American Military University Supply Chain Discussion

Description

After completing the readings for the week, offer your perspective on what is contract management, the contract life cycle, and contracting competencies.  Consider the four supply chain alignment configurations discussed in the Dynamic Supply text.  The four supply chain configurations are lean supply chains, agile supply chains, fully flexible supply chains, and continuous replenishment supply chains.Program Management
Courtesy Professor
Ryan Funkhouser
OBJECTIVES
 Distinguish among program, project and product
management terms.
 Describe the major tasks performed by a
program manager.
 Discuss the variables a PM must influence.
 Compare the strengths and limitations of matrix
and traditional organizations.
 Describe 3 reports a PM must submit.
 Differentiate between WIPT and OIPT.
WHAT IS AN ACQUISITION PROGRAM?
A directed, funded effort that is designed to
provide a new, improved, or continuing
weapons system or automated information
system (AIS) capability in response to a
validated operational need.
DoD 5000.2-R
WHAT IS PROGRAM MANAGEMENT?
The process of planning, organizing,
staffing, controlling, and leading a
defense acquisition effort through
development, production,
deployment/fielding, and disposal.
Note: these are the managerial functions!
CRITERIA FOR PROGRAM MANAGEMENT
 High dollar value.
 Defense urgency – high priority effort.
 Service [e.g., Army] or OSD recommendation
based on:
 Technical involvement.
 Organizational complexity.
 High level interest.
PROGRAM EXECUTIVE OFFICER
GROUND COMBAT SYSTEMS
ROLE OF THE PROGRAM MANAGER
1.
2.
3.
4.
5.
Serves as a materiel developer.
Plans and manages acquisition programs IAW
policies and procedures.
Provides guidance, oversight and control to ensure
project is developed IAW charter.
Develops and submits resource requirements.
Develops and gains support for the APB.
ROLE OF THE PROGRAM MANAGER
6. Ensures the APB and RFP are complete and
implements the ORD.
7. Prepares and submits timely reports.
8. Implements the IPT concept.
9. Coordinate HTI considerations, if applicable.
10. Serves as configuration manager.
11. Reduce program risks whenever possible.
PROGRAM MANAGER’S CHARTER
 Name of the program manager
 Supporting activities
 Detail of support being provided
 Authority of the program manager
 Reporting channels
 Program element(s)
 Special instructions
 Termination of the PMO
SPECTRE
PM
DOD PM POLICIES



Acquire quality products that satisfy user
needs.
Implement a robust science and technology
program that will ensure a technologically
superior force.
Ensure operational support for systems – use
a total systems approach.
DOD PM POLICIES
 Create a long range investment strategy to
support military into the future.
 Use commercial products when feasible.
 Foster competition when feasible.
DOD PM POLICIES
 Rely on Best Practices and reduce Government-
unique specifications.
 Use advance procurement when it makes good
business sense.
 Develop an acquisition strategy that includes
open systems, risk management, M&S,
warranties, and environmental considerations.
DOD PM POLICIES
 Continuous Acquisition and Life-Cycle Support
(CALS) – on-line access to contractor-prepared
technical data.
 Streamline acquisition programs.
 Consider potential for international
participation in program.
 Encourage joint programs.
DOD PM POLICIES
 PEO given program responsibility unless an
exception is made.
 Maximize use of DCMC personnel at contractor
facilities.
 Environmental, safety and health
considerations included in the acquisition
strategy.
DOD PM POLICIES
 Modeling and Simulation will be applied
throughout the program when appropriate.
 Ensure Best Value when planning depot-level
support for the system.
 Use warranties when cost-effective.
 Maintain control over government property
issued to contractors.
DOD PM POLICIES
 Integrate DT, OT, LFT&E, and M&S into an
efficient continuum. Avoid duplicating tests.
ORGANIZING THE PMO
USD (AT&L)
or
ASD(C3I)
AAE
PEO
PM
FY02 PEO STRUCTURE
Previous PEO/DSA Structure
New PEO Structure
PEO, AVIATION
PEO, AVIATION
PEO, TACTICAL MISSILE
PEO, SMART MUNITIONS
PEO, AIR AND MISSILE DEFENSE
PEO, AIR AND MISSILE DEFENSE
PEO, INTELLIGENCE, ELECTRONIC WARFARE AND
SENSORS
PEO, INTELLIGENCE, ELECTRONIC WARFARE AND
SENSORS
PEO, GROUND COMBAT & SUPPORT SYSTEMS
PEO, GROUND COMBAT SYSTEMS
DCG, ACQ, SMDC
ALIGN PROGRAMS UNDER BMDO & PEO, AMD
PEO, STANDARD ARMY MANAGEMENT INFORMATION
SYSTEMS
PEO INFO SYS
ALIGN ORGANIZATION UNDER PEO, C3P
DSA, AVIATION & MISSILE COMMAND
ABOLISH
DSA, COMMUNICATIONS-ELECTRONICS COMMAND
ABOLISH
DSA, TANK-AUTOMOTIVE & ARMAMENTS CMD
ABOLISH
ABOLISH, REMAINS CIO, NGB; PMs TO PEO, C3P
JOINT PM, BIOLOGICAL DEFENSE
PEO, CHEMICAL/BIOLOGICAL DEFENSE
PEO, COMMAND, CONTROL AND COMMUNICATIONS
SYSTEMS
PEO, COMMAND, CONTROL AND COMMUNICATIONS,
TACTICAL
PEO, INFORMATION STRUCTURE
PEO, COMBAT SERVICE/ COMBAT SUPPORT SYSTEMS
PEO, AMMUNITION
PEO, SOLDIER
TRADITIONAL PM ORGANIZATION
Program Manager
Logistics
Research and
Development
Training
Production
Business
Management
Technical
Management
PM WITH MULTIPLE PRODUCTS
Program Manager
Product
Manager
A
Product
Manager
B
Product
Manager
C
MATRIX SUPPORT
 PM/PEO responsible for program success.
 PM/PEO (as materiel developer) decides on
source of program support – either materiel
command or contractor.
 Use OMB Cir A-76 (cost comparison) for
determining best value.
PM W/MATRIX SUPPORT
Commodity (Materiel)
Command
Program
Manager
Maintenance
Materiel
Management
Functional
support to
the PM
Procurement
Production
ADVANTAGES OF TRADITIONAL PMO
 PM has full line
authority.
 All members directly
responsible to the PM.
 Shortened lines of
communication.
 Maintains a permanent
cadre of experts.
 Strong and separate
identity.
 Quick decision-making.
 Unity of command.
 Structurally simple and
flexible.
 Supports a holistic
approach.
ADVANTAGES OF MATRIX PMO
 The project is the point
of emphasis.
 Reasonable access to
a large reservoir of
experts.
 Rapid and flexible
response to clients.
 Less anxiety when the
project is completed.
 Better usage of
corporate resources.
 Maintains consistency
with corporate policies.
WORKING WITH OTHERS
 Program managers must work with others in
order to accomplish the mission.
 The most successful program managers have
the ability to get others to work with them.
INTEGRATED PRODUCT AND PROCESS
DEVELOPMENT (IPPD)
A management technique that
1. Integrates all acquisition activities through
multidisciplinary teams.
2. Optimizes the design, manufacturing and
supportability processes.
3. Facilitates meeting cost and performance
objectives from concept through production,
including field support.
4. Key tenet is multidisciplinary teamwork
through Integrated Product Teams (IPTs).
INTEGRATED PRODUCT TEAMS
 IPT – Integral part of the oversight and review
process.
– Overarching IPT (OIPT) – top level OSD review.
– Working level IPT (WIPT) – focuses on one
topic.
– Program Office IPT – assists the PM manage
day-to-day activities.
IPT AUTHORITY
 The team should be given
 Authority
 Responsibility
 Resources
to manage its product and its risk
commensurate with the team’s capabilities.
OVERARCHING IPT
Focus
Responsibilities
 Strategic guidance
 Program success
 Tailoring
 Functional area
 Program assessment
leadership
 Independent
assessment
 Issue resolution
 Resolve issues
elevated by Working
Integrated Product
Teams
WORKING LEVEL IPT
Focus
Responsibilities
 Planning for program
 Functional expertise
success
 Opportunities for
acquisition reform
 Identify & resolve
program issues
 Present program
status
 Empowered
contribution
 Recommendations for
program success
 Communicate status
and unresolved issues
PROGRAM IPT
Focus
Responsibilities
 Program execution
 Manages complete
 Identify and implement
scope of program,
resources and risk
 Integrates Government
and contractor efforts
 Reports program
status and issues
acquisition reform
Milestone Decision Authority
DAB or MAISRC
Overarching
IPT
Oversight
& Review
Contracting
IPT
Execution
Test IPT
Other IPT
(As needed)
Program
IPT
WIPT
Cost/Performance
IPT
PM / TSM RELATIONSHIP
 PM with AAE/PEO Charter authority and monetary
resources. Has overall responsibility for systems
development, acquisition, and fielding.
 TSM with TRADOC Charter authority, interfaces with
PM throughout development and acquisition
processes to ensure user requirements are a major
factor in all program decisions. Defends the program
against challenges of system need.
PM/TSM INTERFACE
 Technical feasibility
 Acquisition Plan
and
Strategy
 Technical
demonstration
 Developmental testing
 System fielding
 Concept definition
(MNS)
 Operational
Requirements
Document (ORD)
 MANPRINT
 User’s operational
testing
 Force integration
SYSTEMS INTEGRATOR (DCSOPS)
 Assigned to ODCSOPS.
 Validates QQPRI.
 Develops the Army position on proposed MNS.
 Identifies and coordinates the system and
organization.
 Resolves fielding issues.
And…..
SYSTEMS INTEGRATOR (DCSOPS)
 Coordinates doctrine and organization
development.
 Monitors development, testing, procurement
and fielding activities.
 Establishes distribution and redistribution
priorities.
Acquisition Categories (ACAT)
ACAT 1D:
Major Defense
Acq Pgms
ACAT IC:
ACAT IAM:
Major AIS
Acq Pgms
ACAT IAC:
Major
Systems
all other systems
(except for Army
ACAT II:*
ACAT III:
Navy, USMC)
Army
Navy
USMC
ACAT IV:
• DAB review
• Designated by DAE
• Decision by DAE
• Component review
• Designated by DAE
• Decision by Svc Sec/CAE
$365M RDT&E or
$2.19B Procurement
(FY2000 Constant $)
• ITOIPT review
• Designated by ASD(C3I)
• Decision by ASD(C3I)
• Component review
• Designated by ASD(C3I)
• Decision made by Component
Chief Information Officer
$378M Life Cycle Cost or
$126M Total Prog. Cost or
$32M Prog. Cost
in any single year
(FY2000 Constant $)
• Does not meet ACAT I Criteria
• Designated by Svc Sec/CAE
• Decision by Svc Sec/CAE
$140M RDT&E or
$660M Procurement
(FY2000 Constant $)
• Does not meet ACAT I, IA or II Criteria
• Designated IAW Component policy
• Decision at lowest appropriate Level
• Not otherwise designated ACAT I, IA, II or III
• Designated IAW Component policy
• Navy/USMC ACAT IVT/IVM
• Decision at lowest appropriate level
*Army has an ACAT IIA category for AIS reviewed at Army CIO level
No Fiscal
Criteria
See AR 70-1 (Army)
& SECNAVINST 5000.2B
(Navy and Marine Corps)
Milestone Review Process
(Illustrative)
• Make ACAT IAM
ASD
Decisions
(C3I)
• Signs ADM
• Reviews CAE/OIPT MAISRC
Recommendations
• Finalizes ADM
ACAT IAM
ACA
ID & IAM
• Validates Requirement
• Assesses Joint Potential
ACAT
IC/IAC/II
CAE
Component HQ Review
ACAT
III
PEO
PM
OIPT
• Makes ACAT ID USD
Decisions
(A&T)
• Signs ADM
DAB
DRB
ACAT ID
• Issue
Resolutio
n
• Makes ACAT IC, IAC
& II Decisions
• Signs ADM
JROC
• Issue Resolution
• Makes ACAT III
Decisions
• Signs ADM
Overarching
IPT’s
(OIPT’s)
Working-Level
IPT’s
(WIPT’s)
Program Level
IPT’s
IPT’s assist in
oversite &
review
CRITERIA TO BE A PM
 Experience required:
 Four years of acquisition experience; of which at
least 2 years must have been in a program office or
similar organization (defined as dedicated matrix
support to a PM or PEO; DCMC Program Integrator.
 Experience desired:
 Two additional years of acquisition experience
CRITERIA TO BE A PM (CONT.)
 Education desired:
 At least 24 semester credit hours from among the
following disciplines: accounting, business finance,
law, contracts, purchasing, economics, industrial
management, marketing, quantitative methods,
organization and management.
 Master’s degree in engineering, systems acquisition
management, business administration, or a related
field.
CRITERIA TO BE A PM (CONT.)
 Training required:
 One Advanced (Level III) DAU Course in program
management.
Critical acquisition positions may only be filled
by members of an Acquisition Corps.
PM SELECTION CRITERIA
Senior service college grad
 GO/COL/LTC(P) or civilian
equivalent

Common Criteria
Outstanding performance
 2 years experience in a
procurement command
 Advanced PMC graduate
 8 years acquisition
experience
 MS or business degree
 Experience in materiel
management at DA or
higher staff level

Special Criteria
PM Selection Board List
 Branch qualified (military)
 Special technical training

TENURE OF A PM
 Four years or until completing a major program
milestone. E.g., MDR B and C.
 Three years for programs outside the purview
of the AAE.
 Failure to achieve program objectives.
PM REPORTS
 Program managers must submit a number of
reports.
 Some reports are prepared upon achieving a
milestone event while others are calendarbased.
ACQUISITION STRATEGY
 Top level master plan
 Guides entire program
 Unique for every program
 Tailored to meet specific program risks
 Performance
 Cost
 Schedule
 Expedites fielding and deployment
 Updated at each milestone decision review.
ACQUISITION PROGRAM BASELINE
 Sets goals for a program
 Cost
 Schedule
 Performance (including supportability)
 Goals expressed in terms of:
 Thresholds – minimum acceptable level
 Objectives – best capability
 Submitted at each milestone review.
SELECTED ACQUISITION REPORT
 SAR is prepared and submitted to Congress for
all ACAT I programs.
 Software called, Consolidated Acquisition
Reporting System (CARS) is used.
 Provides status of total program (cost, schedule
and performance) as well as unit and life cycle
cost information.
DAES
 Defense Acquisition Executive Summary.
 Highlights potential and actual project
problems to the USD (ATL) before they become
significant.
 Deviations in APB, vulnerability assessments,
etc.
OBJECTIVES
 Distinguish among program, project and product
management terms.
 Describe the major tasks performed by a
program manager.
 Discuss the variables a PM must influence.
 Compare the strengths and limitations of matrix
and traditional organizations.
 Describe 3 reports a PM must submit.
 Differentiate between WIPT and OIPT.
Boston – The new chief of the financially troubled
Big Dig construction project has fired six consulting
firms, declaring it excessive to spend $439,000 per
year on political lobbying and public relations.
The firings came under a sweeping employee
purge and spending review by Andrew Natsios.
His predecessor, James Kerasiotes, was fired after a
federal audit charged him with concealing a
$2 billion cost overrun.
The Central Artery/Third Harbor Tunnel Project
will bury three miles of Interstate 93 beneath Boston.
Original cost estimated at $2.6 billion, but current
estimate is $13.6 billion.
Source: Associated Press, 5/7/2000
Navy Anti-Missile Program’s Cost Balloons By
Almost $2 Billion
(Defense Week, August 13, 2001)
The Navy’s short-range missile-defense program will
cost $1.8 billion more than the service said a year ago,
an increase of just over 25 percent, according to Defense
Department and congressional documents. The Pentagon
would not confirm or explain the cost increase, but
observers said it probably was related to the fact that the
program is two years behind schedule.

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