Product Lifecycle Sustainment Business Process Platform

Transcription

1 SAP PBL Solution Product Lifecycle Sustainment Business Process Platform Jon Newsome Sustainment/PBL Solution Principal SAP Public Services Bob Daniell Principal, Life Cycle Management SRA Enterprise Logistics Solutions SAP 2009, SRA International 2009, All Rights Reserved 1

2 Agenda for Today s Webcast About the Series. About the Companies PBL as a Total Lifecycle Sustainment Strategy The Age of Evangelism is over with.the Age of Delivery has come! A Practitioner-Based Team For Additional Information and Follow-up The Convergence of Organizations Fused to a Common Purpose for Effective and Rigorous PBL Delivery Excellence Courtesy of The University of California at Santa Barbara SAP 2009, SRA International 2009, All Rights Reserved 2

3 SAP s US Army Web Cast Series Schedule Feb 19 Mar 19 Apr 16 May 21 Jun 18 Jul 16 Aug 20 Sep 17 Oct 15 Nov 19 Dec 17 Strategies for Optimizing Contract Performance & Sustainment Enabling Relevant, Responsive, Effective and Integrated Mission Capable Defense Forces RFID and Serialization Technology: Using ERP solutions to better support the Warfighter Improve Decision-Making with Visual Simplicity and Self Service Information Access Aligning Strategy to Comply with Army Performance Initiatives Bringing Best Practices in Procurement to the Army Managing Hazardous Materials and Protecting the Warfighter A Full View of the Enterprise: Integrating Financial and Operational Planning 360 Degree Portfolio and Program Management for Army Empowering the Army User with Technology Risk Management: Protecting and Advancing Army's Mission The Link to Sign up for any/all of the Webcast Series is: Series POC: Dan Dorchinsky, Global Account Director, dan.dorchinsky@sap.com SAP 2009, SRA International 2009, All Rights Reserved 3

4 PBL Convergence Partners At A Glance The SAP Difference SAP AG 2007 revenues: $15.86 billion More 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+ countries More than 2,000 partner solutions certified for SAP NetWeaver 15 Industry Value Networks Serving DoD for over 30 years Unique Industry Solutions for DoD, A&D, PBL, others The SRA Difference >$1B Tier 2 Integrator with reputation as Honest Broker Smart ERP Implementer Measured view across all lifecycle stages per DoD 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 SAP lifts your enterprise to greater insights SRA moves your process left to right Ensuring that the PBL Dynamics for Achieving Targeted Results are in place. SAP 2009, SRA International 2009, All Rights Reserved 4

5 Recognized/Standard Levels Of PBL Pay for Level of Performance Rather Than Repairs Distribution Performance PBL Level I Sub-System Performance PBL Level II Weapons System Performance PBL Level III Mission Performance PBL Level IV Component Platform Mission Performance Objective Delivery Speed Availability Operational Availability Mission Reliability Functional Scope (Responsibility of PBL Provider) Planning Logistics Planning Logistics Value Engineering Planning Logistics Value Engineering Config. Management Maintenance Planning Logistics Value Engineering Config. Management Maintenance Operations Weapons System Scope Parts Components Components Assemblies Systems Platforms Platform Performance Examples PVP Contracts F/A-18 JSF None Currently Exist Support Moves Closer to the Warfighter/Customer Signals from Customers, Suppliers & Products Becomes More Important SAP 2009, SRA International 2009, All Rights Reserved 5

6 PBL requirements across the ecosystem where to begin? Board, Audit Committee Compliance with complex Government Regulations Business Management Risk / Reward Analysis Cash Flow Considerations Accurate Earned Value Projection Engineering Impact of Changes to Cost & Schedule Disconnected from Supply Chain Manufacturing Lack of Supply Chain Synchronization SALARIES?? Incomplete Global Program Insights Program Performance? Procurement Lack of Supply Chain Synchronization Aftermarket & Service Suboptimal Inventory Levels, Unbalanced Plan Proposal Management Inefficient Proposal Development Customer Supply Chain Difficult Adoption of Program Changes Tier N Supply Chain Network Customer SAP 2009, SRA International 2009, All Rights Reserved 6

7 Begin with Visibility and Decision Support Tools for the Program Manager Manage complex PBL contract types (FFP, cost-plus, T&M) and award and incentive fees Plan program revenue and cost streams (cash flow) in order to build pricing and execution concept that meets PWS requirements OEM Decision making support based on real time visibility on program specific KPI s Risk/Reward Analyses capabilities to develop pricing and platform support models Early warning systems to identify planned vs. actual cost variances Program Manager Apply Earned Value Management standards to plan and track program/contract performance. Customer Adaptive planning and cross functional integration to enable quick response to unplanned costs and/or operational changes Tier N Supply Chain Network Total asset visibility across all customer locations with inventory collaboration capabilities Simulation tools to optimize supply chain and equipment performance SAP 2009, SRA International 2009, All Rights Reserved 7

8 Emerging Layers of PBL FORCE Generation Drives Demand-Side. = Customer Takt Rate.Requiring An Effective Supply-Side Response. = PBL Dynamics ARFORGEN PBL Layer I COMPLIANCE LANDFORGEN 1 PBL Layer II CULTURE 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 SEAFORGEN 1 AIRFORGEN 1 PBL Layer III PROCESS For ARFORGEN we Manufacture Brigade Combat Teams.therefore what is: Make to Stock? Make to Order? Engineer to Order? 1 Notional Takt Time Planning drumbeat: How often completed units NEED to come out the end of the pipe as established by customer demand SAP 2009, SRA International 2009, All Rights Reserved 8

9 PBL Basic Construct PSI (EXECUTES) PM Oversight & Accountability (MONITORS) PERFORMANCE OUTCOMES Product Support Providers (PSP) Com PSP1 Organic PSP2 PSP3 PSP4 MOU MOA SYSTEMS SUBSYSTEMS COMPONENTS PBA PPP (REDIRECTS) F L E X I B I L I T Y Product Support Integrator (PSI) DLA Com Supplier AMC TRADOC Other Services SYSTEMS SUBSYSTEMS COMPONENTS Data Warehouse PBA Monitors Performance Program Manager (PM) Business Case Analysis (Benchmarking) PBA MACOMs FMS NATO Other Services Other Agencies Customer.Tools are needed to support process. PSI is key. SAP 2009, SRA International 2009, All Rights Reserved 9

10 How Do We Support a PBL-Enabled CONOPS?... LIFECYCLE GOALS 1 INCREASE Mission Reliability 2 REDUCE Logistics Response Time 3 IMPROVE Operational Availability 4 REDUCE Cost Per Unit Usage 5 INTEGRATE / REDUCE Logistics Footprint LIFE CYCLE OBJECTIVES 6 ENABLE Effective LCM strategies and mechanisms that promote, foster and direct LCM improvements 7 OPTIMIZE AND CONTROL End to End LCM performance, Proactively responding to non-immediate and immediate issues 8 ESTABLISH CLEAR LINKAGES Between process performance and LCM Objectives, for day to day monitoring, execution and redirection RESPONSIBILITY 9 ADVOCATE LCM interests with players 10 SUPPORT LCM improvement 11 CONDUCT LCM constraint analysis 12 INFLUENCE Buy/repair priorities and execution 13 STANDARDIZE and consolidate reqs. and reports 14 PREPARE and present formal reviews APPROACH 15 MANAGE LCM operations to a strategic business plan 16 DEFINE or understand LCM process 17 MEASURE LCM process performance 18 ANALYZE the performance data 19 REALIZE LCM process improvements 20 CONTROL LCM Process performance PROCESS COMPETENCIES 21 EQUIP Strategic Business planning 22 ANALYZE Business process performance 23 ADVOCATE Business case development 24 INTEGRATE Collaboration & relationship management 25 MONITOR Continuous process improvement 26 INFLUENCE Team based thinking ENABLERS 27 Executive sponsorship for LCM role 28 Organizational Construct 29 LCM standardization SCOR, DCOR, CCOR 30 Value propositions For Weapons Systems Data/input/output 31 LCM Process transparency 32 Clear and Consistent communications 2009 SRA International. All rights reserved SAP 2009, SRA International 2009, All Rights Reserved 10

11 .THROUGH EVOLVING SAP INNOVATION SAP Business Process Platform And Industry Solutions SAP 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 SAP for A&D SAP PBL, imro, egrc, Perfect Plant Others. Known Outcomes 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 2009, SRA International 2009, All Rights Reserved 11

12 High Level Architecture For Full SAP PBL/PSI Functionality A Holistic Natively Integrated Product Lifecycle Sustainment Solution Oriented Around Business Processes, Not Applications BOBJ SAP SSM Strategic Alignment, scorecards, dashboards, BI, Reporting BW, Historical Data SAP BW imro SAP PBL SAP SCM SAP Other SAP NetWeaver Data Integration (SAP and/or BOBJ) Functionality Development, Integration Legacy via integration, data transfer, etc. SAP Legacy Legacy Data Legacy Applications Designed to Work Together ~ Holistic, Flexible, Scalable SAP 2009, SRA International 2009, All Rights Reserved 12

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 13

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 14

15 The SAP PBL Platform VISION: A PLATFORM ENABLING CUSTOMERS TO BECOME MARKET LEADING PBL PROVIDERS DoD Engineering Partner Sub-Assembly OEM Component Manufacturer Regulatory Authorities Provide total Real-Time Asset & Usage visibility across all locations Orchestrate collaborative Engineering & Design process Manage complete subassembly design, production and delivery (e.g. wings) Deliver on integrated production schedule based on global MRP Ensure Program Conformance Best Practices & Implementation Accelerators for key PBL Scenarios Program & Contract Management Contract Execution and Billing Optimize Maintenance Activities Optimize Engineering Change Optimize Surge Requirements SAP Business Process Platform SAP Applications Strategy Mgmt Risk Mgmt SIO by ISV Solutions PPC by RCMO by ERP SRM CRM SCM PLM SAP 2009, SRA International 2009, All Rights Reserved 15

16 SAP s Performance Based Logistics Solution OEM, Suppliers & Partners Manage Contract Manage Product Manage Supply Chain Manage Service Marketing and Business Marketing Acquisition Management Business Acquisition Risk Management Program & Contract Management Program Management Project Planning and Execution Contract & Order Management Federal Contracting Contract Management & Administration Supplier Collaboration Strategic Sourcing Supply Network Collaboration Supply Management Service Parts Planning and Procurement Service Parts Execution and Analytics Mobile Materials Management Organizational Modeling Organizational Generation Organizational Employment Organizational Support Product Lifecycle Management Configuration Management Product Development, Production and Deployment Total Lifecycle Management Compliance RFID & UID Global Trade & ITAR Maintenance Operations Line Maintenance Component Maintenance Depot Level Maintenance Mobile Maintenance Maintenance Support Customers & Channels SAP 2009, SRA International 2009, All Rights Reserved Enterprise Management & Support 16

17 SSM Organizes Information And Drives Behavior Throughout The Extended Supply Chain SAP 2009, SRA International 2009, All Rights Reserved 17

18 Information From Back-end Systems Is Delivered To Interactive User-defined Balanced Scorecards SAP 2009, SRA International 2009, All Rights Reserved 18

19 Track Execution In SAP Strategy Management SAP 2009, SRA International 2009, All Rights Reserved 19

20 The Ability To Drill Down Into Back-end Execution System SAP 2009, SRA International 2009, All Rights Reserved 20

21 Measure Results And Report Using Business Objects SAP 2009, SRA International 2009, All Rights Reserved 21

22 Plan Cost Allocation And Execution SAP 2009, SRA International 2009, All Rights Reserved 22

23 Repair Centered Maintenance - Ability To Drill Down Into Sub-components That Most Effects MTBF SAP 2009, SRA International 2009, All Rights Reserved 23

24 Ability To Compare Performance Of Various Configurations, Versions, Blocks, Etc. SAP 2009, SRA International 2009, All Rights Reserved 24

25 Ability To Consider All Aspects of Product Lifecycle Support And Consider Alternatives SAP 2009, SRA International 2009, All Rights Reserved 25

26 Identify The Individual System IDs, Bumper Numbers etc. For Mission Tasking SAP 2009, SRA International 2009, All Rights Reserved 26

27 Conduct What-if Analysis On Support Alternatives SAP 2009, SRA International 2009, All Rights Reserved 27

28 Drill Down To Component Costs For The Planned Mission SAP 2009, SRA International 2009, All Rights Reserved 28

29 SRA As A PBL Implementer Are You Mission Ready? Personnel Funding Systems Equipment PRACTITIONER-BASED SERVICES Total Lifecycle System Management Supply Chain Optimization Enterprise Resource Planning Logistics Common Operating Picture Logistics Technical Services SUPPLY CHAIN MANAGEMENT SCOR DCOR CCOR LEAN SIX SIGMA PBL STRATEGY PSI CONFIGURATION PUBLIC/PRIVATE PARTNERSHIPS BCA (I, II) INDUSTRIAL BASE OPERATIONS ASSESSMENTS LEAN THINKING SCM BEST PRACTICES SUSTAINMENT MATURITY RISK MANAGEMENT INDUSTRIAL CAPABILITIES (ICAs) BENCHMARKS SPECIALIZED STUDIES CUSTOMIZED TRAINING PROGRAM & PROJECT MANAGEMENT PMBOK SAP 2009, SRA International 2009, All Rights Reserved 29

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 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: SAP 2009, SRA International 2009, All Rights Reserved 30

31 SAP For Performance Based Logistics Contact Information Jon Newsome Sustainment/PBL Solution Principal Phone: Bob Daniell Principal Lifecycle Management Phone: SAP 2009, SRA International 2009, All Rights Reserved 31