product lifecycle sustainment business process...
TRANSCRIPT
© SAP 2009, © SRA International 2009, All Rights Reserved 1
SAP PBL Solution
Product Lifecycle Sustainment Business Process Platform
Jon NewsomeSustainment/PBL Solution Principal
SAP Public Services
Bob DaniellPrincipal, Life Cycle ManagementSRA Enterprise Logistics Solutions
© SAP 2009, © SRA International 2009, All Rights Reserved 2
Agenda for Today’s Webcast
About the Series….About the CompaniesPBL as a Total Lifecycle Sustainment Strategy
The Age of Evangelism is over with….The Age of Delivery has come!
A Practitioner-Based TeamFor Additional Information and Follow-up
Courtesy of The University of California at Santa Barbara
The Convergence of Organizations Fused to a Common Purpose for Effective and Rigorous PBL Delivery Excellence
The Convergence of Organizations Fused to a Common Purpose for Effective and Rigorous PBL Delivery Excellence
© SAP 2009, © SRA International 2009, All Rights Reserved 3
SAP’s US Army Web Cast Series Schedule
Feb 19 Strategies for Optimizing Contract Performance & SustainmentMar 19 Enabling Relevant, Responsive, Effective and Integrated
Mission Capable Defense ForcesApr 16 RFID and Serialization Technology: Using ERP solutions to better
support the WarfighterMay 21 Improve Decision-Making with Visual Simplicity and Self Service
Information AccessJun 18 Aligning Strategy to Comply with Army Performance InitiativesJul 16 Bringing Best Practices in Procurement to the ArmyAug 20 Managing Hazardous Materials and Protecting the WarfighterSep 17 A Full View of the Enterprise: Integrating Financial and Operational
PlanningOct 15 360 Degree Portfolio and Program Management for ArmyNov 19 Empowering the Army User with TechnologyDec 17 Risk Management: Protecting and Advancing Army's Mission
The Link to Sign up for any/all of the Webcast Series is: http://www.carahsoft.com/events/sap/armywebcastseries/?ref=sap
Series POC: Dan Dorchinsky, Global Account Director, [email protected]
© SAP 2009, © SRA International 2009, All Rights Reserved 4
PBL Convergence Partners At A Glance
The SRA DifferenceThe SRA Difference
• >$1B Tier 2 Integrator with reputation as “Honest Broker”
• “Smart” ERP Implementer• Measured view across all lifecycle stages per
DoD5000.2• Strong Cause/Effect impact of individual supply chain
elements• Methodologies for time compression and lower TCO• Masters at applying Supply Chain Council’s (SCC)
Suite of Business Process Models• Convergence of Performance Based Logistics, the
SCOR Implementation Roadmap, and Lean 6 Sigma concepts, techniques and tools supported by Professional Project Management
The SAP DifferenceThe SAP Difference
SAP AG 2007 revenues: $15.86 billionSAP AG 2007 revenues: $15.86 billionMore than 47,800 companies run SAP software
Providing more than 25 industry solutions, 1,000+ Applications
51,274 SAP employees (as of March, 2008)12 million users in 120+ countries12 million users in 120+ countriesMore than 2,000 partner solutions certified for SAP NetWeaver
15 Industry Value NetworksServing DoD for over 30 yearsUnique Industry Solutions for DoD, A&D, PBL, others
SRA moves your process
left to right
SAP lifts your enterprise to greater insights
Ensuring that the PBL Dynamics for Achieving Targeted Results are in place.
© SAP 2009, © SRA International 2009, All Rights Reserved 5
Recognized/Standard “Levels” Of PBL
Weapons System Performance
PBL Level III
Mission Performance PBL Level IV
Sub-System Performance PBL Level IIDistribution
Performance PBL Level I
Performance Objective
Delivery Speed Availability Operational Availability Mission Reliability
Functional Scope (Responsibility of PBL Provider)
PlanningLogistics
PlanningLogistics ValueEngineering
PlanningLogisticsValue EngineeringConfig. ManagementMaintenance
PlanningLogisticsValue EngineeringConfig. ManagementMaintenanceOperations
Weapons System Scope
PartsComponents
ComponentsAssemblies
SystemsPlatforms
Platform Performance
Examples PVP Contracts F/A-18 JSF None Currently Exist
ComponentPlatform
Mission
Support Moves Closer to the Warfighter/CustomerSignals from Customers, Suppliers & Products Becomes More Important
Pay for Level of Performance Rather Than Repairs
© SAP 2009, © SRA International 2009, All Rights Reserved 6
PBL requirements across the ecosystem… where to begin?
Aftermarket & Service Suboptimal Inventory
Levels, Unbalanced Plan
Business ManagementRisk / Reward Analysis
Cash Flow ConsiderationsAccurate Earned Value Projection ?
Proposal Management
Inefficient Proposal Development
ManufacturingLack of Supply Chain
Synchronization
Incomplete Global Program Insights
Program Performance?
Engineering Impact of Changes to
Cost & Schedule Disconnected from
Supply Chain
SALARIES
Board, Audit CommitteeCompliance with complex Government Regulations
?Customer
Supply ChainDifficult Adoption of Program Changes
Procurement Lack of Supply Chain
Synchronization
CustomerTier N Supply Chain Network
© SAP 2009, © SRA International 2009, All Rights Reserved 7
Decision making support based on real time visibility on
program specific KPI’s
Begin with Visibility and Decision Support Tools for the Program Manager
Program Manager
Risk/Reward Analyses capabilities to develop
pricing and platform support models
Apply Earned Value Management standards to plan
and track program/contract performance.
Plan program revenue and cost streams (cash flow) in order to build pricing and execution concept that meets PWS requirements
Adaptive planning and cross functional integration
to enable quick response to unplanned costs and/or
operational changes
Manage complex PBL contract types (FFP, cost-plus, T&M) and award and incentive fees
Early warning systems to identify planned vs. actual cost variances
Simulation tools to optimize supply chain and equipment performance
Tier N Supply Chain Network
OEM
Total asset visibility across all customer locations with inventory collaboration capabilities
Customer
© SAP 2009, © SRA International 2009, All Rights Reserved 8
Emerging Layers of PBL
FORCE Generation Drives Demand-Side…. = Customer “Takt” Rate
….Requiring An Effective Supply-Side Response…. = PBL “Dynamics”
Details of the multi-echelon supply and value chain
Informed lead times required by each supplier
Critical paths and specific bottlenecks
Actual days required to support a supply chain, versus unsupported estimates
ARFORGEN
Planning drumbeat: How often completed units NEED to come out the end of the pipe –as established by customer demand
Takt TimeLANDFORGEN 1
SEAFORGEN1AIR
FORGEN
1
“For ARFORGEN weManufacture Brigade Combat Teams”….therefore what is:
Make to Stock?Make to Order?Engineer to Order?
PBL Layer I
PBL Layer II
PBL Layer III
COMPLIANCE
CULTURE
PROCESS
1 Notional
© SAP 2009, © SRA International 2009, All Rights Reserved 9
PBL Basic Construct
Customer
MACOMs
FMS
OtherAgencies
OtherServices
NATO
ProgramManager
(PM)PBA
Product SupportIntegrator
(PSI)
ComSupplier
DLA
OtherServices
TRADOC
AMC
PBA
SYSTEMSSUBSYSTEMSCOMPONENTS
Product SupportProviders
(PSP)
SYSTEMSSUBSYSTEMSCOMPONENTS
OrganicPSP2
ComPSP1
PSP4
PSP3
Business Case Analysis (Benchmarking)
Monitors Performance
PM Oversight & Accountability
(MONITORS) PERFORMANCE OUTCOMES
FLEXIBILITY Data
Warehouse
MOA
MOU
PBA
PSI (EXECUTES)
(REDIRECTS)PPP
….Tools are needed to support process. PSI is key.
© SAP 2009, © SRA International 2009, All Rights Reserved 10
How Do We Support a PBL-Enabled CONOPS?...
1INCREASE
Mission Reliability
2REDUCE
Logistics Response Time
3IMPROVE
Operational Availability
4REDUCE
Cost Per Unit Usage
5INTEGRATE / REDUCE
Logistics Footprint
LIFE
CY
CLE
GO
ALS
LIFE
CY
CLE
OB
JEC
TIV
ESR
ES
PO
NS
IBIL
ITY
AP
PR
OA
CH
PR
OC
ES
SC
OM
PE
TEN
CIE
SE
NA
BLE
RS
6ENABLE
Effective LCM strategies and mechanismsthat promote, foster and direct LCM
improvements
7OPTIMIZE AND CONTROLEnd to End LCM performance,
Proactively responding to non-immediateand immediate issues
8ESTABLISH CLEAR LINKAGES
Between process performance and LCMObjectives, for day to day monitoring,
execution and redirection
9ADVOCATELCM interestswith players
10SUPPORT
LCM improvement
11CONDUCT
LCM constraintanalysis
12INFLUENCE
Buy/repair prioritiesand execution
13STANDARDIZEand consolidatereqs. and reports
14PREPAREand present
formal reviews
15MANAGE
LCM operationsto a strategicbusiness plan
27Executive
sponsorshipfor LCM role
28Organizational
Construct
29LCM
standardizationSCOR, DCOR,
CCOR
30Value propositions
For WeaponsSystems
Data/input/output
31LCM
Processtransparency
32Clear and Consistent
communications
16DEFINE
or understandLCM
process
17MEASURE
LCMprocess
performance
18ANALYZE
theperformance
data
19REALIZE
LCMprocess
improvements
20CONTROL
LCMProcess
performance
21EQUIPStrategicBusinessplanning
22ANALYZE
Businessprocess
performance
23ADVOCATE
Businesscase
development
24INTEGRATECollaboration& relationship management
25MONITORContinuous
process improvement
26INFLUENCE
Teambased
thinking
© 2009 SRA International. All rights reserved
1INCREASE
Mission Reliability
2REDUCE
Logistics Response Time
3IMPROVE
Operational Availability
4REDUCE
Cost Per Unit Usage
5INTEGRATE / REDUCE
Logistics Footprint
LIFE
CY
CLE
GO
ALS
LIFE
CY
CLE
OB
JEC
TIV
ESR
ES
PO
NS
IBIL
ITY
AP
PR
OA
CH
PR
OC
ES
SC
OM
PE
TEN
CIE
SE
NA
BLE
RS
6ENABLE
Effective LCM strategies and mechanismsthat promote, foster and direct LCM
improvements
7OPTIMIZE AND CONTROLEnd to End LCM performance,
Proactively responding to non-immediateand immediate issues
8ESTABLISH CLEAR LINKAGES
Between process performance and LCMObjectives, for day to day monitoring,
execution and redirection
9ADVOCATELCM interestswith players
10SUPPORT
LCM improvement
11CONDUCT
LCM constraintanalysis
12INFLUENCE
Buy/repair prioritiesand execution
13STANDARDIZEand consolidatereqs. and reports
14PREPAREand present
formal reviews
15MANAGE
LCM operationsto a strategicbusiness plan
27Executive
sponsorshipfor LCM role
28Organizational
Construct
29LCM
standardizationSCOR, DCOR,
CCOR
30Value propositions
For WeaponsSystems
Data/input/output
31LCM
Processtransparency
32Clear and Consistent
communications
16DEFINE
or understandLCM
process
17MEASURE
LCMprocess
performance
18ANALYZE
theperformance
data
19REALIZE
LCMprocess
improvements
20CONTROL
LCMProcess
performance
21EQUIPStrategicBusinessplanning
22ANALYZE
Businessprocess
performance
23ADVOCATE
Businesscase
development
24INTEGRATECollaboration& relationship management
25MONITORContinuous
process improvement
26INFLUENCE
Teambased
thinking
© 2009 SRA International. All rights reserved
© SAP 2009, © SRA International 2009, All Rights Reserved 11
….THROUGH EVOLVING SAP INNOVATION SAP Business Process Platform And Industry Solutions
Lots of Unique Pieces and Parts that can be Hooked Together to Produce Other Things
May or May-Not have all the Right Pieces
No Instructions on How to Put it All Together
Unique Pieces and Parts Made to Work Together
Pieces Have Been Designed to Provide the Best End-product
Instructions on How to Bring the Pieces Together
SAP Industry Solutions
SAP for A&D
SAP PBL, iMRO, eGRC, Perfect Plant
Others….
Known Outcomes
© SAP 2009, © SRA International 2009, All Rights Reserved 12
High Level Architecture – For Full SAP PBL/PSI Functionality
SAP PBLiMRO SAP SCM SAP Other
SAP NetWeaverData Integration (SAP and/or BOBJ)
SAP SSMBOBJ
SAP LegacyLegacy ApplicationsLegacy Data
SA
P B
W
Legacy via integration, data transfer, etc.
Strategic Alignment, scorecards, dashboards, BI, Reporting
BW, Historical
Data
Functionality
Development, Integration
A Holistic Natively Integrated Product Lifecycle Sustainment Solution Oriented Around Business Processes, Not Applications
Designed to Work Together ~ Holistic, Flexible, Scalable
© SAP 2009, © SRA International 2009, All Rights Reserved 13
The SAP PBL Value Chain Elements
Manage Contract – Manage and measure performance to meet contractual obligations…KPIs drive the right behavior to optimize contract performance and profitability
Manage Product – Emphasis on product lifecycle support… design for reliability and maintainability over feature/function
Manage Supply Chain – Various topics… demand intelligence, service network design, service and inventory optimization and exception based decision support
Manage Service – Minimize downtime by ensuring the right equipment, information and field support is available to perform services
Validated with customers, partners, analysts and academia
© SAP 2009, © SRA International 2009, All Rights Reserved 14
Unique PBL Requirements – What We Have Built Into The SAP PBL Solution
Natively Integrated Business Process Platform – Individual functional capabilities (MRO, Procurement, Analytics, etc.) are insufficient. Information from all functions, business processes, customers, suppliers and on board sensors must be brought together
Enterprise Analytics, Simulation, Decision Support – Analytics must consider demands, operational requirements, reliability, MRO and supply chain capabilities to make the right decisions with a focus on Product Lifecycle Management
Program & Contract Management – Program/project management requires sophisticated risk/reward analysis capabilities to develop platform support plans and pricing models. Contracts must be tightly aligned with execution activities/KPIs
Product Lifecycle Management – Increased emphasis on reliability and the requirement to conduct extensive risk/reward analysis for engineering change activities. Tight integration to MRO activities
Supply Chain Management – There is a greater emphasis on aftermarket service parts planning/execution as wells as complex multi-indenture/echelon planning requirements
MRO – Focused on streamlined maintenance activities to reduce costs per operational hour. Emphasis on prognostics and health management to reduce scheduled and unscheduled equipment downtime
Strategic Alignment and Cascaded Metrics – **MOST IMPORTANT** - Fundamental change in how vendors get paid and remain profitable. Effectiveness KPIs get them paid (ex, system availability). Efficiency KPIs help improve their margin (ex, cost per flight hour)
Extendibility to Customers, Suppliers and Products – A move from ‘Diagnostics to Prognostics’ where clear, real time signals coming from Customers, Suppliers and Products are essential
© SAP 2009, © SRA International 2009, All Rights Reserved 15
The SAP PBL Platform
Program &Contract
Management
Contract Execution and Billing
Optimize Maintenance
Activities
Optimize Engineering
Change
Optimize Surge
Requirements
Best Practices & Implementation Accelerators for key PBL Scenarios
SAP Business Process PlatformSAP Applications
ERP
ISV Solutions
PPCby
SIOby
RCMOby
Strategy Mgmt
SRM CRM SCM PLM
VISION: A PLATFORM ENABLING CUSTOMERS TO BECOME MARKET LEADING PBL PROVIDERS
Risk Mgmt
Engineering Partner
Provide total Real-Time Asset & Usage visibility
across all locations
Orchestrate collaborative Engineering & Design
process
Sub-Assembly OEM
Manage complete sub- assembly design,
production and delivery (e.g. wings)
Component Manufacturer
Deliver on integrated production schedule based
on global MRP
Regulatory Authorities
Ensure Program Conformance
DoD
© SAP 2009, © SRA International 2009, All Rights Reserved 16
SAP’s Performance Based Logistics Solution
OEM, Suppliers & Partners
Customers & Channels
Manage Contract Manage Product Manage Supply Chain Manage Service
Enterprise Management & Support
Program & Contract ManagementProgram Management
Project Planning and Execution Contract & Order Management
Marketing and Business AcquisitionMarketing Management
Business AcquisitionRisk Management
Federal ContractingContract Management & Administration
Supplier CollaborationStrategic Sourcing
Supply Network Collaboration
Supply ManagementService Parts Planning and Procurement
Service Parts Execution and Analytics Mobile Materials Management
Organizational ModelingOrganizational Generation
Organizational Employment Organizational Support
Maintenance OperationsLine Maintenance
Component Maintenance Depot Level Maintenance
Mobile Maintenance Maintenance Support
Product Lifecycle ManagementConfiguration Management
Product Development, Production and Deployment Total Lifecycle Management
ComplianceRFID & UID
Global Trade & ITAR
© SAP 2009, © SRA International 2009, All Rights Reserved 17
SSM Organizes Information And Drives Behavior Throughout The Extended Supply Chain
© SAP 2009, © SRA International 2009, All Rights Reserved 18
Information From Back-end Systems Is Delivered To Interactive User-defined Balanced Scorecards
© SAP 2009, © SRA International 2009, All Rights Reserved 19
Track Execution In SAP Strategy Management
© SAP 2009, © SRA International 2009, All Rights Reserved 20
The Ability To Drill Down Into Back-end Execution System
© SAP 2009, © SRA International 2009, All Rights Reserved 21
Measure Results And Report Using Business Objects
© SAP 2009, © SRA International 2009, All Rights Reserved 22
Plan Cost Allocation And Execution
© SAP 2009, © SRA International 2009, All Rights Reserved 23
Repair Centered Maintenance - Ability To Drill Down Into Sub-components That Most Effects MTBF
© SAP 2009, © SRA International 2009, All Rights Reserved 24
Ability To Compare Performance Of Various Configurations, Versions, Blocks, Etc…….
© SAP 2009, © SRA International 2009, All Rights Reserved 25
Ability To Consider All Aspects of Product Lifecycle Support And Consider Alternatives
© SAP 2009, © SRA International 2009, All Rights Reserved 26
Identify The Individual System IDs, Bumper Numbers etc. For Mission Tasking
© SAP 2009, © SRA International 2009, All Rights Reserved 27
Conduct “What-if” Analysis On Support Alternatives
© SAP 2009, © SRA International 2009, All Rights Reserved 28
Drill Down To Component Costs For The Planned Mission
© SAP 2009, © SRA International 2009, All Rights Reserved 29
SRA As A PBL Implementer– “Are You Mission Ready?”
SUPPLY CHAIN MANAGEMENT
•SCOR®•DCOR™•CCOR™•LEAN SIX SIGMA
PBL STRATEGYPSI CONFIGURATIONPUBLIC/PRIVATE
PARTNERSHIPSBCA (I, II)
INDUSTRIAL BASE OPERATIONS
ASSESSMENTS•LEAN THINKING•SCM BEST PRACTICES•SUSTAINMENT
MATURITY•RISK
MANAGEMENT•INDUSTRIAL
CAPABILITIES (ICAs)
BENCHMARKSSPECIALIZED STUDIES
CUSTOMIZED TRAINING
PROGRAM & PROJECT MANAGEMENT
•PMBOK
PRACTITIONER-BASED SERVICESTotal Lifecycle System ManagementSupply Chain OptimizationEnterprise Resource PlanningLogistics Common Operating PictureLogistics Technical Services
EquipmentEquipment
SystemsSystems
PersonnelPersonnel
FundingFunding
© SAP 2009, © SRA International 2009, All Rights Reserved 30
SAP’s US Army Web Cast Series Schedule
Mar 19 Enabling Relevant, Responsive, Effective and Integrated Mission Capable Defense Forces
Apr 16 RFID and Serialization Technology: Using ERP solutions to better support the Warfighter
May 21 Improve Decision-Making with Visual Simplicity and Self Service Information Access
Jun 18 Aligning Strategy to Comply with Army Performance Initiatives
Jul 16 Bringing Best Practices in Procurement to the Army
Aug 20 Managing Hazardous Materials and Protecting the Warfighter
Sep 17 A Full View of the Enterprise: Integrating Financial and Operational Planning
Oct 15 360 Degree Portfolio and Program Management for Army
Nov 19 Empowering the Army User with Technology
Dec 17 Risk Management: Protecting and Advancing Army's Mission
The Link to Sign up for any/all of the Webcast Series is: http://www.carahsoft.com/events/sap/armywebcastseries/?ref=sap
© SAP 2009, © SRA International 2009, All Rights Reserved 31
Jon NewsomeSustainment/PBL Solution Principal
Phone: 703-342-7030Email: [email protected]
Bob DaniellPrincipal Lifecycle Management
Phone: 732-861-1487Email: [email protected]
SAP For Performance Based Logistics
ContactInformation