are

a:Lo

gist

ics

Ski

lls D

evel

opm

ent

AA

- W

e ha

ve im

plem

ente

d to

day'

s el

ectro

nic

com

mer

ce a

nd s

uppl

y ch

ain

busi

ness

en

viro

nmen

t (us

ing

tool

s su

ch a

s G

SA's

Ad

vant

age

prog

ram

or c

omm

erci

al e

lect

roni

c or

derin

g ap

plic

atio

ns).

BB

- W

e un

ders

tand

and

are

usi

ng te

chno

logy

in

serti

on s

trate

gies

to re

engi

neer

our

bus

ines

s pr

oces

ses.

CC

- W

e ar

e tra

inin

g ou

r wor

kfor

ce to

con

side

r en

terp

rise

reso

urce

pla

nnin

g (E

RP

) con

cept

s an

d so

lutio

ns.

DD

- W

e ha

ve o

r are

pla

nnin

g to

hire

con

tract

or

expe

rts to

dev

elop

our

tech

nolo

gy s

kills

..

EE

- W

e pl

an li

ttle

or n

o te

chno

logy

-rel

ated

lo

gist

ics

skill

s de

velo

pmen

t.

80O

ur o

rgan

izat

ion

belie

ves

it is

crit

ical

to h

ave

a be

tter t

rain

ed,

mul

ti-sk

illed

, and

em

pow

ered

wor

kfor

ce to

take

full

adva

ntag

e of

im

porta

nt p

roce

sses

suc

h as

usi

ng b

est c

omm

erci

al a

nd

gove

rnm

ent p

ract

ices

, app

lyin

g bu

sine

ss c

ase

anal

ysis

(BC

A)

Pyr

amid

Are

a:Lo

gist

ics

Ski

lls D

evel

opm

ent

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

o no

t kno

w

A-23

Logi

stic

s M

atur

ity E

valu

ator

81Th

e fo

llow

ing

best

des

crib

es lo

gist

ics

skill

s de

velo

pmen

t in

our

orga

niza

tion:

Pyr

amid

Are

a:Lo

gist

ics

Ski

lls D

evel

opm

ent

AA

- W

e ar

e ac

tivel

y re

engi

neer

ing

or

trans

form

ing

how

we

deve

lop

or m

aint

ain

the

logi

stic

s sk

ills

of o

ur w

orkf

orce

so

that

we

can

effe

ctiv

ely

oper

ate

in th

e m

oder

n bu

sine

ss

envi

ronm

ent.

BB

- W

e ar

e m

ovin

g aw

ay fr

om a

func

tiona

l or

tech

nica

l spe

cial

ist l

ogis

tics

wor

kfor

ce to

one

th

at is

pre

pond

eran

tly c

ompo

sed

of m

ulti-

skill

ed g

ener

alis

ts.

CC

- W

e ha

ve b

een

or a

re b

eing

trai

ned

in n

ew

dire

ctio

ns a

nd p

rogr

ams

such

as

perfo

rman

ce-

base

d w

ork

agre

emen

ts (w

ith g

over

nmen

t pa

rtner

s) o

r con

tract

s (w

ith c

omm

erci

al fi

rms)

.

DD

- W

e ha

ve b

een

or a

re b

eing

trai

ned

in

spec

ific

area

s su

ch a

s to

tal l

ife c

ycle

ow

ners

hip

cost

s of

pro

ject

s or

pro

gram

s.

EE

- W

e ha

ve n

ot m

ade

chan

ges

to th

e tra

ditio

nal w

ays

we

deve

lop

our l

ogis

tics

wor

kfor

ce.

82In

our

org

aniz

atio

n, lo

gist

ics

pers

onne

l:

Pyr

amid

Are

a:Lo

gist

ics

Ski

lls D

evel

opm

ent

AA

- A

re c

aree

r log

istic

s pr

ofes

sion

als

BB

- A

re s

peci

alis

ts in

oth

er fi

elds

, but

hav

e si

gnifi

cant

exp

erie

nce

and

train

ing

to p

rovi

de

them

the

expe

rtise

nec

essa

ry

CC

- A

re in

the

logi

stic

s fie

ld a

s a

prer

equi

site

to

ente

ring

a m

ore

desi

rabl

e fie

ld.

DD

- A

re te

mpo

raril

y in

the

logi

stic

s fie

ld u

ntil

som

e ot

her o

ppor

tuni

ty c

omes

alo

ng.

EE

- W

e do

n't h

ave

logi

stic

s pe

rson

nel

Logi

stic

s M

atur

ity E

valu

ator

83Fo

r our

org

aniz

atio

n, a

sset

vis

ibilit

y m

eans

:

Pyr

amid

Are

a:A

sset

Vis

ibili

ty

AA

- A

n in

tegr

ated

app

roac

h th

at u

ses

know

ledg

e of

ass

et lo

catio

n an

d m

ovem

ent t

o im

prov

e su

ppor

t to

our c

usto

mer

s.

BB

- A

n ap

proa

ch to

usi

ng te

chno

logy

, fin

anci

al

reco

rds,

and

bus

ines

s pr

oces

ses

to a

llow

tim

ely

insi

ght i

nto

the

loca

tion,

iden

tity,

and

m

ovem

ent o

f inv

ento

ry a

nd e

quip

men

t.

CC

- A

met

hodo

logy

to c

ombi

ne te

chno

logy

and

bu

sine

ss p

roce

sses

to tr

ack

asse

t loc

atio

n an

d m

ovem

ent

DD

- Te

chno

logy

that

is in

pla

ce to

mon

itor t

he

loca

tion

of a

sset

s.

EE

- W

e do

not

use

that

term

in o

ur

orga

niza

tion.

84Th

e fo

llow

ing

best

des

crib

es o

ur a

genc

y's

post

ure

on a

sset

vi

sibi

lity:

Pyr

amid

Are

a:A

sset

Vis

ibili

ty

AA

- O

ur s

trate

gic

plan

incu

ldes

spe

cific

goa

ls,

obje

ctiv

es, a

nd m

ilest

ones

for i

mpl

emen

ting

full

mat

eria

l ass

et v

isib

ility

.

BB

- O

ur s

trate

gic

plan

men

tions

the

need

for

mat

eria

l ass

et v

isib

ility

.

CC

- W

e ha

ve a

n on

goin

g in

itativ

e to

ach

ieve

gr

eate

r mat

eria

l ass

et v

isib

ility

.

DD

- N

o ad

ditio

nal p

lann

ing

is n

eede

d in

the

area

of a

sset

vis

ibilit

y.

EE

- W

e ha

ve n

ot id

entif

ied

an a

sset

bis

ibili

ty

requ

irem

ent.

A-24

Logi

stic

s M

atur

ity E

valu

ator

85As

set v

isib

ility

is in

clud

ed in

our

org

aniz

atio

n's

logi

stic

s tra

inin

g in

th

e fo

llow

ing

man

ner:

Pyr

amid

Are

a:A

sset

Vis

ibili

ty

AA

- M

ost p

rinci

pal m

anag

ers

and

key

empl

oyee

s ha

ve re

ceiv

ed s

ome

form

aliz

ed

asse

t vis

ibilit

y tra

inin

g.

BB

- O

ur o

rgan

izat

ion

has

initi

ated

or p

lans

to

prov

ide

form

aliz

ed a

sset

vis

ibili

ty tr

aini

ng to

ex

ecut

ives

and

em

ploy

ees.

CC

- M

anag

ers

and

empl

oyee

s ne

ed to

fa

mili

ariz

e th

emse

lves

with

ass

et v

isib

ility

co

ncep

ts, p

ract

ices

, and

tech

nolo

gy.

DD

- E

mpl

oyee

s re

ceiv

e ba

sic

train

ing

on th

e te

chno

logy

use

d fo

r ass

et v

isib

ility

.

EE

- A

sset

vis

ibili

ty tr

aini

ng is

not

requ

ired

in o

ur

orga

niza

tion.

86Th

e fo

llow

ing

best

des

crib

es h

ow o

ur a

genc

y us

es a

sset

vis

ibilit

y in

det

erm

inin

g ov

eral

l mat

eria

l bud

get r

equi

rem

ents

for

acqu

isiti

on a

nd m

anag

emen

t:

Pyr

amid

Are

a:A

sset

Vis

ibili

ty

AA

- W

e ha

ve fu

ll vi

sibi

lity

of m

ater

ial a

sset

s in

ou

r req

uire

men

ts a

nd b

udge

ting

proc

ess

and

use

this

info

rmat

ion

to c

ompu

te fu

ndin

g re

quire

men

ts.

BB

- O

ur b

udge

ting

proc

ess

take

s av

aila

ble

asse

ts in

to a

ccou

nt in

det

erm

inin

g fu

ture

re

quire

men

ts.

CC

- W

e ha

ve a

sset

vis

ibili

ty b

ut d

o no

t ne

cess

arily

use

this

info

rmat

ion

in o

ur

budg

etin

g pr

oces

s.

DD

- W

e do

not

hav

e as

set v

isib

ility

info

rmat

ion

avai

labl

e in

our

aut

omat

ed s

yste

ms.

EE

- E

ach

indi

vidu

al o

rgan

izat

iona

l com

pone

nt

is re

spon

sibl

e fo

r its

ow

n us

se o

f ass

et

info

rmat

ion.

Logi

stic

s M

atur

ity E

valu

ator

87Th

e fo

llow

ing

best

des

crib

es h

ow IT

Tec

hnol

ogy

solu

tions

that

en

able

ass

et v

isib

ility

, suc

h as

RFI

D a

nd b

ar c

odes

, are

im

plem

ente

d as

par

t of o

ur o

vera

ll pr

oces

s im

prov

emen

t stra

tegy

:

Pyr

amid

Are

a:A

sset

Vis

ibili

ty

AA

- W

e ha

ve m

ajor

initi

ativ

es u

nder

way

to u

se

tech

nolo

gy e

nabl

ers

to im

prov

e ou

r vis

ibilit

y of

m

ater

ial a

sset

s.

BB

- W

e pl

an to

use

ass

et v

isib

ility

tech

nolo

gies

in

the

futu

re.

CC

- W

e ar

e no

t cer

tain

we

need

new

te

chno

logi

es in

this

are

a.

DD

- O

ur a

sset

vis

ibili

ty re

quire

men

ts d

on't

real

ly re

quire

sig

nific

ant n

ew te

chon

olog

y in

vest

men

ts.

EE

- W

e ha

ve n

o as

set v

isib

ility

requ

irem

ent.

88O

ur o

rgan

izat

ion'

s as

set v

isib

ility

tech

nolo

gy c

onsi

sts

of:

Pyr

amid

Are

a:A

sset

Vis

ibili

ty

AA

- R

eal-t

ime,

act

ive

iden

tific

atio

n an

d tra

ckin

g of

all

of o

ur e

quip

men

t and

sup

plie

s.

BB

- R

eal-t

ime,

act

ive

iden

tific

atio

n of

mos

t (bu

t no

t all)

of o

ur e

quip

men

t and

sup

plie

s.

CC

- R

ecor

ding

loca

tions

of s

ome

of o

ur

equi

pmen

t and

sup

plie

s, w

ith e

noug

h le

ad-

time

to a

ffect

inve

ntor

y de

cisi

ons.

DD

- R

ecor

ding

loca

tions

of s

ome

of o

ur

equi

pmen

t and

sup

plie

s, w

ith to

o lit

tle le

ad-

time

to a

ffect

inve

ntor

y de

cisi

ons.

EE

- W

e do

not

hav

e an

y as

set v

isib

ility

tech

nolo

gy.

A-25

Logi

stic

s M

atur

ity E

valu

ator

89In

our

org

aniz

atio

n, a

sset

vis

ibilit

y is

use

d in

the

follo

win

g ar

eas:

Pyr

amid

Are

a:A

sset

Vis

ibili

ty

AA

- In

vent

ory

man

agem

ent,

supp

ly c

hain

m

anag

emen

t, as

set m

anag

emen

t, de

man

d fo

reca

stin

g, b

udge

t pla

nnin

g, a

nd a

cqui

sitio

n de

cisi

ons.

BB

- In

vent

ory

man

agem

ent a

nd s

uppl

y ch

ain

man

agem

ent.

CC

- In

vent

ory

and

finan

cial

man

agem

ent.

DD

- D

istri

butio

n fu

nctio

ns o

nly.

EE

- W

e do

not

use

it in

our

org

aniz

atio

n.

90Th

e fo

llow

ing

best

des

crib

es o

ur o

rgan

izat

ion'

s pl

ans

to d

evel

op

ente

rpris

e-w

ide

met

rics

to a

sses

s m

ater

ial a

sset

vis

ibili

ty, b

oth

inte

rnal

ly a

nd fr

om o

ur c

usto

mer

's p

oint

of v

iew

:

Pyr

amid

Are

a:A

sset

Vis

ibili

ty

AA

- W

e ha

ve c

apab

ilitie

s in

pla

ce to

mea

sure

th

e ef

fect

iven

ess

and

accu

racy

of o

ur a

sset

bi

sibi

lity

prog

ram

.

BB

- A

sset

vis

ibili

ty m

eaus

res

are

part

of o

ur

futu

re p

roce

ss im

prov

emen

t req

uire

men

ts.

CC

- W

e ha

ve n

ot y

et id

entif

ied

a ne

ed to

m

easu

re a

sset

vis

ibili

ty e

ffect

iven

ess.

DD

- O

ur a

sset

vis

ibili

ty p

rogr

am d

oes

not n

eed

addi

tiona

l mea

nsur

es o

f effe

ctiv

enes

s.

EE

- W

e do

not

hav

e a

mat

eria

l ass

et v

isib

ility

pr

ogra

m.

Logi

stic

s M

atur

ity E

valu

ator

91Fu

nctio

nal i

nteg

ratio

n is

a s

tate

d go

al o

f our

logi

stic

s st

rate

gic

plan

Pyr

amid

Are

a:Fu

nctio

nal I

nteg

ratio

n

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

92O

ur lo

gist

ics

proc

esse

s an

d sy

stem

s ar

e:

Pyr

amid

Are

a:Fu

nctio

nal I

nteg

ratio

n

AA

- S

trong

ly in

tegr

ated

with

ope

ratio

ns, t

he

cust

omer

and

our

sup

ply

chai

n pa

rtner

s

BB

- S

trong

ly in

tegr

ated

with

ope

ratio

ns a

nd o

ur

cust

omer

s

CC

- In

tegr

ated

with

oth

er lo

gist

ics

and

finan

ce

proc

esse

s an

d sy

stem

s

DD

- In

tegr

ated

with

oth

er lo

gist

ics

proc

esse

s an

d sy

stem

s

EE

- O

ur lo

gist

ics

proc

esse

s an

d sy

stem

s ar

e no

t int

egra

ted

A-26

Logi

stic

s M

atur

ity E

valu

ator

93Th

e fo

llow

ing

best

des

crib

es o

ur a

genc

y's

logi

stic

s da

ta

stan

dard

izat

ion

and

inte

grat

ion:

Pyr

amid

Are

a:Fu

nctio

nal I

nteg

ratio

n

AA

- D

ata

is s

tand

ardi

zed,

cap

ture

d on

e tim

e an

d di

strib

uted

to re

late

d us

ers

and

syst

ems.

BB

- D

ata

is n

ot s

tand

ardi

zed,

cap

ture

d on

e tim

e an

d di

strib

uted

to re

late

d us

ers

and

syst

ems.

CC

- D

ata

is in

tegr

ated

thro

ugh

man

ual

inte

rven

tion

betw

een

syst

ems.

DD

- D

ata

is s

tore

d on

indi

vidu

al "c

uff s

yste

ms"

.

EE

- O

ur d

ata

is n

ot in

tegr

ated

.

94O

ur lo

gist

ics

man

agem

ent a

nd s

taff

are

awar

e of

the

role

s an

d re

spon

sibi

litie

s of

oth

er o

rgan

izat

ions

' log

istic

s ac

tiviti

es.

Pyr

amid

Are

a:Fu

nctio

nal I

nteg

ratio

n

AA

- A

ll pe

rson

nel a

re c

ross

-trai

ned

in s

ever

al

func

tions

.

BB

- M

anag

ers

and

supe

rvis

ors

are

train

ed in

se

vera

l are

as

of o

rgan

izat

iona

l res

pons

ibilit

y.

CC

- O

nly

uppe

r lev

el m

anag

ers

need

to b

e aw

are

of o

ther

org

aniz

atio

n's

resp

onsi

bilit

ies.

DD

- O

nly

man

ager

s an

d su

perv

isor

s ar

e tra

ined

in a

reas

out

side

our

org

aniz

atio

n

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

Logi

stic

s M

atur

ity E

valu

ator

95Th

e fo

llow

ing

best

des

crib

es th

e re

latio

nshi

p be

twee

n lo

gist

ics

and

oper

atio

ns in

our

age

ncy:

Pyr

amid

Are

a:Fu

nctio

nal I

nteg

ratio

n

AA

- Lo

gist

ics

is a

n eq

ual p

artn

er w

ith

oper

atio

ns in

ach

ievi

ng o

ur to

tal o

rgan

izat

iona

l m

issi

on.

BB

- M

anag

emen

t rec

ogni

zes

that

ope

ratio

ns

cann

ot s

ucce

ed w

ithou

t effe

ctiv

e lo

gist

ics

supp

ort.

CC

- Lo

gist

ics

is o

ne a

spec

t of s

ucce

ssfu

l op

erat

ions

.

DD

- O

pera

tiona

l nee

ds m

ust c

ome

befo

re

logi

stic

s su

ppor

t nee

ds.

EE

- Lo

gist

ics

is n

ot p

art o

f our

org

aniz

atio

n's

mis

sion

.

96In

our

org

aniz

atio

n, e

nter

pris

e fu

nctio

nal i

nteg

ratio

n is

mea

sure

d by

:

Pyr

amid

Are

a:Fu

nctio

nal I

nteg

ratio

n

AA

- M

anag

emen

t ass

essm

ent o

f ent

erpr

ise

perfo

rman

ce m

etric

s th

at re

late

to o

vera

ll pr

oces

s pe

rform

ance

, tot

al c

ost a

nd c

usto

mer

sa

tisfa

ctio

n.

BB

- S

peci

fic m

etric

s ap

plic

able

to e

ach

logi

stic

s m

anag

er th

at c

olle

ctiv

ely

cont

ribut

e to

ov

eral

l org

aniz

atio

nal i

nteg

ratio

n.

CC

- A

nnua

l ass

essm

ents

by

our m

anag

ers

who

det

erm

ine

how

muc

h in

tegr

ated

effo

rt is

ne

eded

.

DD

- R

ando

m fe

edba

ck fr

om o

ur p

rimar

y cu

stom

ers.

EE

- Fu

nctio

nal i

nteg

ratio

n is

not

qua

ntita

tivel

y m

easu

red.

A-27

Logi

stic

s M

atur

ity E

valu

ator

97In

our

org

aniz

atio

n, fu

nctio

nal i

nteg

ratio

n ob

ject

ives

are

su

ppor

ted

by:

Pyr

amid

Are

a:Fu

nctio

nal I

nteg

ratio

n

AA

- P

roce

dure

s w

here

mor

e in

tegr

ated

fu

nctio

nal a

reas

are

per

mitt

ed to

reta

in

impr

ovem

ent s

avin

gs re

late

d to

ach

ievi

ng

over

all o

rgan

izat

iona

l obj

ectiv

es.

BB

- In

crea

sing

allo

catio

n of

reso

urce

s to

fu

nctio

nal e

lem

ents

that

con

tribu

te s

igni

fican

tly

to a

fully

inte

grat

ed p

roce

ss.

CC

- G

ivin

g so

me

addi

tiona

l res

ourc

es to

or

gani

zatio

nal a

ctiv

ities

that

are

dee

med

im

porta

nt to

gre

ater

inte

grat

ion.

DD

- Fu

nctio

nal i

nteg

ratio

n is

not

con

side

red

whe

n al

loca

ting

reso

urce

s.

EE

- Fu

nctio

nal i

nteg

ratio

n ha

s no

rela

tions

hip

to re

sour

ces.

98M

ost m

ajor

dec

isio

ns c

once

rnin

g lo

gist

ics

are

disc

usse

d at

:

Pyr

amid

Are

a:Fu

nctio

nal I

nteg

ratio

n

AA

- C

ross

-func

tiona

l tea

m m

eetin

gs th

at

incl

ude

oper

ator

s (c

usto

mer

s), l

ogis

ticia

ns a

nd

othe

r sup

porti

ng e

lem

ents

suc

h as

the

CFO

, C

IO, a

nd h

uman

reso

urce

s.

BB

- C

ross

-func

tiona

l tea

m m

eetin

gs th

at

incl

ude

oper

ator

s (c

usto

mer

s) a

nd lo

gist

icia

ns.

CC

- C

ross

-func

tiona

l tea

m m

eetin

gs th

at

incl

ude

only

logi

stic

ians

.

DD

- Th

e in

divi

dual

pro

cess

leve

l.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

Logi

stic

s M

atur

ity E

valu

ator

99O

ur o

rgan

izat

ion'

s fo

rmal

qua

lity

impr

ovem

ent p

rogr

am c

an b

e ch

arac

teriz

ed a

s:

Pyr

amid

Are

a:Q

ualit

y Im

prov

emen

t Pro

gram

AA

- Hig

hly

effe

ctiv

e

BB

- S

omew

hat e

ffect

ive.

CC

- M

inim

ally

effe

ctiv

e

DD

- N

ot E

ffect

ive.

EE

- W

e do

n't h

ave

a qu

ality

pro

gram

.

100

Posi

tive

resu

lts o

f our

logi

stic

s qu

ality

impr

ovem

ent p

rogr

am is

:

Pyr

amid

Are

a:Q

ualit

y Im

prov

emen

t Pro

gram

AA

- A

prio

rity

of a

ll ou

r age

ncy

exec

utiv

es

BB

- A

prio

rity

of o

nly

our l

ogis

tics

man

ager

s an

d ex

ecut

ives

CC

- A

prio

rity

of o

ur d

irect

orat

e an

d di

visi

on

man

ager

s

DD

- A

prio

rity

of th

e pr

oces

s ow

ners

EE

- W

e do

not

hav

e a

logi

sitc

s qu

ality

im

prov

emen

t pro

gram

.

A-28

Logi

stic

s M

atur

ity E

valu

ator

101

Our

qua

lity

impr

ovem

ent p

rogr

am is

wid

ely

know

n, u

nder

stoo

d an

d ac

cept

ed a

t all

leve

ls o

f the

org

aniz

atio

n.

Pyr

amid

Are

a:Q

ualit

y Im

prov

emen

t Pro

gram

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

102

The

follo

win

g be

st d

escr

ibes

the

stat

e of

our

qua

lity

impr

ovem

ent

syst

em tr

aini

ng p

rogr

am:

Pyr

amid

Are

a:Q

ualit

y Im

prov

emen

t Pro

gram

AA

- A

ll pe

rson

nel a

re tr

aine

d

BB

- M

anag

ers

and

supe

rvis

ors

are

train

ed

CC

- O

nly

uppe

r lev

el m

anag

ers

DD

- O

nly

non

man

ager

s an

d su

perv

isor

s ar

e tra

ined

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

Logi

stic

s M

atur

ity E

valu

ator

103

Our

qua

lity

impr

ovem

ent s

yste

m c

an b

e fo

und:

Pyr

amid

Are

a:Q

ualit

y Im

prov

emen

t Pro

gram

AA

- In

tegr

ated

thro

ugho

ut a

ll le

vels

and

pr

oces

ses

in o

ur lo

gist

ics

activ

ities

.

BB

- N

ot in

tegr

ated

, but

sep

arat

ely

exec

ture

d at

al

l lev

els

and

proc

esse

s in

our

logi

stic

s ac

tiviti

es.

CC

- In

our

mos

t im

porta

nt lo

gist

ics

activ

ities

.

DD

- In

onl

y a

few

logi

sitc

s ac

tiviti

es.

EE

- W

e do

not

hav

e a

qual

ity im

prov

emen

t sy

stem

for l

ogis

tics.

104

In o

ur o

rgan

izat

ion,

reso

urce

s ar

e pr

ovid

ed to

pro

mot

e gr

eate

r pr

oduc

t/ser

vice

qua

lity

by:

Pyr

amid

Are

a:Q

ualit

y Im

prov

emen

t Pro

gram

AA

- P

rogr

amm

ing

and

budg

etin

g re

sour

ces

dire

ctly

for q

ualit

y im

prov

emen

t act

ions

and

in

itiat

ives

.

BB

- E

nsur

ing

that

all

logi

stic

s or

gani

zatio

ns

iden

tify

qual

ity im

prov

emen

t req

uire

men

ts a

s pa

rt of

thei

r goa

ls a

nd o

bjec

tives

.

CC

- W

orki

ng c

lose

ly w

ith th

e qu

ality

con

trol

offic

e.

DD

- B

uild

ing

qual

ity in

to o

ur p

rodu

cts/

serv

ices

.

EE

- Our

org

aniz

atio

n is

not

resp

onsi

ble

for

fund

ing

prod

uct/s

ervi

ce q

ualit

y.

A-29

Logi

stic

s M

atur

ity E

valu

ator

105

Qua

lity

impr

ovem

ent i

n lo

gist

ics

is p

art o

f our

:

Pyr

amid

Are

a:Q

ualit

y Im

prov

emen

t Pro

gram

AA

- C

orpo

rate

per

form

ance

mea

sure

men

t pr

ogra

m

BB

- O

vera

ll lo

gist

ics

perfo

rman

ce

mea

sure

men

t pro

gram

CC

- In

divi

dual

dire

ctor

ate

or d

ivis

ion

perfo

rman

ce m

easu

rem

ent p

rogr

am

DD

- P

roce

ss le

vel r

evie

ws

EE

- Q

ualit

y Im

prov

emen

ts a

re n

ot m

easu

red

106

Our

org

aniz

atio

n ha

s a

proc

ess

to s

tand

ardi

ze s

uppl

ies,

eq

uipm

ent a

nd p

roce

sses

to re

duce

cos

ts.

Pyr

amid

Are

a:C

ost R

educ

tion

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

Logi

stic

s M

atur

ity E

valu

ator

107

To c

ontro

l log

istic

s co

sts,

we

use

outp

uts

from

:

Pyr

amid

Are

a:C

ost R

educ

tion

AA

- B

oth

our l

ogis

itcs

and

finan

ce s

yste

ms

BB

- O

nly

our f

inan

ce s

yste

ms

CC

- O

ur lo

cal s

tand

alon

e co

st s

yste

m

DD

- E

stim

ates

mad

e fro

m p

oint

obs

erva

tions

EE

- W

e do

not

man

age

by c

ost

108

We

use

Act

ivity

Bas

ed C

ostin

g to

man

age:

Pyr

amid

Are

a:C

ost R

educ

tion

AA

- A

ll lo

gist

ics

activ

ities

as

an in

tegr

ated

cos

t

BB

- A

ll lo

gist

ics

as in

depe

nden

t cos

ts

CC

- O

nly

sele

cted

logi

stic

s ac

tiviti

es

DD

- O

nly

certa

in lo

gist

ics

proc

esse

s

EE

- W

e do

not

use

Act

ivity

Bas

ed C

ostin

g

A-30

Logi

stic

s M

atur

ity E

valu

ator

109

Rep

ortin

g an

d as

sess

ing

cost

s is

an

impo

rtant

par

t of o

ur

perfo

rman

ce m

easu

res.

Pyr

amid

Are

a:C

ost R

educ

tion

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

110

Our

dec

isio

ns in

rega

rd to

org

aniz

ing

and

staf

fing

logi

stic

s ac

tiviti

es a

re b

ased

prim

arily

on

best

val

ue u

se o

f res

ourc

es.

Pyr

amid

Are

a:C

ost R

educ

tion

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

Logi

stic

s M

atur

ity E

valu

ator

111

In o

ur o

rgan

izat

ion,

our

phi

loso

phy

abou

t out

sour

cing

is:

Pyr

amid

Are

a:C

ost R

educ

tion

AA

- O

utso

urce

whe

n th

ere

is a

cos

t adv

anta

ge,

no o

pera

tiona

l ris

k, a

nd th

e fu

nctio

n is

not

a

core

com

pete

ncy

BB

- O

nly

whe

n th

ere

is a

cos

t adv

anta

ge a

nd a

no

n-co

re c

ompe

tenc

y

CC

- A

lway

s w

hen

ther

e is

a c

ost a

dvan

tage

re

gard

less

of r

isk

and

core

com

pete

ncie

s

DB

- Lo

gist

ics

core

com

pete

ncie

s w

ill no

t be

outs

ourc

ed re

gard

less

of c

ost a

dvan

tage

EE

- A

ll lo

gist

ics

is o

utso

urce

d as

a m

atte

r of

cour

se.

112

The

inte

grat

ion

and

stre

amlin

ing

of o

ur b

usin

ess

proc

esse

s to

re

duce

the

over

all c

ost o

f log

istic

s su

ppor

t for

suc

h el

emen

ts a

s m

aint

enan

ce, s

uppl

y, d

istri

butio

n, a

nd tr

ansp

orta

tion

is:

Pyr

amid

Are

a:C

ost R

educ

tion

AA

- P

art o

f our

cor

pora

te s

trate

gic

plan

BB

- P

art o

f our

logi

stic

s bu

sine

ss p

lan

CC

- U

p to

the

vario

us lo

gist

ics

dire

ctor

ates

and

di

visi

ons

DD

- U

p to

the

indi

viua

l pro

cess

ow

ners

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

A-31

Logi

stic

s M

atur

ity E

valu

ator

113

Cos

t inf

orm

atio

n fo

r log

istic

s pr

oces

s ar

e:

Pyr

amid

Are

a:C

ost R

educ

tion

AA

- Ava

ilabl

e fro

m a

n in

tegr

ated

bus

ines

s sy

stem

s an

d ar

e av

aila

ble

to a

ll le

vels

of

man

agem

ent.

BB

- Av

aila

ble

from

sev

eral

bus

ines

s sy

stem

s an

d ar

e av

aila

ble

to a

ll le

vels

of m

anag

emen

t.

CC

- Av

aila

ble

from

our

bus

ines

s sy

stem

s bu

t re

quire

spe

cial

repo

rts.

DD

- N

ot p

art o

f our

bus

ines

s sy

stem

s an

d ar

e m

aint

aine

d of

f-lin

e.

EE

- N

ot m

aint

aine

d at

all.

114

Whi

ch s

tate

men

t bes

t des

crib

es o

ur o

rgan

izat

ion'

s ap

proa

ch to

Su

pplie

r Rel

atio

nshi

p M

anag

emen

t:

Pyr

amid

Are

a:S

uppl

ier R

elat

ions

hip

Man

agem

ent

AA

- O

ur A

genc

y ha

s a

clea

r vis

ion

of w

ho it

s su

pplie

rs a

re a

nd a

stra

tegy

for d

evel

opin

g bu

sine

ss re

latio

nshi

ps w

ith th

em to

opt

imiz

e su

pply

cha

in p

erfo

rman

ce.

BB

- O

ur A

genc

y is

fam

iliar w

ith th

e pr

inci

ples

of

SR

M a

nd h

as p

lans

to a

dopt

it.

CC

- O

ur A

genc

y is

sat

isfie

d w

ith th

e su

ppor

t cu

rren

tly p

rovi

ded

by s

uppl

iers

and

ther

efor

e do

es n

ot n

eed

to a

dopt

SR

M.

DD

- O

ur A

genc

y w

ould

like

to a

dopt

SR

M b

ut is

un

able

to d

o so

bec

ause

of p

rocu

rem

ent

regu

latio

ns, f

undi

ng, o

r per

sonn

el c

onst

rain

ts.

EE

- O

ur A

genc

y do

es n

ot c

onsi

der S

RM

to b

e ap

plic

able

to it

s op

erat

ions

.

Logi

stic

s M

atur

ity E

valu

ator

115

The

follo

win

g be

st d

escr

ibes

the

stat

e of

Sup

plie

r Rel

atio

nshi

p M

anag

emen

t (S

RM

) in

our o

rgan

izat

ion:

Pyr

amid

Are

a:S

uppl

ier R

elat

ions

hip

Man

agem

ent

AA

- O

ur s

taff

is tr

aine

d an

d kn

owle

dgea

ble,

an

d en

gage

d in

app

lyin

g S

RM

.

BB

- O

ur s

taff

is tr

aine

d an

d kn

owle

dgea

ble

abou

t how

to a

pply

SR

M b

ut o

nly

has

the

time

to w

ork

on S

RM

on

a lim

ited

basi

s.

CC

- O

ur a

genc

y re

lies

exte

nsiv

ely

on

cont

ract

ors

to a

pply

SR

M.

DD

- O

ur a

genc

y re

lies

occa

sion

ally

on

cont

ract

ors

to a

pply

SR

M.

EE

- O

ur a

genc

y do

es n

ot e

ngag

e in

SR

M.

116

Our

bud

get a

nd p

rogr

am p

lan

incl

udes

ade

quat

e pe

rson

nel a

nd

fund

ing

to e

ffect

ivel

y an

d ef

ficie

ntly

app

ly S

RM

:

Pyr

amid

Are

a:S

uppl

ier R

elat

ions

hip

Man

agem

ent

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n.

A-32

Logi

stic

s M

atur

ity E

valu

ator

117

Whi

ch s

tate

men

t bes

t des

crib

es th

e st

atus

of y

our o

rgan

izat

ion'

s SR

M te

chno

logy

or s

oftw

are?

Pyr

amid

Are

a:S

uppl

ier R

elat

ions

hip

Man

agem

ent

AA

- O

ur A

genc

y un

ders

tand

s an

d ap

plie

s cu

rren

t sta

te-o

f-the

-art

SR

M te

chno

logy

, so

ftwar

e an

d te

chni

ques

to m

ost o

f our

op

erat

ions

.

BB

- O

ur A

genc

y un

ders

tand

s an

d ap

plie

s cu

rren

t sta

te-o

f-the

-art

SR

M te

chno

logy

and

te

chni

ques

to a

sel

ect f

ew o

pera

tions

.

CC

- A

sup

port

cont

ract

or u

nder

stan

ds a

nd

appl

ies

curr

ent s

tate

-of-t

he-a

rt S

RM

te

chno

logy

, sof

twar

e or

tech

niqu

es to

mos

t of

our o

pera

tions

.

DD

- A

sup

port

cont

ract

or u

nder

stan

ds a

nd

appl

ies

curr

ent s

tate

-of-t

he-a

rt S

RM

te

chno

logy

, sof

twar

e o

r tec

hniq

ues

to s

ome

of

our o

pera

tions

.

EE

- W

e ha

ve n

o si

gnifi

cant

tech

nolo

gy s

yste

m

supp

ortin

g ou

r SR

M e

fforts

.

118

Whi

ch s

tate

men

t bes

t des

crib

es th

e st

atus

of y

our o

rgan

izat

ion'

s SR

M p

roce

sses

?

Pyr

amid

Are

a:S

uppl

ier R

elat

ions

hip

Man

agem

ent

AA

- O

ur A

genc

y's

and

our s

uppl

iers

' wor

k pr

oces

ses

are

stab

le a

nd w

ell u

nder

stoo

d by

ou

r SR

M p

ract

ition

ers

BB

- O

ur A

genc

y's

and/

or o

ur s

uppl

iers

' wor

k pr

oces

ses

are

unde

rgoi

ng c

hang

es th

at m

ake

it di

fficu

lt to

app

ly S

RM

at t

his

time.

CC

- O

ur A

genc

y ca

n ap

ply

SR

M to

som

e bu

t no

t all

wor

k pr

oces

ses.

DD

- O

ur A

genc

y's

and/

or o

ur s

uppl

iers

' wor

k pr

oces

ses

are

not w

ell u

nder

stoo

d, m

akin

g it

diffi

cult

to d

ecid

e w

here

and

how

to a

pply

S

RM

.

EE

- O

ur A

genc

y an

d/or

our

cus

tom

ers

do n

ot

expe

ct to

use

SR

M in

our

dea

lings

with

eac

h ot

her.

Logi

stic

s M

atur

ity E

valu

ator

119

Whi

ch s

tate

men

t bes

t des

crib

es S

RM

per

form

ance

in y

our

orga

niza

tion.

Pyr

amid

Are

a:S

uppl

ier R

elat

ions

hip

Man

agem

ent

AA

- W

e ha

ve S

RM

per

form

ance

out

com

e st

anda

rds

that

are

cur

rent

and

gen

eral

ly w

ell

unde

rsto

od a

nd ri

goro

usly

mon

itore

d.

BB

- W

e ha

ve S

RM

per

form

ance

out

com

e st

anda

rds

that

are

cur

rent

and

gen

eral

ly w

ell

unde

rsto

od b

ut a

re n

ot a

lway

s rig

orou

sly

mon

itore

d.

CC

- W

e ha

ve S

RM

per

form

ance

out

com

e st

anda

rds

that

are

not

cur

rent

or w

ell

unde

rsto

od.

DD

- W

e re

ly o

n co

ntra

ctor

s to

man

age

SR

M

perfo

rman

ce o

utco

me

stan

dard

s.

EE

- W

e do

not

hav

e S

RM

per

form

ance

ou

tcom

e st

anda

rds.

120

A ba

lanc

ed s

core

card

is a

sig

nific

ant p

art o

f our

stra

tegi

c pl

an.

Pyr

amid

Are

a:B

alan

ced

Scor

ecar

d/B

ench

mar

king

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

A-33

Logi

stic

s M

atur

ity E

valu

ator

121

Our

bal

ance

d sc

ore

card

incl

udes

:

Pyr

amid

Are

a:B

alan

ced

Scor

ecar

d/B

ench

mar

king

AA

- P

erfo

rman

ce, C

ost,

Kno

wle

dge

Dev

elop

men

t and

Cus

tom

er s

atis

fact

ion

mea

sure

s

BB

- P

rimar

ily p

erfo

rman

ce a

nd c

ost m

etric

s

CC

- P

rimar

ily c

ost a

nd b

udge

t inf

orm

atio

n

DD

- A

num

ber o

f wel

l-doc

umen

ted

met

rics.

EE

- O

ur o

rgan

izat

ion

does

not

use

a b

alan

ced

scor

ecar

d ap

proa

ch.

122

Our

org

aniz

atio

n ha

s an

act

ive

benc

hmar

king

pro

gram

with

oth

er

gove

rnm

ent a

genc

ies

or p

rivat

e bu

sine

sses

Pyr

amid

Are

a:B

alan

ced

Scor

ecar

d/B

ench

mar

king

AA

- Fo

r mor

e th

an 5

yea

rs

BB

- Fo

r 3 to

5 y

ears

CC

- Fo

r 1 to

2 y

ears

DD

- D

one

occa

sion

ally

EE

- O

ur O

rgan

izat

ion

does

not

use

be

nchm

arki

ng.

Logi

stic

s M

atur

ity E

valu

ator

123

The

info

rmat

ion

sour

ce th

at w

e us

e to

sup

port

our b

alan

ced

scor

e ca

rd is

:

Pyr

amid

Are

a:B

alan

ced

Scor

ecar

d/B

ench

mar

king

AA

- A

dire

ct fe

ed fr

om th

e da

ta s

ystm

es th

at

we

use

for o

ur d

ay-to

-day

bus

ines

s pr

oces

ses.

BB

- Fr

om s

peci

al re

ports

from

our

bus

ines

s sy

stem

s th

at w

e ru

n pe

riodi

cally

.

CC

- C

aptu

red

off-l

ine

from

obj

ectiv

e ob

serv

atio

ns a

nd re

ports

from

our

bus

ines

s sy

stem

s.

DD

- A

col

lect

ion

of n

otio

nal d

ata.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

124

Our

exe

cutiv

es a

re k

ept f

amilia

r with

our

bal

ance

d sc

orec

ard:

Pyr

amid

Are

a:B

alan

ced

Scor

ecar

d/B

ench

mar

king

AA

- With

qua

rterly

or s

emi-a

nnua

l sch

edul

ed

brie

fings

and

dis

cuss

ions

.

BB

- W

ith a

nnua

l sch

edul

ed b

riefin

gs a

nd

disc

ussi

ons.

CC

- A

d ho

c re

ques

ts.

DD

- W

ith ra

re re

view

s of

our

bal

ance

d sc

ore

card

.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

A-34

Logi

stic

s M

atur

ity E

valu

ator

125

Res

ourc

e al

loca

tion

deci

sion

s ar

e us

ually

mad

e ba

sed

on th

e ou

tcom

es o

f our

bal

ance

d sc

orec

ard

ass

essm

ents

.

Pyr

amid

Are

a:B

alan

ced

Scor

ecar

d/B

ench

mar

king

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

126

The

follo

win

g be

st d

escr

ibes

the

use

of b

ench

mar

king

as

a ba

sis

for d

ecis

ion

mak

ing

in o

ur a

genc

y:

Pyr

amid

Are

a:B

alan

ced

Scor

ecar

d/B

ench

mar

king

AA

- W

e us

e ob

serv

atio

ns fr

om o

ur

benc

hinm

arki

ng p

artn

ers

BB

- W

e us

e ob

erva

tions

from

like

or

gani

zatio

ns, b

ut n

ot fo

rmal

ben

chm

arki

ng

partn

ers

CC

- W

e us

e w

idel

y ac

cept

ed n

atio

nal t

rend

s

DD

- W

e us

e no

tiona

l dat

a

EE

- W

e do

not

use

ben

chm

arki

ng.

Logi

stic

s M

atur

ity E

valu

ator

127

We

have

impl

emen

ted

a ba

lanc

ed s

core

card

mea

sure

men

t sy

stem

in o

ur o

rgan

izat

ion

that

:

Pyr

amid

Are

a:B

alan

ced

Scor

ecar

d/B

ench

mar

king

AA

- P

rovi

des

a ra

nge

of p

erfo

rman

ce m

etric

s th

at m

anag

emen

t use

s to

mea

sure

ove

rall

orga

niza

tiona

l effe

ctiv

enes

s.

BB

- Id

entif

ies

seve

ral p

erfo

rman

ce m

easu

res

that

we

use

in m

easu

ring

prog

ress

tow

ard

our

own

goal

s an

d ob

ject

ives

.

CC

- A

re g

ood

mea

sure

s, b

ut a

re n

ot g

ener

ally

us

ed to

sup

port

man

agem

ent d

ecis

ions

.

DD

- In

clud

es s

ome

mea

sure

s th

at a

re n

ot

dire

ctly

rela

ted

to o

ur p

roce

ss e

ffect

iven

ess.

EE

- In

clud

es s

ome

mea

sure

s th

at m

ay b

e co

nflic

ting

in p

urpo

se.

128

Whi

ch s

tate

men

t bes

t des

crib

es o

ur o

rgan

izat

ion'

s m

anag

emen

t ap

proa

ch to

cus

tom

er re

latio

nshi

p m

anag

emen

t?

Pyr

amid

Are

a:C

usto

mer

Rel

atio

nshi

p M

anag

emen

t

AA

- O

ur A

genc

y ha

s do

ne C

RM

rese

arch

and

ha

s a

clea

r vis

ion

of w

ho it

s cu

stom

ers

are

and

a st

rate

gy fo

r mee

ting

the

cust

omer

s ne

eds.

BB

- O

ur A

genc

y is

fam

iliar w

ith th

e pr

inci

ples

of

CR

M a

nd h

as p

lans

to a

dopt

it.

CC

- O

ur A

genc

y, th

roug

h ex

perie

nce,

kno

ws

who

its

cust

omer

s ar

e an

d is

alre

ady

prov

idin

g ou

tsta

ndin

g se

rvic

e th

eref

ore

it do

es n

ot n

eed

to a

dopt

CR

M.

DD

- O

ur A

genc

y w

ould

like

to a

dopt

CR

M b

ut is

un

able

to d

o so

bec

ause

of f

undi

ng o

r pe

rson

nel c

onst

rain

ts.

EE

- O

ur A

genc

y do

es n

ot c

onsi

der C

RM

to b

e ap

plic

able

to it

s op

erat

ions

.

A-35

Logi

stic

s M

atur

ity E

valu

ator

129

The

follo

win

g be

st d

escr

ibes

the

stat

e of

Cus

tom

er R

elat

ions

hip

Man

agem

ent (

CR

M) i

n ou

r org

aniz

atio

n:

Pyr

amid

Are

a:C

usto

mer

Rel

atio

nshi

p M

anag

emen

t

AA

- O

ur s

taff

is tr

aine

d an

d kn

owle

dgea

ble,

an

d en

gage

d in

app

lyin

g C

RM

.

BB

- O

ur s

taff

is tr

aine

d an

d kn

owle

dgea

ble

abou

t how

to a

pply

CR

M b

ut o

nly

has

the

time

to w

ork

on C

RM

on

a lim

ited

basi

s.

CC

- O

ur a

genc

y re

lies

exte

nsiv

ely

on

cont

ract

ors

to a

pply

CR

M.

DD

- O

ur a

genc

y re

lies

occa

sion

ally

on

cont

ract

ors

to a

pply

CR

M.

EE

- O

ur a

gnec

y do

es n

ot e

ngag

e in

CR

M.

130

Our

bud

get a

nd p

rogr

am p

lan

incl

udes

ade

quat

e pe

rson

nel a

nd

fund

ing

to e

ffect

ivel

y an

d ef

ficie

ntly

app

ly C

RM

:

Pyr

amid

Are

a:C

usto

mer

Rel

atio

nshi

p M

anag

emen

t

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n.

Logi

stic

s M

atur

ity E

valu

ator

131

Whi

ch s

tate

men

t bes

t des

crib

es th

e st

atus

of y

our o

rgan

izat

ion'

s ap

plic

atio

n of

CR

M te

chno

logy

?

Pyr

amid

Are

a:C

usto

mer

Rel

atio

nshi

p M

anag

emen

t

AA

- O

ur A

genc

y un

ders

tand

s an

d ap

plie

s cu

rren

t sta

te-o

f-the

-art

CR

M te

chno

logy

and

te

chni

ques

to m

ost o

f our

ope

ratio

ns.

BB

- O

ur A

genc

y un

ders

tand

s an

d ap

plie

s cu

rren

t sta

te-o

f-the

-art

CR

M te

chno

logy

and

te

chni

ques

to a

few

of o

ur o

pera

tions

.

CC

- A

sup

port

cont

ract

or u

nder

stan

ds a

nd

appl

ies

curr

ent s

tate

-of-t

he-a

rt C

RM

te

chno

logy

and

tech

niqu

es to

mos

t of o

ur

oper

atio

ns.

DD

- Th

e te

chno

logy

sys

tem

sup

porti

ng o

ur

CR

M e

fforts

is n

ot c

urre

nt s

tate

-of-t

he-a

rt.

EE

- W

e ge

nera

lly d

on't

rela

te C

RM

to

tech

nolo

gy a

pplic

atio

ns

132

Whi

ch s

tate

men

t bes

t des

crib

es th

e st

atus

of y

our o

rgan

izat

ion'

s C

RM

pro

cess

es?

Pyr

amid

Are

a:C

usto

mer

Rel

atio

nshi

p M

anag

emen

t

AA

- O

ur A

genc

y's

and

our c

usto

mer

s' w

ork

proc

esse

s ar

e st

able

and

wel

l und

erst

ood

by

our C

RM

pra

ctiti

oner

s

BB

- O

ur A

genc

y's

and/

or o

ur c

usto

mer

s' w

ork

proc

esse

s ar

e un

derg

oing

cha

nges

that

mak

e it

diffi

cult

to a

pply

CR

M a

t thi

s tim

e.

CC

- O

ur A

genc

y ca

n ap

ply

CR

M to

som

e bu

t no

t all

wor

k pr

oces

ses.

DD

- O

ur A

genc

y's

and/

or o

ur c

usto

mer

s' w

ork

proc

esse

s ar

e no

t wel

l und

erst

ood,

mak

ing

it di

fficu

lt to

dec

ide

whe

re a

nd h

ow to

app

ly

CR

M.

EE

- O

ur A

genc

y an

d/or

our

cus

tom

ers

do n

ot

desi

re to

use

CR

M in

itiat

ives

in o

ur d

ealin

g w

ith e

ach

othe

r.

A-36

Logi

stic

s M

atur

ity E

valu

ator

133

Whi

ch s

tate

men

t bes

t des

crib

es C

RM

per

form

ance

in y

our

orga

niza

tion.

Pyr

amid

Are

a:C

usto

mer

Rel

atio

nshi

p M

anag

emen

t

AA

- W

e ha

ve C

RM

per

form

ance

out

com

e st

anda

rds

that

are

cur

rent

and

gen

eral

ly w

ell

unde

rsto

od a

nd ri

goro

usly

mon

itore

d.

BB

- W

e ha

ve C

RM

per

form

ance

out

com

e st

anda

rds

that

are

cur

rent

and

gen

eral

ly w

ell

unde

rsto

od b

ut a

re n

ot u

sual

ly ri

goro

usly

m

onito

red.

CC

- W

e ha

ve C

RM

per

form

ance

out

com

e st

anda

rds

that

are

not

cur

rent

or w

ell

unde

rsto

od.

DD

- W

e re

ly o

n co

ntra

ctor

s to

man

age

perfo

rman

ce o

utco

me

stan

dard

s.

EE

- W

e do

not

hav

e C

RM

per

form

ance

ou

tcom

e st

anda

rds.

134

For o

ur o

rgan

izat

ion,

sup

ply

chai

n m

anag

emen

t mea

ns:

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- A

n in

tegr

ated

pro

cess

that

beg

ins

with

pl

anni

ng th

e ac

quis

ition

of c

usto

mer

-driv

en

requ

irem

ents

for m

ater

ial a

nd s

ervi

ces

and

ends

with

the

deliv

ery

of m

ater

ial t

o th

e op

erat

iona

l cus

tom

er.

BB

- A

met

hodo

logy

for a

cqui

ring

mat

eria

l and

su

pply

ing

that

mat

eria

l to

our c

usto

mer

s.

CC

- In

tegr

atio

n of

the

dist

ribut

ion

and

trans

porta

tion

func

tions

to s

atis

fy c

usto

mer

or

ders

DD

- A

new

app

roac

h to

impr

ovin

g m

ater

ial

man

agem

ent.

EE

- W

e do

not

use

that

term

in o

ur o

rgan

izat

ion

Logi

stic

s M

atur

ity E

valu

ator

135

The

impl

emen

tatio

n of

sup

ply

chai

n m

anag

emen

t is

part

of o

ur

stra

tegi

c pl

an.

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

136

Our

org

aniz

atio

n's

appr

oach

to s

uppl

y ch

ain

man

agem

ent

impl

emen

tatio

n is

:

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- A

ssig

n an

inte

grat

ed te

am re

pres

entin

g al

l af

fect

ed s

ub-o

rgan

izat

ions

to a

ccom

plis

h im

plem

enta

tion.

BB

- A

ssig

n su

pply

cha

in m

anag

emen

t im

plem

enta

tion

to a

lead

org

aniz

atio

n to

ac

com

plis

h im

plem

enta

tion.

CC

- S

elec

t an

expe

rt co

ntra

ctor

to s

uppo

rt ou

r im

plem

enta

tion

effo

rt.

DD

- G

ive

each

logi

stic

s or

gani

zatio

n au

thor

ity

to im

plem

ent s

uppl

y ch

ain

man

agem

ent t

o m

eet i

ts o

wn

requ

irem

ents

.

EE

- Th

e su

pply

cha

in m

anag

emen

t con

cept

do

es n

ot a

pply

to o

ur lo

gist

ics

proc

ess.

A-37

Logi

stic

s M

atur

ity E

valu

ator

137

Whi

ch s

tate

men

t bes

t des

crib

es s

uppl

y ch

ain

man

agem

ent

train

ing

in y

our o

rgan

izat

ion.

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- M

ost p

rinci

pal m

anag

ers

and

key

empl

oyee

s ha

ve re

ceiv

ed s

ome

form

aliz

ed

supp

ly c

hain

man

agem

ent t

rain

ing.

BB

- O

ur o

rgan

izat

ion

has

initi

ated

or p

lans

to

prov

ide

supp

ly c

hain

man

agem

ent t

rain

ing

to

exec

utiv

es a

nd e

mpl

oyee

s.

CC

- M

anag

ers

and

empl

oyee

s ne

ed to

fa

milia

rize

them

selv

es w

ith s

uppl

y ch

ain

man

agem

ent c

once

pts

and

prac

tices

.

DD

- E

ach

orga

niza

tiona

l ele

men

t is

resp

onsi

ble

for e

nsur

ing

empl

oyee

s ar

e tra

ined

in s

uppl

y ch

ain

man

agem

ent.

EE

- S

uppl

y ch

ain

man

agem

ent t

rain

ing

is n

ot

requ

ired

in o

ur o

rgan

izat

ion.

138

Our

org

aniz

atio

n's

appr

oach

to s

uppl

y ch

ain

met

rics

is:

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- W

e ha

ve d

evel

oped

org

aniz

atio

n-w

ide

supp

ly c

hain

met

rics

focu

sing

on

perfo

rman

ce,

cost

and

cus

tom

er s

atis

fact

ion.

BB

- W

e pl

an to

impl

emen

t sup

ply

chai

n m

etric

s to

mea

sure

the

effe

ctiv

enes

s of

our

ove

rall

supp

ly c

hain

.

CC

- E

ach

orga

niza

tion

resp

onsi

ble

for a

lo

gist

ics

proc

ess

is c

harg

ed w

ith a

chie

ving

its

assi

gned

met

rics

targ

ets.

DD

- O

ur c

urre

nt lo

gist

ics

met

rics

satis

fy o

ur

man

ager

s' a

nd s

take

hold

ers'

nee

ds.

EE

- W

e ha

ve n

ot e

stab

lishe

d fo

rmal

met

rics

for

our s

uppl

y ch

ain

proc

esse

s.

Logi

stic

s M

atur

ity E

valu

ator

139

The

follo

win

g be

st d

escr

ibes

our

org

aniz

atio

n's

budg

etin

g ap

proa

ch to

impl

emen

ting

supp

ly c

hain

man

agem

ent:

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- O

ur c

utte

nt a

nd p

roje

cted

bud

get p

lan

fully

fu

nds

a co

mpr

ehen

sive

sup

ply

chai

n m

anag

emtn

impl

emen

tatio

n pr

ogra

m.

BB

- O

ur c

urre

nt a

nd p

roje

cted

bud

get p

lan

fund

s so

me

impo

rtant

asp

ects

of s

uppl

y ch

ain

man

agem

ent.

CC

- W

e ha

ve s

om p

ropo

sed

supp

ly c

hain

m

anag

emen

t ini

tativ

es, b

ut th

ey a

re n

ot fu

lly

fund

ed.

DD

- O

ur o

rgan

izat

ion

has

not r

ecog

nize

d a

need

to fu

nd s

uppl

y ch

ain

man

agem

ent

activ

ity.

EE

- S

uppl

y ch

ain

man

agem

ent d

oes

not a

pply

to

our

org

aniz

atio

n.

140

Our

org

aniz

atio

n's

appr

oach

to im

plem

entin

g or

impr

ovin

g ou

r su

pply

cha

in m

anag

emen

t pro

cess

is b

est d

escr

ibed

as:

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- U

sing

a c

ompr

ehen

sive

pro

cess

mod

elin

g an

d as

sess

men

t app

roac

h to

iden

tify

our

proc

esse

s, c

urre

nt/b

est p

ract

ices

and

rela

ted

met

rics.

BB

- P

ursu

ing

a se

ries

of p

roce

ss im

prov

emen

t in

itiat

ives

.

CC

- Ta

skin

g an

inte

grat

ion

cont

ract

or to

pr

opos

e ne

eded

pro

cess

impr

ovem

ents

.

DD

- U

pgra

ding

our

aut

omat

ed s

yste

ms

with

so

ftwar

e th

at in

corp

orat

es b

ette

r bus

ines

s pr

actic

es.

EE

- E

ach

orga

niza

tiona

l ele

men

t is

wor

king

to

impr

ove

its o

wn

busi

ness

pro

cess

es.

A-38

Logi

stic

s M

atur

ity E

valu

ator

141

Impl

emen

ting

supp

ly c

hain

man

agem

ent i

n ou

r org

aniz

atio

n is

a

mat

ter o

f:

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- D

eter

min

ing

basi

c pe

rform

ance

and

pr

oces

s re

quire

men

ts a

nd m

atch

ing

them

to

gove

rnm

ent o

r priv

ate

sect

or p

roce

dura

l and

te

cnol

ogic

al s

olut

ions

.

BB

- D

eter

min

ing

basi

c pe

rform

ance

and

pr

oces

s re

quire

men

ts a

nd e

ngin

eerin

g ou

r ow

n so

lutio

ns.

CC

- D

eter

min

ing

proc

ess

requ

irem

ents

onl

y.

DD

- A

cqui

ring

supp

ly c

hain

man

agem

ent

softw

are.

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n

142

Our

org

aniz

atio

n pr

imar

ily u

ses

the

follo

win

g ap

proa

ch to

im

plem

enta

tion

of te

chno

logy

sol

utio

ns in

are

as s

uch

as s

uppl

y ch

ain

man

agem

ent:

Pyr

amid

Are

a:S

uppl

y C

hain

Inte

grat

ion

AA

- Te

chno

logy

app

licat

ions

are

not

im

plem

ente

d un

til a

cre

dibl

e bu

sine

ss c

ase

is

docu

men

ted

and

appr

oved

.

BB

- W

e ha

ve in

pla

ce a

tech

nolo

gy s

trate

gy to

gu

ide

inve

stm

ents

bas

ed o

n su

pply

cha

in

proc

ess

impr

ovem

ent o

bjec

tives

.

CC

- G

ener

ally

, we

adop

t tec

hnol

ogie

s th

at

have

bee

n ac

cept

ed in

oth

er g

over

nmen

t or

gani

zatio

ns.

DD

- O

ur o

rgan

izat

ion

uses

con

tract

ors

to

advi

se u

s on

ass

essm

ent a

nd s

elec

tion

of

appl

icab

le te

chno

logi

es.

EE

- W

e try

to im

plem

ent n

ew te

chno

logi

es a

s th

ey b

ecom

e av

aila

ble.

Logi

stic

s M

atur

ity E

valu

ator

143

Whi

ch s

tate

men

t bes

t des

crib

es o

ur o

rgan

izat

ion'

s ap

proa

ch to

st

rate

gic

sour

cing

:

Pyr

amid

Are

a:S

trate

gic

Sour

cing

AA

- O

ur A

genc

y ha

s a

clea

r vis

ion

of it

s sp

endi

ng p

atte

rns

with

eac

h m

ajor

sup

plie

r an

d a

stra

tegy

for u

sing

the

info

rmat

ion

to

forg

e w

in/w

in b

usin

ess

rela

tions

hips

with

the

supp

liers

.

BB

- O

ur A

genc

y is

fam

iliar w

ith th

e pr

inci

ples

of

stra

tegi

c so

urci

ng a

nd h

as p

lans

to a

dopt

it.

CC

- O

ur A

genc

y is

sat

isfie

d w

ith th

e su

ppor

t cu

rren

tly p

rovi

ded

by s

uppl

iers

and

ther

efor

e do

es n

ot n

eed

to a

dopt

stra

tegi

c so

urci

ng.

DD

- O

ur A

genc

y w

ould

like

to a

dopt

stra

tegi

c so

urci

ng b

ut is

una

ble

to d

o so

bec

ause

of

proc

urem

ent r

egul

atio

ns, f

undi

ng, o

r pe

rson

nel c

onst

rain

ts.

EE

- O

ur A

genc

y do

es n

ot c

onsi

der s

trate

gic

sour

cing

to b

e ap

plic

able

to it

s op

erat

ions

.

144

The

follo

win

g be

st d

escr

ibes

the

stat

e of

stra

tegi

c so

urci

ng in

our

or

gani

zatio

n:

Pyr

amid

Are

a:S

trate

gic

Sour

cing

AA

- O

ur s

taff

is tr

aine

d, k

now

ledg

eabl

e, a

nd

enga

ged

in a

pply

ing

stra

tegi

c so

urci

ng.

BB

- O

ur s

taff

is tr

aine

d an

d kn

owle

dgea

ble

abou

t how

to a

pply

stra

tegi

c so

urci

ng b

ut o

nly

has

the

time

to w

ork

on s

trate

gic

sour

cing

on

a lim

ited

basi

s.

CC

- O

ur a

genc

y re

lies

on c

ontra

ctor

s w

ho a

re

excl

usiv

ely

man

agin

g ou

r stra

tegi

c so

urci

ng

effo

rts.

DD

- O

ur a

genc

y re

lies

on c

ontra

ctor

s w

ho

occa

sion

ally

app

ly s

trate

gic

sour

cing

ap

proa

ches

to m

ater

ial a

cqui

sitio

n.

EE

- O

ur a

genc

y is

usi

ng p

erso

nnel

who

do

not

have

or u

se a

ny tr

aini

ng o

n st

rate

gic

sour

cing

.

A-39

Logi

stic

s M

atur

ity E

valu

ator

145

Our

bud

get a

nd p

rogr

am p

lan

incl

udes

ade

quat

e pe

rson

nel a

nd

fund

ing

to e

ffect

ivel

y an

d ef

ficie

ntly

app

ly s

trate

gic

sour

cing

:

Pyr

amid

Are

a:S

trate

gic

Sour

cing

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n.

146

The

follo

win

g be

st d

escr

ibes

the

stat

us o

f our

org

aniz

atio

n's

use

of te

chno

logy

to im

plem

ent s

trate

gic

sour

cing

:

Pyr

amid

Are

a:S

trate

gic

Sour

cing

AA

- O

ur A

genc

y un

ders

tand

s an

d ap

plie

s cu

rren

t sta

te-o

f-the

-art

stra

tegi

c so

urci

ng

tech

nolo

gy a

nd te

chni

ques

to m

ost o

f our

op

erat

ions

.

BB

- O

ur A

genc

y un

ders

tand

s an

d ap

plie

s cu

rren

t sta

te-o

f-the

-art

stra

tegi

c so

urci

ng

tech

nolo

gy a

nd te

chni

ques

to a

few

of o

ur

oper

atio

ns.

CC

- A

sup

port

cont

ract

or u

nder

stan

ds a

nd

appl

ies

curr

ent s

tate

-of-t

he-a

rt st

rate

gic

sour

cing

tech

nolo

gy a

nd te

chni

ques

to m

ost o

f ou

r ope

ratio

ns.

DD

- Th

e te

chno

logy

sys

tem

sup

porti

ng o

ur

stra

tegi

c so

urci

ng e

fforts

is n

ot c

urre

nt s

tate

-of

-the-

art.

EE

- W

e do

not

use

any

sig

nific

ant t

echn

olog

y to

sup

port

stra

tegi

c so

urci

ng.

Logi

stic

s M

atur

ity E

valu

ator

147

The

follo

win

g be

st d

escr

ibes

the

stat

us o

f our

org

aniz

atio

n's

stra

tegi

c so

urci

ng p

roce

sses

:

Pyr

amid

Are

a:S

trate

gic

Sour

cing

AA

- O

ur A

genc

y's

and

our s

uppl

iers

' wor

k pr

oces

ses

are

stab

le a

nd w

ell u

nder

stoo

d by

ou

r stra

tegi

c so

urci

ng p

ract

ition

ers

BB

- O

ur A

genc

y ca

n ap

ply

stra

tegi

c so

urci

ng to

so

me

but n

ot a

ll ac

quis

ition

wor

k pr

oces

ses.

CC

- O

ur A

genc

y's

and/

or o

ur s

uppl

iers

' wor

k pr

oces

ses

are

unde

rgoi

ng c

hang

es th

at m

ake

it di

fficu

lt to

app

ly s

trate

gic

sour

cing

at t

his

time.

DD

- O

ur A

genc

y's

and/

or o

ur s

uppl

iers

' wor

k pr

oces

ses

are

not w

ell u

nder

stoo

d, m

akin

g it

diffi

cult

to d

ecid

e w

here

and

how

to a

pply

st

rate

gic

sour

cing

.

EE

- N

eith

er w

e no

r our

cus

tom

ers

know

w

heth

er s

trate

gic

sour

cing

is a

pplic

able

to o

ur

activ

ity.

148

The

follo

win

g be

st d

escr

ibes

stra

tegi

c so

urci

ng p

erfo

rman

ce in

ou

r org

aniz

atio

n:

Pyr

amid

Are

a:S

trate

gic

Sour

cing

AA

- W

e ha

ve s

trate

gic

sour

cing

per

form

ance

ou

tcom

e st

anda

rds

that

are

cur

rent

and

ge

nera

lly w

ell u

nder

stoo

d an

d rig

orou

sly

mon

itore

d.

BB

- W

e ha

ve s

trate

gic

sour

cing

per

form

ance

ou

tcom

e st

anda

rds

that

are

cur

rent

and

ge

nera

lly w

ell u

nder

stoo

d bu

t are

not

usu

ally

rig

orou

sly

mon

itore

d.

CC

- W

e ha

ve s

trate

gic

sour

cing

per

form

ance

ou

tcom

e st

anda

rds

that

are

not

cur

rent

or w

ell

unde

rsto

od.

DD

- W

e re

ly p

rimar

ily o

n co

ntra

ctor

s to

m

anag

e st

rate

gic

sour

cing

per

form

ance

ou

tcom

e st

anda

rds.

EE

- W

e do

not

hav

e st

rate

gic

sour

cing

pe

rform

ance

out

com

e st

anda

rds.

A-40

Logi

stic

s M

atur

ity E

valu

ator

149

I bel

ieve

Per

form

ance

Bas

ed L

ogis

tics

is:

Pyr

amid

Are

a:P

erfo

rman

ce B

ased

Log

istic

s

AA

- A

man

agem

ent s

trate

gy th

at u

ses

docu

men

ted

mea

sure

s, a

gree

men

ts a

nd

inte

grat

ion

man

ager

s to

ach

ieve

opt

imum

le

vels

of c

usto

mer

sat

isfa

ctio

n.

BB

- A

n ap

proa

ch to

impr

ove

life-

cycl

e su

ppor

t of

end

item

s an

d eq

uipm

ent.

CC

- A

way

to e

limin

ate

non-

valu

e ac

tivity

in th

e lo

gist

ics

proc

ess.

DD

- A

noth

er w

ay to

acc

ompl

ish

outs

ourc

ing.

EE

- I d

on't

real

ly k

now

.

150

Whi

ch s

tate

men

t bes

t des

crib

es o

ur o

rgan

izat

ion'

s ap

proa

ch to

pe

rform

ance

bas

ed lo

gist

ics:

Pyr

amid

Are

a:P

erfo

rman

ce B

ased

Log

istic

s

AA

- O

ur A

genc

y ha

s ad

opte

d a

visi

on a

nd

stra

tegy

for u

sing

PB

L ag

reem

ents

or

cont

ract

s co

verin

g bo

th s

ervi

ces

and

prod

ucts

pr

ovid

ed to

the

Age

ncy.

BB

- O

ur A

genc

y ha

s ad

opte

d a

visi

on a

nd

stra

tegy

for u

sing

PB

L ag

reem

ents

or

cont

ract

s co

verin

g pr

oduc

ts p

rovi

ded

to th

e A

genc

y.

CC

- O

ur A

genc

y ha

s ad

opte

d a

visi

on a

nd

stra

tegy

for u

sing

PB

L ag

reem

ents

or

cont

ract

s co

verin

g se

rvic

es p

rovi

ded

to th

e A

genc

y.

DD

- O

ur A

genc

y is

con

side

ring

usin

g P

BL

agre

emen

ts o

r con

tract

s co

verin

g ei

ther

or

both

ser

vice

s an

d pr

oduc

ts p

rovi

ded

to th

e A

genc

y.

EE

- O

ur A

genc

y do

es n

ot p

lan

to u

se P

BL

agre

emen

ts o

r con

tract

s in

the

near

futu

re.

Logi

stic

s M

atur

ity E

valu

ator

151

The

follo

win

g be

st d

escr

ibes

the

stat

e of

per

form

ance

bas

ed

logi

stic

s in

our

org

aniz

atio

n:

Pyr

amid

Are

a:P

erfo

rman

ce B

ased

Log

istic

s

AA

- O

ur s

taff

is a

full-

time

staf

f tra

ined

, kn

owle

dgea

ble,

and

eng

aged

in a

pply

ing

PB

L.

BB

- O

ur s

taff

is tr

aine

d an

d kn

owle

dgea

ble

abou

t how

to a

pply

PB

L bu

t onl

y w

orks

on

PB

L on

per

iodi

c ba

sis.

CC

- O

ur a

genc

y re

lies

exte

nsiv

ely

on

cont

ract

ors

to a

pply

PB

L.

DD

- O

ur a

genc

y re

lies

perio

dica

lly o

n co

ntra

ctor

s to

app

ly P

BL.

EE

- O

ur a

genc

y do

es n

ot e

ngag

e in

PB

L.

152

Our

bud

get a

nd p

rogr

am p

lan

incl

udes

ade

quat

e pe

rson

nel a

nd

fund

ing

to e

ffect

ivel

y an

d ef

ficie

ntly

app

ly P

BL:

Pyr

amid

Are

a:P

erfo

rman

ce B

ased

Log

istic

s

AA

- S

trong

ly A

gree

BB

- P

artia

lly A

gree

CC

- P

artia

lly D

isag

ree

DD

- S

trong

ly D

isag

ree

EE

- D

oes

Not

App

ly to

Our

Org

aniz

atio

n.

A-41

Logi

stic

s M

atur

ity E

valu

ator

153

The

follo

win

g be

st d

escr

ibes

the

stat

us o

f our

org

aniz

atio

n's

use

of P

BL-r

elat

ed te

chno

logy

:

Pyr

amid

Are

a:P

erfo

rman

ce B

ased

Log

istic

s

AA

- O

ur A

genc

y un

ders

tand

s an

d ap

plie

s cu

rren

t sta

te-o

f-the

-art

PB

L te

chno

logy

, so

ftwar

e an

d te

chni

ques

to m

ost o

f our

op

erat

ions

.

BB

- O

ur A

genc

y un

ders

tand

s an

d ap

plie

s cu

rren

t sta

te-o

f-the

-art

PB

L te

chno

logy

, so

ftwar

e a

nd te

chni

ques

to s

ome

of o

ur

oper

atio

ns.

CC

- A

sup

port

cont

ract

or u

nder

stan

ds a

nd

appl

ies

curr

ent s

tate

-of-t

he-a

rt P

BL

tech

nolo

gy, s

oftw

are

and

tech

niqu

es to

mos

t of

our

ope

ratio

ns.

DD

- Th

e te

chno

logy

sys

tem

sup

porti

ng o

ur

PB

L ef

forts

is n

ot c

urre

nt s

tate

-of-t

he-a

rt.

EE

- W

e ha

ve n

o pl

ans

to a

dopt

new

tech

nolo

gy

spec

ifica

lly fo

r sup

port

of P

BL

impl

emen

tatio

n

154

Whi

ch s

tate

men

t bes

t des

crib

es P

BL p

erfo

rman

ce in

you

r or

gani

zatio

n.

Pyr

amid

Are

a:P

erfo

rman

ce B

ased

Log

istic

s

AA

- W

e ha

ve d

ocum

ente

d P

BL

perfo

rman

ce

met

rics

that

focu

s on

cus

tom

er-o

rient

ed

perfo

rman

ce o

bjec

tives

and

on

redu

cing

lo

gist

ics

cost

s.

BB

- W

e ha

ve P

BL

perfo

rman

ce m

etric

s th

at

are

curr

ent a

nd g

ener

ally

wel

l und

erst

ood

and

rigor

ousl

y m

onito

red

CC

- W

e ha

ve P

BL

perfo

rman

ce m

etric

s th

at

are

not c

urre

nt o

r wel

l und

erst

ood.

DD

- W

e re

ly o

n co

ntra

ctor

s to

mee

t agr

eed-

to

PB

L pe

rform

ance

obj

ectiv

es..

EE

- W

e do

not

hav

e P

BL

perfo

rman

ce m

etric

s.

Logi

stic

s M

atur

ity E

valu

ator

155

In o

ur o

rgan

izat

ion,

the

desi

red

appr

oach

for a

cces

sing

and

ex

chan

ging

logi

stic

s in

form

atio

n is

bes

t des

crib

ed a

s:

Pyr

amid

Are

a:E

nter

pris

e In

tegr

atio

n

AA

- W

e pl

an to

use

com

mon

info

rmat

ion

repo

sito

ries

or d

ata

base

s to

pro

vide

requ

ired

info

rmat

ion

to a

ll au

thor

ized

use

rs.

BB

- O

ur in

tent

is to

ado

pt c

omm

erci

al

info

rmat

ion

data

exc

hang

e st

anda

rds

to

proc

ess

info

rmat

ion

trans

actio

ns a

mon

g di

ffere

nt a

utom

ated

sys

tem

s.

CC

- W

e w

ill co

ntin

ue to

use

gov

ernm

ent

stan

dard

tran

sact

ion

form

ats

such

as

FED

STR

IP to

exc

hang

e in

form

atio

n am

ong

diffe

rent

sys

tem

s an

d or

gani

zatio

ns.

DD

- O

ur n

orm

al m

etho

d to

exc

hang

e in

form

atio

n is

to p

repa

re p

rinte

d re

ports

and

di

ssem

inat

e th

ese

to u

sing

org

aniz

atio

ns.

EE

- W

e us

e m

essa

ges,

e-m

ail a

nd te

leph

ones

to

exc

hang

e lo

gist

ics

and

rela

ted

info

rmat

ion.

156

I wou

ld c

hara

cter

ize

our p

roce

ss fo

r pro

vidi

ng lo

gist

ics

info

rmat

ion

to m

anag

ers

and

empl

oyee

s as

:

Pyr

amid

Are

a:E

nter

pris

e In

tegr

atio

n

AA

- Th

e ab

ility

of A

genc

y pe

rson

nel t

o ob

tain

re

quire

d lo

gist

ics

info

rmat

ion

is s

atis

fact

ory.

BB

- In

form

atio

n av

aila

bilit

y in

our

org

aniz

atio

n is

gen

eral

ly ti

mel

y an

d ac

cura

te.

CC

- E

ach

orga

niza

tion

mai

ntai

ns th

e lo

gist

ics

info

rmat

ion

need

ed fo

r its

ow

n op

erat

ions

.

DD

- M

anag

ers

and

empl

oyee

s ca

n re

ques

t re

quire

d lo

gist

ics

and

rela

ted

info

rmat

ion

on

an a

s-ne

eded

bas

is.

EE

- Th

e ab

ility

of A

genc

y pe

rson

nel t

o ob

tain

re

quire

d lo

gist

ics

info

rmat

ion

is u

nsat

isfa

ctor

y.

A-42

Logi

stic

s M

atur

ity E

valu

ator

157

Our

org

aniz

atio

n's

curr

ent s

tatu

s to

war

d de

velo

ping

an

inte

grat

ed lo

gist

ics

ente

rpris

e ar

chite

ctur

e is

:

Pyr

amid

Are

a:E

nter

pris

e In

tegr

atio

n

AA

- W

e ha

ve d

ocum

ente

d a

fully

dev

elop

ed

logi

stic

s en

terp

rise

arch

itect

ure

and

use

it as

a

busi

ness

pro

cess

reen

gine

erin

g to

ol.

BB

- W

e ar

e cu

rren

tly d

evel

opin

g an

inte

grat

ed

logi

stic

s en

terp

rise

arch

itect

ure.

CC

- E

ach

orga

niza

tion

with

in o

ur A

genc

y is

re

spon

sibl

e fo

r dev

elop

ing

its o

wn

ente

rpris

e an

d te

chni

cal a

rchi

tect

ure

prod

ucts

.

DD

- W

e ha

ve n

ot a

ddre

ssed

the

issu

e of

a

logi

stic

s en

terp

rise

arch

itect

ure.

EE

- A

logi

stic

s en

terp

rise

arch

itect

ure

is n

ot

requ

ired

for o

ur o

rgan

izat

ion.

158

Our

app

roac

h to

tech

nica

l mod

erni

zatio

n an

d in

tegr

atio

n of

our

au

tom

ated

logi

stic

s pr

oces

ses

is b

est d

escr

ibed

as:

Pyr

amid

Are

a:E

nter

pris

e In

tegr

atio

n

AA

- W

e ar

e pu

rsui

ng d

evel

opm

ent o

f an

inte

grat

ed d

ata

envi

ronm

ent u

sing

com

mer

cial

en

terp

rise

reso

urce

s pl

anni

ng (E

RP

) sof

twar

e as

nee

ded.

BB

- W

e ar

e co

ncen

tratin

g on

impr

ovin

g ou

r lo

gist

ics

busi

ness

pro

cess

es, m

inim

izin

g de

velo

pmen

t of t

otal

ly n

ew a

utom

ated

sy

stem

s.

CC

- W

e ar

e de

velo

ping

our

ow

n m

oder

n au

tom

ated

sys

tem

s ca

pabi

litie

s or

upg

radi

ng

exis

ting

gove

rnm

ent o

wne

d so

ftwar

e an

d/or

ha

rdw

are.

DD

- O

ur a

utom

ated

dat

a sy

stem

s ar

e su

ffici

ently

mod

ern

to s

uppo

rt ou

r Age

ncy'

s ne

eds.

EE

- W

e h

ave

not a

ddre

ssed

pro

cess

or

syst

ems

mod

erni

zatio

n in

our

org

aniz

atio

n.

Logi

stic

s M

atur

ity E

valu

ator

159

Our

org

aniz

atio

n m

easu

res

prog

ress

tow

ard

impr

ovin

g lo

gist

ics

base

d on

:

Pyr

amid

Are

a:E

nter

pris

e In

tegr

atio

n

AA

- O

ur m

ost s

igni

fican

t log

istic

s bu

sine

ss

goal

s ba

sed

on c

usto

mer

app

rove

d m

etric

s en

com

pass

ing

over

all p

roce

ss p

erfo

rman

ce,

cost

, and

cus

tom

er s

atis

fact

ion

BB

- O

ur b

usin

ess

goal

s an

d cu

stom

er

satis

fact

ion

CC

- O

ur b

usin

ess

goal

s an

d pr

oces

s pe

rform

ance

DD

- O

ur o

vera

ll pr

oces

s pe

rform

ance

and

cos

t

EE

- C

ost

160

With

in o

ur o

rgan

izat

ion,

fund

ing

of a

fully

inte

grat

ed lo

gist

ics

proc

ess

and

info

rmat

ion

exch

ange

env

ironm

ent i

s be

st

desc

ribed

as:

Pyr

amid

Are

a:E

nter

pris

e In

tegr

atio

n

AA

- W

e ha

ve fu

nded

bus

ines

s pr

oces

ses

and

tech

nica

l ena

bler

s to

ach

ieve

this

env

ironm

ent

in th

e fo

rese

eabl

e fu

ture

.

BB

- S

ever

al k

ey p

roce

ss im

prov

emen

t ca

pabi

litie

s su

ch a

s fu

ll as

set v

isib

ility

and

in

tegr

ated

dat

a ba

ses

have

bee

n fu

nded

.

CC

- Te

chni

cal e

nabl

ers

such

as

bar c

odes

, ra

dio

frequ

ency

tags

or e

lect

roni

c da

ta

inte

rcha

nge

capa

bilit

ies

have

bee

n fu

nded

.

DD

- E

nter

pris

e in

tegr

atio

n re

quire

men

ts in

our

or

gani

zatio

n ha

ve b

een

reco

gniz

ed, b

ut h

ave

not y

et b

een

sign

ifica

ntly

fund

ed.

EE

- C

ross

-func

tiona

l or o

rgan

izat

iona

l in

tegr

atio

n of

logi

stic

s fu

nctio

ns h

as n

ot b

een

addr

esse

d in

our

org

aniz

atio

n.

A-43

Logi

stic

s M

atur

ity E

valu

ator

161

I wou

ld c

hara

cter

ize

logi

stic

s st

rate

gic

plan

ning

in o

ur

orga

niza

tion

as:

Pyr

amid

Are

a:S

trate

gic

Plan

ning

& E

xecu

tion

AA

- W

e ha

ve a

goo

d lo

gist

ics

stra

tegi

c pl

an

and

are

exec

utin

g it

reas

onab

ly c

onsi

sten

tly

and

on s

ched

ule.

BB

- W

e ha

ve a

goo

d lo

gist

ics

stra

tegi

c pl

an,

but w

e ha

ve n

ot b

een

able

to e

xecu

te it

ef

fect

ivel

y.

CC

- O

ur p

lan

has

not b

een

wel

l-pub

liciz

ed in

ou

r org

aniz

atio

n.

DD

- W

e ha

ve a

pla

n, b

ut a

ssig

nmen

ts h

ave

not

been

mad

e or

follo

wed

up

to a

ccom

plis

h ex

ecut

ion.

EE

- W

e ha

ve n

o pl

an.

162

I wou

ld c

hara

cter

ize

our A

genc

y m

anag

emen

t's s

uppo

rt of

our

lo

gist

ics

stra

tegi

c pl

an a

s:

Pyr

amid

Are

a:S

trate

gic

Plan

ning

& E

xecu

tion

AA

- M

anag

emen

t is

fully

com

mitt

ed to

our

st

rate

gic

plan

's c

onte

nt a

nd p

artic

ipat

es in

its

exec

utio

n.

BB

- M

anag

emen

t sup

ports

our

stra

tegi

c pl

an

obje

ctiv

es, b

ut th

ey a

re to

o in

volv

ed in

day

-to-

day

issu

es to

focu

s on

a lo

ng ra

nge

pers

pect

ive.

CC

- O

ur L

ogis

tics

Stra

tegi

c P

lan

has

not b

een

upda

ted

in re

cent

yea

rs.

DD

- M

anag

emen

t offi

cial

s do

not

app

ear t

o be

in

tere

sted

in s

trate

gic

plan

ning

.

EE

- S

trate

gic

plan

ning

just

won

't w

ork

in o

ur

orga

niza

tion.

Logi

stic

s M

atur

ity E

valu

ator

163

Res

pons

ibili

ty fo

r stra

tegi

c pl

anni

ng in

our

org

aniz

atio

n:

Pyr

amid

Are

a:S

trate

gic

Plan

ning

& E

xecu

tion

AA

- Is

led

by s

enio

r man

agem

ent w

ith fu

ll pa

rtici

patio

n of

key

man

ager

s an

d em

ploy

ees.

BB

- Is

acc

ompl

ishe

d by

an

Inte

grat

ed P

rodu

ct

Team

of k

ey e

mpl

oyee

s.

CC

- Is

the

resp

onsi

bilit

y of

our

stra

tegi

c pl

anni

ng o

rgan

izat

ion.

DD

- Is

eve

ryon

e's

resp

onsi

bilit

y.

EE

- N

ot s

ure

who

is re

spon

sibl

e.

164

Our

Log

istic

s S

trate

gic

Pla

n is

stru

ctur

ed in

acc

orda

nce

with

:

Pyr

amid

Are

a:S

trate

gic

Plan

ning

& E

xecu

tion

AA

- Th

e G

over

nmen

t Per

form

ance

and

Res

ults

A

ct (G

PR

A) m

odel

.

BB

- M

odel

s of

stra

tegi

c pl

ans

from

oth

er

gove

rnm

ent o

ffice

CC

- G

ener

ally

acc

epte

d co

mm

erci

al s

tand

ards

.

DD

- W

e de

velo

ped

our p

lan

tailo

red

to o

ur

need

s.

EE

- W

e do

n't h

ave

a P

lan.

A-44

Logi

stic

s M

atur

ity E

valu

ator

165

I bel

ieve

the

prob

abili

ty th

at o

ur L

ogis

tics

Stra

tegi

c P

lan

will

be

larg

ely

exec

uted

is:

Pyr

amid

Are

a:S

trate

gic

Plan

ning

& E

xecu

tion

AA

- 10

0%

BB

- M

ost m

ilest

ones

will

be

achi

eved

in th

e tim

e sp

ecifi

ed in

the

plan

.

CC

- M

ost m

ilest

ones

will

be

achi

eved

, but

it w

ill ta

ke lo

nger

than

pla

nned

.

DD

- A

few

mile

ston

es w

ill b

e ac

hiev

ed.

EE

- A

s w

ritte

n, o

ur p

lan

is n

ot e

xecu

tabl

e in

our

or

gani

zatio

n.

166

Adeq

uate

reso

urci

ng is

key

to a

suc

cess

fully

exe

cute

d st

rate

gic

plan

. O

ur p

lan

is:

Pyr

amid

Are

a:S

trate

gic

Plan

ning

& E

xecu

tion

AA

- Ful

ly re

sour

ced

in te

rms

of p

erso

nnel

and

fu

ndin

g.

BB

- S

ome

elem

ents

of o

ur p

lan

are

adeq

uate

ly

reso

urce

d an

d so

me

are

not.

CC

- A

t the

righ

t tim

e, re

sour

ces

will

be

mad

e av

aila

ble

for t

he m

eani

ngfu

l par

ts o

f our

pla

n.

DD

- O

ur o

rgan

izat

ion

does

not

gen

eral

ly li

nk

plan

s to

reso

urce

s.

EE

- Th

ere

are

no s

igni

fican

t res

ourc

es

avai

labl

e to

exe

cute

our

Log

istic

s S

trate

gic

Pla

n.

Logi

stic

s M

atur

ity E

valu

ator

167

The

rela

tions

hip

betw

een

our o

pera

tions

and

logi

stic

s:

Pyr

amid

Are

a:O

rgan

izat

iona

l Foc

us

AA

- Lo

gist

ics

is a

pee

r with

ope

ratio

ns

BB

- Lo

gist

ics

is s

ubor

dina

te to

ope

ratio

ns

CC

- Lo

gist

ics

is s

ubor

dina

te to

har

dwar

e pr

ogra

m o

ffice

s

DD

- Lo

gist

ics

is a

3rd

tier

sup

port

elem

ent

EE

- W

e do

n't h

ave

an o

ffice

ass

igne

d w

ith th

e m

issi

on o

f log

istic

s

168

The

Chi

ef o

f Log

istic

s fo

r our

Age

ncy

is

Pyr

amid

Are

a:O

rgan

izat

iona

l Foc

us

AA

- Fu

ll tim

e ex

ecut

ive

leve

l pos

ition

BB

- Fu

ll tim

e up

per m

anag

emen

t 13-

15

CC

- Fu

ll tim

e m

iddl

e m

anag

emen

t 9-1

2

DD

- P

art t

ime

man

ager

EE

- W

e do

n't h

ave

a ch

ief o

f log

istic

s

A-45

Logi

stic

s M

atur

ity E

valu

ator

169

How

are

logi

stic

s ac

tiviti

es o

rgan

ized

und

er th

e ch

ief o

f log

istic

s

Pyr

amid

Are

a:O

rgan

izat

iona

l Foc

us

AA

- A

ll lo

gist

ics

orga

niza

tions

repo

rt to

the

chie

f of l

ogis

tics

BB

- A

ll op

erat

iona

l log

istic

s su

ppor

t act

iviti

es

repo

rt to

the

chie

f of l

ogis

tics

CC

- O

nly

som

e of

the

oper

atio

nal s

uppo

rt lo

gist

ics

activ

ities

repo

rt to

the

chie

f of l

ogis

tics

DD

- O

nly

non-

oper

atio

nal s

uppo

rt lo

gist

ics

activ

ities

repo

rt to

the

chie

f of l

ogis

tics

EE

- D

oes

not a

pply

to o

ur o

rgan

izat

ion

170

Gen

eral

ly, t

he m

inim

um e

xper

ienc

e fo

r the

man

agem

ent s

taff

of

our l

ogis

tics

depa

rtmen

ts is

Pyr

amid

Are

a:O

rgan

izat

iona

l Foc

us

AA

- C

aree

r log

istic

s pr

ofes

sion

als

BB

- 10

or m

ore

year

s ex

perie

nce

in lo

gist

ics

CC

- 5-

10 y

ears

exp

erie

nce

in lo

gist

ics

DD

- 1-

5 y

ears

exp

erie

nce

in lo

gist

ics

EE

- N

o lo

gist

ics

expe

rienc

e

Logi

stic

s M

atur

ity E

valu

ator

171

The

appr

oxim

ate

annu

al s

taff

turn

over

in o

ur lo

gist

ics

activ

ities

is:

Pyr

amid

Are

a:O

rgan

izat

iona

l Foc

us

AA

- le

ss th

an 5

%

BB

- 5-

10 %

CC

-11-

15%

DD

- gr

eate

r tha

n 15

%

EE

- I d

on't

know

172

Doe

s yo

ur lo

gist

ics

staf

fing

mee

t the

nee

ds o

f you

r mis

sion

?

Pyr

amid

Are

a:O

rgan

izat

iona

l Foc

us

AA

- Y

es

BB

- N

o, w

e co

uld

use

10%

mor

e st

aff

CC

- N

o, w

e co

uld

use

25%

mor

e st

aff

DD

- N

o, w

e co

uld

use

50%

mor

e st

aff

EE

- I d

on't

know

A-46

Logi

stic

s M

atur

ity E

valu

ator

173

Our

hum

an re

sour

ce s

uppo

rt sy

stem

is in

tegr

ated

with

our

op

erat

iona

l log

istic

s sy

stem

s by

:

Pyr

amid

Are

a:O

rgan

izat

iona

l Foc

us

AA

- R

eal t

ime

dire

ct in

terfa

ce

BB

- P

erio

dic

upda

tes

thro

ugh

a di

rect

inte

rface

CC

- W

hen

requ

este

d, b

ut n

ot a

dire

ct in

terfa

ce

DD

- M

anua

lly

EE

- W

e do

n't u

se h

uman

reso

urce

dat

a in

our

op

erat

iona

l log

istic

s sy

stem

A-47

Appendix B Letter of Understanding

The attached letter of understanding (LOU) between LMI and an agency’s management formalizes the relationship and responsibilities of the participating parties.

B-1

DRAFT—[Click here and type report #)] —4/27/06B-2 IR509R1_B-app_BANNER.doc DRAFT—[Click here and type report #)] —4/27/06B-2 IR509R1_B-app_BANNER.doc

2 0 0 0 C O R P O R A T E R I D G E . M c L E A N . V A 2 2 1 0 2 - 7 8 0 5 . T 7 0 3 . 9 1 7 . 9 8 0 0 . F 7 0 3 . 9 1 7 . 7 5 9 7 . W W W . L M I . O R G

[Click here and type date]

[Click here and type recipient’s address]

Dear [Click here and type recipient’s name]:

The purpose of this letter of understanding is to describe how LMI will conduct the Logistics Maturity Evaluation (LME) of selected Department of Homeland Security (DHS) agencies. Below, we outline the evaluation approach and our expectations for the participants. Participation is voluntary and at no cost to DHS or the participating agencies. This effort is funded wholly by LMI’s independent research and development funds.

Nondisclosure

The information gathered from the Logistics Maturity Assessment Questionnaire is intended solely for the purpose of aiding in the design of the Logistics Maturity Evaluation. Survey responses will be kept confidential, will only be shared with LMI personnel with a need to know, and will not be shared with any non-LMI party. LMI will not disclose the source of the survey responses.

LME Approach

Background An objective maturity evaluation of organizational logistics can offer distinct advantages to managers trying to achieve higher service levels from their logistics processes. The appraisal can inform operational decision-making, focus management emphasis, and align organizational resources. LMI developed the LME to provide executives with an enterprise view of how their logistics operations compare to a set of generally accepted improvement practices. The LME is based on research of current maturity evaluation methods and logistics best practices. The LME is a structured, high-level diagnostic tool which is used to assess a Government organization’s logistics capability and identify target areas for performance improvement and reduced support costs. LME can particularly benefit government organizations with equipment-dependent, readiness-oriented, logistics-reliant operations.

The LME considers a mix of organizational components that serve as a logistics framework:

• Vision and strategies

• Organization and workforce

• Resources

• Technology enablers

• Logistics processes

• Performance

Individual logistics components can be assessed against a maturity scale to identify stages of development and improvement practices needed.

Methodology 1. LMI will present a briefing describing the LME assessment process.

2. LMI will administer a preliminary survey to gather key organizational characteristics, including:

key missions and activities

mission critical equipment

logistics organization structure(s)

agency budget

logistics activity funding

3. Based on evaluation of this profile, LMI will work with the agency to identify five logisticians, representing the organization’s five most significant logistics activities (e.g. mission critical logistics providers or high dollar programs), to attend a one-day session to complete the LME survey.

Scoring and Analysis LMI will compile and analyze survey responses to determine the status of improvement practices within the logistics components, quantify the organization‘s logistics maturity, and create an organizational Logistics Maturity Evaluation. Results will be compared with those from similar agencies to derive key conclusions and suggest next steps.

LMI Responsibilities

LMI will

• administer the LME to the agencies in this agreement at no cost.

• provide the evaluators, materials and information systems necessary to conduct this evaluation.

• provide a complete debriefing of the results of the evaluation to the participating agency.

2000 CORPORATE RIDGE . McLEAN . VA 22102-7805 . T 703.917.9800 . F 703.917.7597 . www.lmi.org

Agency’s Name

Agency will

• provide the pre-survey information to the LME evaluators.

• provide at least five management representatives from the most significant logistics activities to take part in the evaluation.

If you have any questions about the LME during the evaluation or want to discuss the results, please contact Jeff Colaianni at (703) 917 7548, jcolaian@lmi.org.

We appreciate the opportunity to help DHS and its agencies to optimize their logistics programs.

Sincerely,

Jeffery P. Bennett Operating Vice President

2000 CORPORATE RIDGE . McLEAN . VA 22102-7805 . T 703.917.9800 . F 703.917.7597 . www.lmi.org

Appendix C Initial LME Survey

Agency:

Interviewee:

Office:

Position:

Grade:

1. What is the annual budget in your agency?

2. Is there a specific budget for logistics? What is the annual budget for logistics?

3. Who at the executive level is in charge of logistics?

4. What general types and number of equipment do you support?

0–100 items

100–500 items

500–1,000 items

>1,000 items

Vehicles Boats Aircraft Major inspection equipment Sensors Radio equipment (C4) Maintenance significant weapons IT equipment Other

C-1

5. Do you have an agency-wide logistics office?

• Who does this office report to?

• What mission critical equipments does it support?

• How many staff does it have?

• What is the approximate annual budget?

• Are they following major logistics functions outsourced? (Y/N)

o Supply

o Maintenance

o Distribution and transportation

6. Is logistics performed in other offices?

Office Outsourced

(Y/N) Equipment supported

Number of staff

Approximate annual budget Supply (Y/N)

Maintenance (Y/N)

Distribution and transportation

(Y/N)

If you have any questions contact Jeff Colaianni at (703) 917-7548 or jcolaian@lmi.org.

C-2

REPORT DOCUMENTATION PAGE Form Approved

OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing this collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to Department of Defense, Washington Headquarters Services, Directorate for Information Operations and Reports (0704-0188), 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE ABOVE ADDRESS.

1. REPORT DATE (MM-YYYY) 04-2006

2. REPORT TYPE Final

3. DATES COVERED (From - To)

4. TITLE AND SUBTITLE Logistics Maturity Evaluator

5a. CONTRACT NUMBER

5b. GRANT NUMBER

5c. PROGRAM ELEMENT NUMBER

6. AUTHOR(S) Reay, James H; Author

5d. PROJECT NUMBER

Colaianni, A. Jeffrey ; Author Harleston, Evelyn F; Author

5e. TASK NUMBER

Maletic, Amy ; Author Marcus, John G; Author

5f. WORK UNIT NUMBER

7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES)

8. PERFORMING ORGANIZATION REPORT NUMBER

LMI 2000 Corporate Ridge McLean, VA 22102-7805

LMI-IR509R1

9. SPONSORING / MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR’S ACRONYM(S) LMI 2000 Corporate Ridge McLean, VA 22102 11. SPONSOR/MONITOR’S REPORT NUMBER(S) 12. DISTRIBUTION / AVAILABILITY STATEMENT A Approved for public release; distribution is unlimited.

13. SUPPLEMENTARY NOTES

14. ABSTRACT LMI wishes to help government logistics managers determine the current state of their logistics processes, prioritize resource application, and identify future direction. To do so, we embarked on a research effort to develop a logistics maturity evaluator (LME). By accomplishing this independent research and development task, we hope to develop LMI’s analytical capability to provide a structured high-level assessment of federal agencies’ logistics status, progress, and proficiency and help agency managers target areas for improving performance and reducing support costs. The LME borrows heavily from the capability maturity model concept being applied in many organizations to meet management’s need for an unbiased assessment tool. Our intention is to develop a repeatable system that gives logistics managers an objective comparison of the present status of their agencies’ business processes and technologies for delivering goods and services. By applying the LME to logistics organizations, government managers will be able to determine the current level of their logistics processes in terms of modernization and implementation of improvements and technologies; identify additional process improvements that may be applicable to their organizations; and, identify likely areas for focusing business process reengineering initiatives to maximize return on investment, with a reasonable expectation of successful implementation given the organization’s current level of development. 15. SUBJECT TERMS logistics maturity evaluator; LME; capability maturity model; CMM; organizational maturity level; integrated logistics

16. SECURITY CLASSIFICATION OF:

17. LIMITATION OF ABSTRACT

18. NUMBER OF PAGES

19a. NAME OF RESPONSIBLE PERSON Nancy E. Handy

a. REPORT UNCLASSIFIED

b. ABSTRACT UNCLASSIFIED

c. THIS PAGE UNCLASSIFIED

UnclassifiedUnlimited

90

19b. TELEPHONE NUMBER (include area code) 703-917-7249

Standard Form 298 (Rev. 8-98) Prescribed by ANSI Std. Z39.18