In This Issue
- TOC World® 2006!
- US Navy Awards a Major Contract to a Connecticut Small Business
- Enterprise AIRSpeed
- The Transformation of Marine Aviation Logistics
- MALSP II Pilot Tested in Combat Environment
- AGI Named Seaport-e Vendor by U.S. Navy
- Upcoming Open Courses
- AIRSpeed Group Completes Jonah Program®
- NAVAIR Commander's National Award Ceremony Set
- A Presentation: Towards a TOC System-Wide Solution to Improve Student Retention in the Department of Mathematics at an Urban College
- Election of New Managing Partner of Avraham Y. Goldratt Institute, LLP Announced
Letter from the Editor
From the Editor-In-Chief:
Welcome back to this edition of the TOC Times. This edition is chocked full of articles and upcoming events. Speaking of upcoming events, have you registered for TOC World® 2006? We have just under six (6) weeks remaining. With a great agenda of industry presentations and educational break-out sessions, this is one TOC World® you don’t want to miss. Keep checking back at www.goldratt.com for continuing updates to TOC World® 2006.
Enterprise AIRSpeed, is by Lieutenant Commander Mark Nieto, US Navy. Enterprise AIRSpeed is the integration of three business process improvement methodologies: Theory of Constraints, Lean, and Six Sigma. Applied to the Naval Aviation Enterprise, the Enterprise AIRSpeed Program is designed to help Navy and Marine Corps Aviation reduce the total delivered cost of aviation maintenance and supply without sacrificing readiness. This is accomplished by applying TOC, Lean and Six Sigma in a supply chain management approach. Combined, these methodologies are very powerful in helping organizations provide a continuous process improvement tool set with the capability of solving complex enterprise-level problems, and identifying high-value target opportunities for continuous process improvement. You’ll learn more about this in the TOC World® 2006 presentation, Using TOC, Lean and Six-Sigma in Combination: Maximizing the Return on Your Improvement Dollars.
The Transformation of Marine Aviation Logistics, by Colonel Pierre C. Grant, US Marine Corps, explains how Enterprise AIRSpeed concepts can be applied to future war fighting, specifically, Enterprise AIRSpeed enables flexible and rapid response without having to deploy a large logistics footprint. MALSP II Pilot Tested in Combat Environment, is an article that explains how the Patriots of Marine Aviation Logistics Squadron 26 have applied AIRSpeed concepts during their deployment to Al Asad, Iraq.
How about those AIRSpeed Jonahs? In September 2005, 14 AIRSpeeders received their Jonah Certification having successfully completed course requirements. The Jonah Program® facilitated by Suzan Bergland (AGI’s North America Group Vice President of Implementation Services) and David Bergland, Advisory TOC Consultant exercised the group across the entire Thinking Process Road Map with emphasis on creating buy-in to change. Successfully completing the Jonah Program® satisfies part of the Enterprise AIRSpeed Professional Development and Qualification requirement. Well done, Jonahs! Among the topics were:
Towards A TOC System-Wide Solution to Improve Student Retention.
What started as an idea is being transformed into reality at Medgar Evers College of City University of New York. Principal Investigators, Dr. Darius Movasseghi, Professor of Mathematics and Department Chair, Dr. Umesh Nagarkatte, Professor of Mathematics, and Dr. Joshua Berenbom, Associate Professor of Mathematics, began their TOC journey through the Jonah Program® to “Improve student retention in the Department of Mathematics.” Quite simply, it is about leadership and vision: administration, faculty, and counselors working together to ensure student success.
Following approval from MEC’s President Jackson, Directors from Student Advocacy and Support Services Center (SASSC), First Year Program (FYP) and Post-secondary Readiness Center (PSRC) and faculty members received training in Thinking Process skills as part of the organizational alignment strategy.
Medgar Evers College, established in 1969 as part of the City University of New York, is an undergraduate commuter institution offering programs in business, education, natural sciences and mathematics, nursing and social sciences. The college motto is: "Creating Success, One Student at a Time".
Steve
TOC World® 2006 will make its return to the exciting Mohegan Sun in Uncasville, Connecticut, March 29-31, with a pre-conference session on March 28th.
In-Depth Case Studies!
TOC World® 2006 will certainly have a "world" flavor, with case study presentations from five countries - Australia, Israel, Russia, Singapore and the United States.
Bruce Watson, Director of Demand-Pull Implementations at a large multi-national consumer products company, which manufactures in over forty countries and has significant distribution and sales on four continents, returns as a TOC World® presenter. Bruce's session at TOC World® 2004 was one of the most popular of that conference. At the 2006 conference, he will be presenting Mastering the Fundamentals.
Other presentations include Applying TOC for Operations (DBR) and TOC for Supply Chain to a Healthcare Environment to Significantly Improve Patient Care - National University Hospital Singapore; A Pioneer TOC SCM Application in Russia - The TOC Center (Russia); Using TOC to Shape the Workforce at the 412th Test Wing - Air Force Flight Test Center (AFFTC) 412th Test Wing; and Using TOC to Develop Successful Workforce Development Initiatives - IBM.
Breakout Sessions!
TOC World® will once again provide educational, informative and insightful breakout sessions. Topics at this conference include:
- How to Apply Lean Concepts to Projects without Shooting Yourself in the Foot
- TRR to Inventory: Designing the Linkage
- TOC Project Management - Experience it Yourself!
- TOC Thinking Processes - More of the Right Stuff at Edwards Air Force Base
- Reverse Replenishment
- Aligning Responsiblity with Authority - Deploying Expectations
- Using the FRT for Vision and Alignment
- When You Just Can't Get 'No' for an Answer: The Practical Application of the Six Steps of Buy-In where Buy-In is Critical
- Customizing Implementation Networks for Successful Deployment
- Writing and Using Elevator Statements for Sustaining Deployment
Networking Receptions!
On Tuesday and Wednesday evenings, we will host networking receptions at Mohegan Sun. This popular event moves to the Mashantucket Pequot Museum and Research Center on Thursday. The receptions will feature cocktails and hors d'oeurves, and provide an opportunity to network with conference attendees and presenters in an enjoyable, relaxed environment.
PreConference Session!
For those new to TOC, there will be a PreConference seminar - An Overview of TOC - from Thinking Processes to Applications - covering the basics of TOC. This one-day session will be held on Tuesday, March 28.
The session will better equip the person new to TOC with the basics of TOC and insights that will enable the attendee to achieve greater depth of learning during the full conference sessions.
The price for the PreConference seminar is US$495.
To qualify for this option, five or more persons from the same company and same location must register.
**AGI Jonah or Expert Registrations
To qualify for this option, you must be a Jonah trained by AGI (Jonah Program® or External Constraints Course), or you must have completed an AGI licensing, expert, deployment or technical training program.
For up-to-the-minute information, please visit our TOC World® 2006 website.
US Navy Awards a Major Contract to a Connecticut Small Business
The US Navy recently awarded a major contract to The Avraham Y. Goldratt Institute, A Limited Partnership (AGI). AGI is pleased to announce it was awarded a firm fixed price contract with a ceiling of $96,629,091.65 to continue implementing Enterprise AIRSpeed across the Naval Aviation Enterprise (NAE) over a five-year period. Enterprise AIRSpeed is an enterprise-level, system of systems approach to aviation maintenance and supply designed to produce the right readiness at the lowest cost across the NAE.
AGI is teamed with Dynamics Research Corporation (DRC), Coalition Solutions Integrated, Inc (CSI) and Mr. Laurin P. Eck (Independent Contractor) to deliver Theory of Constraints (TOC), Lean, and Six Sigma in an integrated approach to achieve the Naval Aviation Readiness Integrated Improvement Program’s (NAVRIIP) objective of achieving Cost-Wise Readiness. This effort will include the design, deployment, and sustainment of 71 sites to include intermediate maintenance activities, organizational maintenance activities, aircraft carriers, and amphibious assault ships. It also includes applying the Enterprise AIRSpeed methodology to the design of the new CVN-78 class aircraft carrier, as well as Marine Aviation Logistics Support Program II (MALSP II), the transformation of MALSP to support Sea Basing and expeditionary maneuver warfare through significantly reduced logistics footprint forward. As part of the sustainment strategy, the contractor team will provide training and education across a wide-spectrum of activities to include naval aviation leadership, AIRSpeed professionals, instructors, and formal schools.
Avraham Y. Goldratt Institute, LLP (AGI) is headquartered in New Haven, Connecticut. AGI has over 19 years of development, implementation, and education experience in TOC. AGI personnel excel in leading large, complex organizations through the design, implementation, and sustainment phases that make their business transformation successful. AGI teamed with DRC under the Office of Naval Research’s Lean-Pathways program to assess the utility of TOC and Lean methodology for ship design while underway with USS GEORGE WASHINGTON (CVN 73). AGI has also performed work applying AIRSpeed methodology to CVN 21 design while underway with the USS HARRY S TRUMAN (CVN 75). Under the original Enterprise AIRSpeed contract, AGI has completed Enterprise AIRSpeed site designs for 13 intermediate maintenance activities and two naval depots.
Dynamics Research Corporation (Nasdaq: DRCO) is headquartered in Andover, Massachusetts and has major offices in Vienna, Virginia and Fairborn, Ohio. The company has approximately 2,000 employees located throughout the United States providing direct support to all branch services of the Department of Defense. Dynamics Research Corporation is an innovative solutions provider that partners with its customers to apply proven processes and technologies. DRC has extensive experience teaching and leading Lean and Six Sigma workshops, as well as applying these tools, through the Office of Naval Research’s Lean-Pathways on programs such as Suppliers to the Original Equipment Manufacturers on the SLAM-ER Missile and the San Antonio LPD-17 Class Ships, and Lean Improvement Workshops on USS GEORGE WASHINGTON (CVN 73), USS HARRY S TRUMAN (CVN 75), and USS THEODORE ROOSEVELT (CVN 71). For additional information about DRC please visit the website at www.drc.com.
Coalition Strategies Integrated, Inc. (CSI) is a woman-owned small business headquartered in California, Maryland. CSI, Inc. is focused on providing products and services for the Department of Defense. CSI works with the Office of the Secretary of Defense (OSD) to provide support for the DoD Logistics Transformation Strategy which includes Focused Logistics. CSI supports the development of policy and procedures for implementing Total Life Cycle Systems Management (TLCSM), Performance Based Logistics (PBL) Policy, Strategic Microelectronics Management, Force Centric Logistics Enterprise, and Sense and Respond Logistics.
Mr. Laurin P. Eck is an independent contractor with over 20 years of active duty experience in Marine Corps Aviation and Supply logistics. He successfully developed, directed, and deployed RIFLe, Relevant Information for Leadership, an initiative he conceived based on early experiences with applying Theory of Constraints principles portrayed in the book The Goal. In addition to site implementation, Mr. Eck and AGI are working jointly on the enterprise Buffer Sizing Tool used in implementing Enterprise AIRSpeed and the Expeditionary Buffer Management Methodology as part of the MALSP II Pilot program.
According to Bill McClelland, President of Operations for AGI’s North American Group, “We are eager to continue the implementation of Enterprise AIRSpeed across the Naval Aviation Enterprise (NAE). With our team members from Dynamics Research Corporation and Coalition Strategies Integrated, Inc., our combined expertise in Theory of Constraints, Lean Six Sigma, and Integrated Vehicle Health Management will enable Cost-Wise Readiness across the business of Naval Aviation. We look forward to ensuring this AIRSpeed methodology is aligned with the Department of Defense Continuous Process Initiative.”
For additional information, please contact Mr. Steve Simpliciano at (203) 624-9026, extension 302, or by e-mail at steve.simpliciano@goldratt.com.
My name is LCDR Mark Nieto and I am an Aviation Maintenance Officer (1520) assigned as a Team Lead for the Enterprise AIRSpeed program. The Enterprise AIRSpeed teams consist of military, contractor and civilian personnel who have been assigned from Commander Naval Air Forces (CNAF), Headquarters Marine Corps (HQMC), Naval Air Systems Command (NAVAIR) and Naval Air Technical Data and Engineering Command (NATEC). The teams travel around the world to facilitate AIRSpeed designs at Navy and Marine Corps intermediate and depot level maintenance activities as well as Supply Departments/Divisions. The primary program office is comprised of 42 dedicated active duty maintenance and supply officers, enlisted, civil service and contractors located in offices at NAS North Island and NAS Patuxent River. The program also has 41 qualified NAVAIR Fleet Support Team (FST) and NATEC personnel from around the Fleet. The purpose of this article is to briefly introduce Enterprise AIRSpeed structure and methodology from a team lead perspective. I would also like to focus on how Theory of Constraints (TOC) is used to "design" the future state of Naval Aviation and how Lean and Six Sigma are utilized with TOC to achieve that future state of AIRSpeed.
BACKGROUND
In the past, Naval Aviation has been very successful at generating Readiness; however we have always done so at a great cost. Maintaining Naval Aviation today while building the Naval Aviation of tomorrow requires that we now embark on a journey to ensure that we don't buy more readiness than we need. We refer to this as Cost-Wise Readiness (CWR). The vehicle for this journey is Enterprise AIRSpeed, Naval Aviation Readiness Integrated Improvement Program's (NAVRIIP) architecture for realizing Cost-Wise Readiness across the Naval Aviation Enterprise. Unlike the current practice of operating within our disciplines, commonly referred to as stovepipes, this is an enterprise approach of looking at the business of Naval Aviation. This enterprise is defined as the integration of organizational, intermediate and depot levels of maintenance with the retail and wholesale activities of supply as they support ashore and afloat activities.
Enterprise AIRSpeed is doing something that no other DOD activity has attempted; integrating TOC, Lean and Six Sigma methodologies and applying them across the entire enterprise in order to effectively and efficiently prepare Ready For Tasking (RFT) aircraft. Most commercial companies and DOD activities choose either TOC, Lean or Six Sigma. Some choose Lean and Six Sigma but only Naval Aviation has decided to utilize all three tools simultaneously. Naval Aviation is truly paving the path for the DOD.
Enterprise AIRSpeed is sponsored by CNAF and is governed by an Executive Steering Committee consisting of representatives from CNAF, Naval Inventory Control Point, Philadelphia (NAVICP), Defense Logistics Agency (DLA), NAVAIR, OPNAV, HQMC and the Center for Naval Technical Training (CNATT).
WHAT ARE THE METHODOLOGIES?
Theory of Constraints (TOC) is based on the belief that any organization has at least one constraint and that any improvements on non-constraints may not yield as significant Return On Investment (ROI) as working on the constraint itself once identified. It is also based on Market Demand-Pull Logistics, which creates architecture where physical inventory (buffer) levels and related maintenance processes at intermediate and depot activities are based on actual realtime demand (pull) in the Time to Reliably Replenish (TRR).
Lean focuses on the removal of waste-defined as anything not necessary (no value added) to produce the product or service with a reduction in Cycle Time for the product or service provided to the intended Customer.
Six Sigma is based on the assumption that the outcome of the entire process will be improved by reducing the variation of multiple elements, inputs and sub-processes.
AIRSpeed provides:
- A proven set of industry tools into Naval Aviation Enterprise
- Leveraging of existing initiatives
- Local production/replenishment decisions made with Global impact known
- A culture of continuous process improvement
- Increased, improved and effective support of the Fleet Response Plan (FRP)
- Improved Logistics/Maintenance Response
- Improvement to throughput (readiness) while identifying reductions to Operating Expenses and Investments such as inventory, manpower, support equipment and facilities.
WHAT DO WE DO?
The Basics of an I-Level AIRSpeed Design Phase:
- Determine a starting point by selecting top local and system-wide readiness/cost degrader components to determine the I-level work centers to begin design.
- Determine the "As-Is" environment with physical configuration diagrams, local process flow diagrams and documentation of local processes.
- Measure capacity of test benches/SE/manpower in selected work centers.Determine I-Level work center TRR's and Supply processing TRR's to establish total local TRR's based on time for component to go from the aircraft, to the 1-Level, through the repair process and onto Supply's shelf Ready For Issue (RFI). Think of total TRR as attaching and activating a stopwatch on a non-RFI component from the time it is removed from an aircraft and stop the watch after it has gone through the repair process and is actually on the shelf RFI available to the end-user.
- Determine TRR's for consumable and repairable components from external activities. This encompasses the time from when a part was determined to be a requirement, ordered and finally received and available for use.
- Evaluate Fleet (end user) demand patterns to determine proper physical inventory sizes based on demand patterns during established TRR's. Evaluate further the demand patterns and TRR's to make cost-benefit analysis of inventory size versus reduction of TRR's through focused Lean and Six Sigma initiatives to reduce associated inventory size.
- Establish rules and provide tools for managing components through the time domain to ensure established TRR's are met and physical inventory levels are maintained to meet readiness requirements.
- Determine structure, rules and processes for To-Be future environment and document.
- Train site personnel in the skill sets necessary to continue the design in the remainder of the I-Level and actual deployment of the design.
- Develop a detailed project plan for the deployment of design.
One of the primary concepts in an AIRSpeed design is focusing on the proper levels of Shop Replaceable Assemblies (SRA) and consumable parts, in order to facilitate the reduction or elimination of acquisitions for new more expensive Weapon Replaceable Assemblies (WRA). Proper WRA inventory levels require that the supporting SRA and consumable inventories must be in place. What determines the inventory levels? The TRR's and customer demand patterns. Lean and Six Sigma tools are applied to protect constraints and ensure TRR's within the work center and local Supply activities. They also enable a balance of TRR and inventory levels. Analysis is conducted during the AIRSpeed design and deployment to identify those areas where application of Lean and Six Sigma can reduce TRR to meet current allowance levels, or where TRR reduction can substantially reduce inventory levels - even below current allowances. In some cases however, reduction of TRR is not cost effective, or no level of TRR reduction will lead to an inventory level to meet current allowances. In these cases inventory re-location in the Enterprise or possible investment will be necessary. There are also efforts just beginning to explore AIRSpeed integration with other inventory management initiatives from DLA and NAVICP such as Multi-Indenture SHORCAL/AVCAL (which also focuses on investment in consumables and SRA inventory) as well as National Inventory Management Strategy-NIMS (an effort to manage consumable inventory physically and financially from an enterprise perspective rather than locally).
The implementation of an AIRSpeed design is a substantial effort. Current implementation design phases involve nine onsite weeks over a 16-week period. Enterprise AIRSpeed teams involve anywhere from 20-30 personnel representing Enterprise AIRSpeed facilitators, contractor support, Fleet Support Teams, NATEC and CNAF. Local site design teams are approximately 30 personnel for major I-Level sites and they are comprised of personnel from the local I-Level, Aviation Supply Department and Type Wings.
CONCLUSION
Being an Enterprise AIRSpeed facilitator is the most challenging experience that I have ever had. AIRSpeed is most challenging as it is a cultural change at all levels of the Enterprise. The buy-in and educational process of an implementation is extremely challenging as we are asking people to change the way they have done business for decades. It must be clear that the Marines and Sailors aren't doing anything wrong; they are just doing what they've been taught by their predecessors. No longer can Naval Aviation afford to operate in the same manner, therefore better practices must be incorporated in order achieve Cost-Wise Readiness, be flexible enough to meet the Fleet Response Plan, afford future aircraft/system acquisition and re-capitalization of our aging Fleet.
The response from Fleet sailors and Marines has been overwhelming. The amount of creative ideas and enthusiasm has been incredible. Enterprise AIRSpeed teams discover Sailors and Marines with great ideas and these personnel see AIRSpeed as an avenue to change the barriers that they have had to cope with to perform their jobs. Enterprise AIRSpeed teams and the site design teams they work with continually "trip" over policies, behaviors and measurements that will require elimination or change to enable Enterprise AIRSpeed to succeed. These recommended changes are captured and processed through type Wing Commodores for local elimination/change or escalation to Type Model Series Teams and to the Naval Aviation Readiness Improvement Team (NAVRIT) if necessary.
Being an Enterprise AIRSpeed Team Lead is an incredible experience and traveling around the world working with the outstanding Sailors and Marines of the Fleet is very rewarding. To ensure the sustainment of Enterprise AIRSpeed, the implementation teams will continue to need experienced officers, senior enlisted and civil service personnel representing aviation maintenance and supply from the Navy and Marine Corps until the methods of AIRSpeed are a core competency of the entire Naval Aviation Enterprise.
AIRSpeed designs have been completed at NAS Oceana, NAS Lemoore, MALS-31, NADEP North Island, NAS Whidbey Island, NAS North Island and MALS-11. The remainder of the shore Navy and Marine Corps activities will be designed over the next two years with afloat activities to follow.
Marine aviation logistics is undergoing a sea of change in order to solve root problems of aviation logistics and ensure that Marine aviation units have the necessary logistics support wherever they are located.
To transform a culture is not a simple undertaking. This is especially true for the Marine Corps that has a culture rich in tradition and heritage. For Marine aviation logistics, the use of a central approach in providing logistics for the aviation combat element (ACE) has worked for the past 25 years, including our strong performance in the Iraq war. However, though the world has changed dramatically since the fall of the Berlin Wall, Marine aviation logistics has not.
Why Change?
We must respond better and faster to ever-increasing operational requirements. Marching orders for Marines are clear-the Commandant's direction for transformation is toward expeditionary maneuver warfare (EMW) and seabasing.
In the profession of logistics, things are moving quickly. Opportunities in the form of emerging technologies and modern-day ideas are almost too numerous to recognize and fast-moving to grasp. Meanwhile, aviation logisticians are focused on a host of challenges they must overcome in order to fight today's wars with legacy systems and methods. The bottom line is that logistics will be a crucial factor in future conflicts as a constraint or as a force multiplier. The choice as to what logistics will be is in the hands of those who lead. Leadership must make that choice now.
The Transformation of Aviation Logistics
The Marine aviation logistics support program (MALSP)-a proven model for 25 years-provides a point of departure for moving ahead. Much has changed since MALSP was adopted-change should posture its replacement to adapt to the future. Without question many things can be done to change MALSP-new technical bells and whistles can increase velocity of cycles, lean transport flows, enable seamless and reliable communications, or enhance visibility. The real question becomes, when incorporating potential improvements, in the final analysis, what has really been gained? The transformation for Marine aviation logistics is defined by three key pillars.
- Purposeful change. The transformation is not change; it is change for the better. Change must create greater combat effectiveness.
- New think. The transformation hinges on a new mindset and philosophy. By taking an alternative view and approach, leaders may better solve complex problems, such as dealing with the complexities of expeditionary logistics.
- Culture shift. The transformation is a shift of something fundamental and important-something at the core of our culture. The intent is not to harvest today's "low-hanging fruit." The shift will bear new fruit.
Combining the three pillars provides a guide for what to do, where to go, and how modern-day concepts and technologies can fit in. The Marines of the aviation logistics community have charted a course for their future.
Pillar One: Purposeful Change
Transformation of logistics means being able to respond to future battlefield requirements far better than we can today. It means confidently and reliably providing the right item to the warfighter at the right place and time. It means being able to adapt to a fluid and complex environment with reliable support that is also agile and flexible. To fit within and enable EMW and seabasing it means that logistics must be able to quickly and effectively deploy, employ, sustain, and redeploy with the ACE. How feasible and far off are these future needs for aviation logistics?
During Operation IRAQI FREEDOM (OIF), aviation logistics enabled a remarkable combat flying tempo covering a wide geographic area. Although the cornerstone of this success was the core doctrine of MALSP, its execution exposed many shortcomings and challenges. Recently, the Aviation Logistics Operational Advisory Group (OAG) conducted an indepth analysis of the performance of aviation logistics in OIF. The assessment began with a raw collection of problems and challenges. (See Figure 1.) There is a clear gap between today's reality and tomorrow's needs. For aviation logistics to substantially close the gap requires a bold and new approach.
Pillar Two: New Thinking Approach
The challenges and problems experienced in OIF are not new or unique. In fact, having faced some very similar and seemingly chronic issues in previous wars and deployments, we should assume that the same list will reappear in the future unless something dramatic causes a change. The new thinking processes of the aviation logistics transformation changes the approach. First, eliminating such problems is best accomplished by identifying and eliminating their root cause, and second, eliminating the root cause is a difficult task that requires a creative and bold set of ideas and initiatives.
- Identify root cause. The problems collected from OIF were not viewed (or attempted to be solved) in isolation; rather, these problems were mapped in a strategic construct of logical cause and effect in order to uncover the root cause. What became apparent through the analysis is that many of the problems were the resulting symptoms of well-intending and talented Marines coping with the chaos and uncertainty that surrounds them. "Murphy" is forever lurking, and Marine leaders must always be prepared to deal with him. Murphy drives most of the undesirable logistical behaviors for a military organization either in the combat environment or in preparing for combat. Examples of coping mechanisms are "just in case" stockpiles, exaggerated time estimates, and overly protective behaviors. The accumulation of these behaviors tends to destabilize the entire logistics system no matter how well-designed the system may be. Ultimately, an inability to deal with the uncertainty and variability in a highrisk and fluid environment is what causes military leaders to carry more than they need.
- Eliminate root cause. Resolving the root cause needed a creative and bold set of ideas and initiatives-a better and robust solution set for dealing with variability, uncertainty, and unpredictability. It is not enough to expect that technology will provide the answer for dealing with uncertainty. What is needed is a fundamental shift in how to confront Murphy in every aspect of the business of expeditionary aviation logistics.
Pillar Three: Fundamental Shift
The core driver of our shift from MALSP to MALSP II is a comprehensive solution to the ever-present military logistics dilemma-how much is just the right amount to cover for variability, uncertainty, and unpredictability, and to stay ahead of Murphy. With the redesign of MALSP to MALSP II comes a combination of new processes, new concepts, new policies, new roles, and new opportunities. With MALSP II, technology takes its proper place-as an enabler within a new thinking framework and operating architecture.
Merging the tenets of these three pillars creates the opportunity for the aviation logistics leadership to confront their core constraint and turn it on its head-the end state of the shift is the product called MALSP II. Exactly what is MALSP II, and how does it offer a better future logistics system?
MALSP II
MALSP II is the aviation logistics future support system. Our vision is that MALSP II will provide lighter, smaller, and more effective support packages; introduce a new methodology for better and continuous tailoring of the support packages; establish a proactive logistics support system of early warning protections and controls; and afford a better understanding of capacity needed for sustainment and surge. MAL-SP II will increase the performance of aviation logistics as a system to improve support to the warfighter. (See Figure 2.)
The key features of MALSP II are increased agility, enhanced flexibility, better responsiveness, a proactive and stable system, ability to surge and sustain, and an adaptive model.
Agility. Increased agility is achieved by the redesign of contingency support packages (see Figure 3) that are positioned closest to the warfighter. The new construct of the package combines two key elements.
- The "pattern of demand" (PoD) (all the peaks, spikes, valleys, etc.) of the things that the warfighter will likely consume or need. The pattern tells us more than normalized averages we apply in today's calculations.
- The "time to reliably replenish" (TRR) is the worst case of how much time elapses to replenish a thing (materials, resources, etc.) back in to the support package (considers all events in an interdependent chain).
Taking the worst case of these two elements, the amount of material in the support package is determined by asking, "what is the worst case (highest aggregation of PoD) of demand that must be satisfied during the worst-case length of time (longest TRR) it will take to replenish the support package?" Though it may seem counterintuitive, these new support packages are smaller than those we construct today. More important, these packages are better able to satisfy the worst-case warfighter's resource needs. The central and new idea is that these packages should be thought of as time buffers-protecting the warfighter against the "shock" of demand variation and replenishment variation-rather than as "stockpiles of things."
Flexibility. Support packages are no longer "fixed allowance" entities. They are continuously reshaped with a clearer understanding and diligent application of TRR and PoD. This methodology creates an improved opportunity to rapidly right-size resources based on specific scenariosthat is, how factors such as geographic dispersion, environmental conditions, combat consumption rates, replenishment modes, and schemes affect TRR and PoD. Resource support packages can be dynamically reshaped based on a continuous measurement of TRR and PoD; furthermore, logistical improvements (footprint reductions, increased safety, or confidence, etc.) can be gained by focusing on TRR and/or PoD. As adjustments are made in either TRR and/or PoD, packages are reshaped with an expected connection to the logistical performance of the package.
Responsiveness. The operation of the overall MALSP II system, functioning on a demand-pull set of rules and flows, is what increases responsiveness to warfighter needs (response times, fill rates, etc.). The critical link in the chain is the demand pattern of the warfighter. The warfighter's demand pattern drives the makeup and the actions of the entire system. The support packages nearest to warfighters are "backed up" by a supporting chain of similarly constructed resource support packages (based on a combination of TRR and PoD) placed at strategic nodes. The operation of the system is triggered by the demand of the warfighter that sets off an integrated series of actions upstream; each node responds to the demand-pull of the node that it is designed to support. Information and material flows occur frequently (realtime or batched daily) from point of consumption to point of origin (source of supply); the performance increase is seen when each node is properly constructed (worstcase TRR and PoD) and when demand-pull flows (both information and material) are enforced. This pull-oriented system drives fundamental changes strategically through a revamped global distribution model with changes to wholesale and retail stock policies. It does so tactically, though changes in how maintenance and supply work flows occur at the shop level. Responsiveness is gained when the local and global actions are better aligned to the goal of the system-effective delivery to the warfighter.
Proactive focus. MALSP II creates a tremendous opportunity for leaders to be proactive-acting in modes to create success rather than as "firefighters." (See Figure 4.) Recalling that each of the packages is now thought to be a time buffer, the total system of buffers-each of which inherently accounts for the worst-case variation-creates an alternative view of "safety" and defines new decision making processes.
- Safety factors. Safety that was previously "hidden" throughout the system (each person in the system naturally creates his own safety layers) is now exposed, aggregated, and repositioned where it can best protect the overall system. As an example, safety factors previously assumed to be needed close to the warfighter-such as just in case spares or skill sets-are now relocated strategically where they have a greater likelihood to succeed in responding to the many local urgent and unpredictable situations that will naturally arise in the chaos of reality.
- Managing by the buffer concept. Creating planning and action decision thresholds at each of the support nodes (buffers), MALSP II enables leaders to control stability of the entire support system. The series of control mechanisms will (1) identify emerging "threatening" situations (threatening in the sense of potential to compromise the ultimate goal of guaranteed delivery to the warfighter), (2) provide an overall picture of the stability of the entire support system, and (3) point leadership to a potential "troublemaker" or emerging weak link that may need attention in the overall system.
Although not completely predictive, the MALSP II system of buffers forms a forward-looking picture so that leaders can shift into a proactive mode of thinking and behaving. In addition, the MALSP II architecture shows us how we can rapidly insert and fully optimize true predictive tools we expect to see in the near future-on-board weapons systems prognostics and sensors, intelligent software agents that optimize squadron maintenance and operations forecasts.
Sustainability and surge capacity. The MALSP II system creates a better understanding of the capacity and interdependencies of each node in relation to the performance goal of the overall system. This understanding enables a new strategic decision making analysis when addressing what might otherwise be viewed as excess capacity. A fundamental principle of the philosophy entails not "leaning out" any capacity until it is understood in the context of surge and sustainment capability, now and in the future.
Adaptability. MALSP II is an adaptable solution because it is fundamentally a thinking approach at its very foundation. It is not platform-centric or software dependent. The MALSP II framework, philosophy, and thinking processes provide the open "cognitive framework" to rapidly recognize and accept new ideas, and it has the operational agility to respond to important strategic situations.
The MALSP II operating architecture will fit into future warfighting and logistics concepts such as seabasing and EMW. Furthermore, it will posture Marine aviation to be able to bridge emerging software technologies, such as the outputs of unit-level optimizing and forecasting tools, to the global logistics support chain. MALSP II will be able to rapidly and reliably respond to improved forecasts, the predictive signals, and the demand patterns originating on the flightline or from the onboard autonomic and prognostic sensors inside future aircraft platforms during flight. The relationship between modern platforms such as the Joint Strike Fighter and MALSP II appears to be a synergistic opportunity.
The Transformation Roadmap
The Aviation Logistics OAG has adopted a transformation roadmap with the main purpose of providing the leadership needed to cause the transition. The transformation roadmap is the mechanism that ties it all together-it connects actions to accelerate movement to better the future and enables us to balance the urgent needs of today with the seemingly distant requirements of tomorrow.
The transformation for aviation logistics is now underway. Fundamental changes to methods and policies are being designed and implemented primarily starting with the F/A-18 community. As Marine aviation operates within the naval aviation logistics system, new operating features of MALSP II are derived from the business transformation of the naval aviation logistics enterprise-called "AIRSpeed." Changes to thinking and previously unchallenged notions, such as those that drive our basic allowance computations and repair methodologies, are taught with the use of simulations.
The details of the roadmap address all aspects of doctrine, organization, training, materiel, leadership, personnel, and facilities and also chart out contingency and prerequisite plans to overcome obstacles, potential negative unintended consequences and side effects, and the risk of the transition to the future.
Leadership Is the Key to Success
While the Marine Corps' culture is characterized by a sense of deep pride in things that will not change, it has also been the Marine ethos to innovate and reshape when it makes us far better as warfighters. MALSP II is about better warfighting for today and the future.
In aviation logistics we have grown up in a culture where we have come to expect certain things. We expect that things will break. We expect far less than perfection in our logistics systems. The vision of MALSP II begins with changing such expectations.
There are certain to be difficult times ahead as we make this culture shift. The key to the success of MALSP II will be leadership. As Marines we have always taken greatest pride in our talent as leaders. With MALSP II transformation we have the opportunity once again to prove our salt.
Col Garant is currently serving as the Branch Head, Aviation Logistics Support Branch, Department of Aviation, HQMC. A 2003 graduate of the Industrial College of the Armed Forces, National Defense University, he previously served as the Commanding Officer, MALS-14, 2d MAW, Cherry Point.
MALSP II Pilot Tested in Combat Environment
Submitted by: 2nd Marine Aircraft Wing
Story Identification #: 2005121614351
Story by Cpl. Cullen J. Tiernan
AL ASAD, Iraq (Dec. 10, 2005) -- Marine Corps aviation is upgrading the way it does business logistically, while deployed in a combat environment.
While Cpl. Beve Crawford moves aviation supplies in the background, Cpl. David Badgerbouknight and Cpl. Drayton Wipper pose for a photograph inside a MALS-26 warehouse at Al Asad, Iraq, Dec. 10. All three Patriots work in the receiving section of the consumables management division. MALSP II will reduce the amount of space needed for storing aviation supplies while in a combat environment. Photo by: Cpl. Cullen J. Tiernan
The Patriots of Marine Aviation Logistics Squadron 26 are testing the Marine Aviation Logistics Support Program II pilot at Al Asad, Iraq. MALSP II will enable units to reduce the forward footprint and save money.
“Marine Aviation Logistics Support Program identifies exactly what we need to bring with us into a combat environment, including spare aviation parts, support equipment, mobile facilities and personnel,” said Maj. Jeffrey Bolduc, the aviation supply officer for MALS-26 and a Winslow, Maine, native. “MALSP II will help us improve on the process using new concepts to be more efficient and effective.”
The MALSP II pilot is based on principles of AIRSpeed. AIRSpeed is a business management strategy that focuses on eliminating waste and constraints to maximize overall production and integrating a disciplined approach for improving business performance by reducing variation.
“Here, we essentially support every type of aircraft in the Corps,” said Bolduc. “The MALSP II pilot allows us to be more effective with less. We are making significant progress in a combat environment.”
In MALSP II, the Patriots will stock a reduced amount of each line item, called a buffer, that is based on the amount of demand on a particular item during the time it takes to reliably replenish the item. The system is based on the forward operating base pulling what they need based on demand, as opposed to pushing allowances forward as the way business is currently conducted.
Marine Aviation Logistics Support Program II is set up with a parent base, an Expeditionary Support Base and a forward operating base. The MALSP II pilot parent base is MALS-14 at Marine Corps Air Station Cherry Point. The ESB is MALS-26 at Al Asad and the FOB is MALS-26 detachment at Al Taqaddum, Iraq. In the future, the ESB could be based out of a combat environment, in a neighboring country or on a ship.
“The MALSP II pilot enables us to identify the amount of time it takes us to move parts,” said Bolduc. “I know how long I will have to wait to replenish our stock. That knowledge allows us to free space and save money. We will make a much smaller footprint knowing we will be able to reliably replenish our stock in a short amount of time.”
The Patriots stock more than 19,000 parts to support aircraft in Iraq. MALSP II pilot started in April and focuses on 190 parts to test the concept.
“We’ve begun to support the FOB at Al Taqaddum using the buffer concepts,” said 1st Lt. Kate Wagner, the consumable management division officer-in-charge with MALS-26 and a Lancaster, Penn., native. “I am able to access and manage critical information on the Web-based software, and I am to learn the stock posture Al Taqaddum and our own system at Al Asad and act on deficiencies.”
Because of the efforts of all the Patriots involved, Bolduc said the squadron is gaining confidence that MALSP II will work.
“The work that Maj. Bolduc and his Marines are doing now is paving the way aviation logistics will be managed in the future,” said Lt. Col. Carmine Borrelli, the Patriots’ commanding officer.
AGI Named Seaport-e Vendor by U.S. Navy
The following article appeared in the June 2, 2005 issue of the New London Day, a daily newspaper based in New London, CT.
Two Local Firms Win Navy Contract
Two local firms - LBI Inc. of Groton, which specializes in reinforced plastics, and Applied Mathematics Inc. of the Gales Ferry section of Ledyard - were among 503 nationally to win contracts to provide support services to the Navy. A third Connecticut company, the Avraham Y. Goldratt Institute, also was selected under the omnibus contract. Under the terms of the contract, the companies will provide expertise in weapons systems acquisition and life-cycle support, including research and development, prototyping, acquisition logistics, modeling, test and evaluation trials, and engineering. The government expects to spent (sic) a maximum of $5.3 billion under the contracts over the next five years.
Below are the open courses currently scheduled. For updates to this schedule, please visit our website. For more information on individual classes or to register for programs in North America, please contact us at info@goldratt.com, 1.203.624.9026 or 1.800.394.GOAL. In the Asia Pacific region, please contact us at asiapacific@goldratt.com.
Introduction to TOC for Operations & Production
April 18-19
New Haven, CT, USA
TOC Supply Chain Expert Training Program - Technical Expert Training
February 27-March 3, March 6-10
Streetsboro, OH, USA
This is a dedicated program, with some open seats available.
April 3-7, April 17-21
Malaysia
Jonah Program®
March 6-10 (week 1), March 20-24 (week 2)
Malaysia
TOC Project Management Expert Training Program - Technical Expert Training
April 10-13, May 15-19
New Haven, CT, USA
AIRSpeed Group Completes Jonah Program®
The first AIRSpeed Jonah Program® was taught in Solomons, Maryland in September 2005. Fourteen AIRSpeed team members successfully completed the program, satisfying part of the Enterprise AIRSpeed Professional Development and Qualification requirement.
Pictured above in the front row are ATCS Steve Olszanowski, David Bergland (AGI), Brian Banks, Allen Giannerini, Denise Machala, ATC Jeff Rainwater, and AGI's Vice President of Implementation Services Suzan Bergland. In the back row are Luis Caballero, Mike Knott, Gary Gestwicki, Lt. Col. Brent Meeker, ADC Gary Hargrove, Reynaldo Pena, Chris Pratt, Walter Emick, and Robert Barrett.
Congratulations to all!
The following article appeared in Volume 62, Number 23 of Tester. Tester is an on-line newspaper of DCMilitary. Reprinted courtesy of Tester, copyright retained by Comprint Military Publications.
News and information for Naval Air Station Patuxent River personnel
NAVAIR Commander's National Award Ceremony Set
June 9, 2005
by Vicky Falcón
NAVAIR PUBLIC AFFAIRS OFFICE
The 2004 NAVAIR Commander's National Award winners have been selected and will be recognized by NAVAIR Commander Vice Adm. Wally Massenburg during the Commander's National Award ceremony June 21, from 2-3:30 p.m. in the atrium of the RADM William A. Moffett Building at Patuxent River.
The ceremony is open to all NAVAIR employees and will be broadcast live across all NAVAIR sites via video teleconferencing. The ceremony can also be viewed live throughout NAS Patuxent River on VISIONS Channel 12.
The Commander's National Award, the highest team award within the Naval Air Systems Command, recognizes the achievements of teams that have successfully supported the main goals of the command.
Winning teams receive a trophy and letter of commendation. First and second runners-up will also receive a letter of commendation and will be acknowledged during the June 21 award ceremony.
Fifty-four teams, representing more than 1100 individuals, submitted award nominations this year for five award categories that align with NAVAIR's business functions. Those categories were:
- Business Operations
- Logistics/Industrial
- Program Management
- Quality of Service
- Research, Development, Test & Evaluation and Technology
The winning team for the 2004 NAVAIR Commander's National Award in the category of Business Operations is the National Depot AIRSpeed Team. The first runner-up for this category is the Aging Aircraft Integrated Product Team, and the second runner-up is the Productivity Ratios Team.
The winning team from the Logistics/Industrial category is the Enterprise AIRSpeed Team. The first runner-up in the category is the Integrated In-Service Reliability Program Team, and the second runner-up in the Logistics/Industrial category is the T-45 F405 Engine Integrated Product Team.
The winning team in the category of Program Management is the Multi-Mission Maritime Aircraft (MMA) System Development and Demonstration Product Team. The first runner-up in this category is the Joint Stand-Off Weapons (JSOW) Block II Integrated Product Team, and the second runner up is the V-22 Joint Training Integrated Product Team.
In the category of Quality of Service, this year's winning team is the NATEC Operation Iraqi Freedom-II Deployment Team. The first runner-up is the P-3C ASW Improvement Program (AIP) Tactical Common Data Link Team. There was a tie for second runner-up in this category. The two teams who had an equal score are the NAVAIR Orlando Competency 7.8 Leadership Team and the Business and Financial Management Community Lean Pilot.
In the final category of Research, Development, Test & Evaluation and Technology, this year's winner of the Commander's National Award is the 4.0P NATOPS Team. The first runner-up is the National Airworthiness Interim Flight Clearance Team. The second runner-up is the Naval Aviation Technology Information Product Team.
Each of the nomination packages were judged by the following evaluation factors:
- Balancing current and future readiness
- Reducing our costs of doing business
- Improving agility
- Ensuring alignment
- Implementing Fleet-driven metrics
- Improving total workforce environment
The winning teams this year were chosen because they best epitomized NAVAIR's goals. The Commander's National Awards winners are on permanent display in the atrium of the Moffett Building at NAS Patuxent River.
For more information about the NAVAIR Commander's National Awards, contact the NAVAIR Headquarters Public Affairs Office at 301-757-1487.
Notes from the Editor-In-Chief:
Dr. Umesh Nagarkatte first approached AGI in 2001 about the potential of applying TOC to the subject of Student Retention. After understanding the crucial issues, rather than examine the subject from the “supply” side of the equation, we chose the “demand” side. Our experience has been that most academicians who become involved with TOC normally do so with the objective of teaching elements of TOC within their existing courses or curriculum. So we set about coming to a full understanding of Dr. Nagarkatte’s idea. What became clear is strategy that that went beyond the Mathematics Department, and required the direct support of Counseling and Administration. This was developed in detail during their Jonah Program® in 2002. MEC-CUNY’s application of TOC focuses on a systems level approach across the college designed with student performance at the core. I believe you’ll find it quite unique in this regard. Hopefully, their work will become a key enabler for the President’s vision, “Success, one student at a time.”
The Math Deparment, led by Dr Darius Movasseghi, recently gave a presentation of their work during the TOC for Education 8th International Conference in Seattle. Dr. Nagarkatte reported, “People felt our presentation was a pioneering one since we had used TOC to its fullest extent.” Dr. Nagarkatte has graciously agreed to make their presentation accessible via our web site. A summary of the conference presentation follows:
Title: Towards a TOC System-wide Solution to Improve Student Retention in the Department of Mathematics at an Urban College
Presenters: Dr. Umesh Nagarkatte, Professor of Mathematics, Dr. Darius Movasseghi, Professor of Mathematics and Department Chair, Dr. Joshua Berenbom, Associate Professor of Mathematics, Medgar Evers College of CUNY, 1650 Bedford Avenue Brooklyn, NY 11225
Abstract: Presenters discuss the use of TOC for improving student retention. UDEs originated from issues raised by students and faculty, concerning performance and retention. During the formal TOC training in January 2002, funded by a federal grant, the participants learned, while constructing the FRT, how to synchronize instruction, tutoring, and counseling to address these issues. With open discussions in the department, Departmental Guidelines were developed. Effective instruction and peer tutoring increased enrollments in mathematics courses. The College President having enthusiastically accepted the guidelines recommended a college-wide training of all counselors in TP tools for problem solving, decision making and conflict resolution.
Election of New Managing Partner of Avraham Y. Goldratt Institute, LLP Announced
At a meeting held December 16, 2005, the partners of AGI unanimously elected Dee Jacob to succeed Dale Houle as Managing Partner, commencing April 1, 2006. Dale's current term will expire March 31, 2006.
Dale has served in this capacity for nine years and is completing his third term. Under the partnership agreement, Managing Partners are permitted to serve a maximum of three three-year terms. Dale will continue to serve as CEO and President of Technology for AGI’s North America Group and continue as a Partner of AGI.
Dee joined AGI in 1991 as a Partner after working for Procter and Gamble for eighteen years. Dee has headed regions for AGI in South Africa, New Zealand, Australia and the US. She is currently Vice President of Finance and Administration for the North America Group, and will continue to maintain that responsibility.
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