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    lfm.mit.edu lfm.mit.edu Presentation Transcript

    • Large Scale Business Transformation: A Case Study from U.S. Army Logistics Thomas Gulledge, President, Enterprise Integration, Inc. Professor of Public Policy & Engineering, George Mason University
    • Outline:
      • Overview and Background
      • Enterprise Architecture Planning
      • Achieving the Logistics Vision
      • Integrated Schedule
      • Institutionalizing the Methodology
      • Cost and Benefit Data
      • Conclusions
    • Outline:
      • Overview and Background
      • Enterprise Architecture Planning
      • Achieving the Logistics Vision
      • Integrated Schedule
      • Institutionalizing the Methodology
      • Cost and Benefit Data
      • Conclusions
    • Guidance from the Executive in Charge
      • An Integrated Logistics Solution
      • A solution that aligns with OSD Policy Architectures
      • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
      • A solution that addresses technical data integration
      • A lean architecture that enables a common operating picture.
          • Minimizes interfaces
          • Provides for single set of supporting master data
          • Integrates existing solutions
    • Initial Tasks
      • High-level Operational Architecture . . . .
      • High-level Systems Architecture . . . . . .
      • High-level Integrated Schedule . . . . . . . .
      • High-level Cost & Benefit Data . . . . . . . .
      • Define a Methodology for Institutionalizing the Architecture . . . . . .
      Completed
      • 1
      • 1
      • 1
      • 1
      • 1
      Intensive 90 day Effort
    • Scope
      • Supply processes to include requisitioning, turn-in, loans
      • Maintenance management to include, at a minimum, induction of materiel into maintenance, maintenance (all levels – current and future), movement of materiel from maintenance activity to user/stock
      • Packaging, Crating, Handling and Distribution of materiel
      • Warehousing Functions associated with storage of materiel and readying it for movement
      • Associated Financial Transactions resulting from the requisitioning, turn-in, maintenance, storage and packaging, and distribution of materiel
      • Ensuring that Electronic Product Data (up front during design and production, as well as post-fielding) is captured and utilized in our logistics business systems. This includes engineering, configuration management data, and usage/failure factors, for all fielded materiel
      • Connectivity to Automatic Identification Technologies (AIT) to ensure that our logistics business systems accept and use the information to give us visibility of materiel, enhanced usage data, etc.
      • Connectivity to Joint Combat Service Support (CSS) systems, transportation, medical, finance, personnel, and legal
    • Project Team Membership (roles & responsibilities)
      • Dr. Gulledge (EII): Senior Lead and relationship with other Enterprise initiatives (FLE, FMEA, etc).
      • Greg Huntington (EII): Overall Enterprise Architecture / Customer Deliverables/Project Management.
      • Georg Simon (IDS Scheer): Business Value Chains & Process Architecture
      • Wael Hafez (IDS Scheer): Business Methods
      • Kris Pena (SAP): SAP functionality & standards to process architecture (current technology).
      • David Lincourt (SAP): SAP functionality & standards to process architecture (future technology).
      • Moses Irubor (SAP): Technical and Systems Architecture.
      • Bill Bain (Gartner): Governance / Cost and
      • Dave Walters (Gartner) Benefit Data
      • Pam Thompson Army Team (LAISO)
      • Forrest Malcomb (CASCOM)
      • Maurice McKinney (PEO EIS)
    • Chronology
      • Site Visits:
      • Ft. Hood, TX (4th ID)
      • TRANSCOM Scott Air Force Base, IL
      • LMP Program Office, NJ
      • LAISO, Redstone Arsenal, AL
      • CASCOM, Ft Lee VA
      • ARDEC Picatinny Arsenal, NJ
      Interviews: Transportation, Maintenance, Supply - LMP Program Office - GCSS A/T Program Office - Installation Management Agency (IMA) - Embedded Diagnostics & Prognostics - (EDAPS) Study Team -
      • Research:
      • Objective Force (OF)
      • Future Combat System (FCS)
      • Logistics LTTF Study
      • LMP contract & studies
      • GCSS-A/T contract & studies
      • Engineering Product Data (ePDM) Study
      In process Reviews OSD Alignment : Future Logistics Enterprise (FLE) - Financial Management Enterprise Architecture (FMEA) - Enterprise Integrated Data Environment (EIDE) - Service Data Management (SDM) - Analyzed: SAMS, SARSS, ULLS, ILAP, MTS, STANFINS, SAAS, PBUSE, etc. Mid-term Quality Review
    • Outline:
      • Overview and Background
      • Enterprise Architecture Planning
      • Achieving the Logistics Vision
      • Integrated Schedule
      • Institutionalizing the Methodology
      • Cost and Benefit Data
      • Conclusions
    • Enterprise Architecture Planning
      • Enterprise Architecture Planning is the process of defining and documenting a plan (i.e., a blueprint) for the use of information in support of the business processes of an organization.
      • Enterprise Architecture Planning also includes the plan for implementing against the requirements as documented in the architecture.
      • Enterprise Architecture Planning is a business responsibility and it is executed under the auspices of the business process executives within the organization.
      “ No one would dream of asking an architect to show up one day and just start building. Even the simplest construction projects include extensive design and planning stages that ensure success. These same steps are often by-passed in IT projects. But given the proper amount of time to plan and design a system correctly would dramatically improve success rates. Matthew Dill, Mandolfo Associates (Computer World, 5 May 2003, p.23)
    • Guiding Principles
      • The Army Logistics Architecture has a business process orientation, aligning with the Future Logistics Enterprise Policy
      • The Army Logistics Architecture provides a plan for business process integration across all of Army Logistics, including the National Army and the Field Army
      A Single Solution For Garrisoned & Deployed Forces
    • Outline:
      • Study Overview and Background
      • Enterprise Architecture Planning
      • Achieving the Logistics Vision
      • Integrated Schedule
      • Institutionalizing the Methodology
      • Cost and Benefit Data
      • Conclusions
    • Army Logistics Enterprise Strategic Vision: “ A fully integrated knowledge environment that builds, sustains, and generates Warfighting capability through a fully integrated logistics enterprise based upon collaborative planning, knowledge management, and best business practices.” We relate 5 key objectives to achieving this vision to the Army’s Logistics Architecture …
    • Achieving the Logistics Vision: 5 Key Objectives
      • An Integrated Logistics Solution
      • A solution that aligns with OSD Policy Architectures
      • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
      • A solution that addresses technical data integration
      • A lean architecture that enables a common operating picture
          • Minimizes interfaces
          • Provides for single set of supporting master data
          • Integrates existing solutions
      Meets Objective Force Characteristics!
      • Responsive
      • Deployable
      • Agile
      • Versatile
      • Lethal
      • Survivable
      • Sustainable
      • An integrated logistics solution
      • A solution that aligns with OSD Policy Architectures.
      • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.).
      • A solution that addresses technical data integration.
      • A lean architecture that enables a common operating picture.
          • Minimizes interfaces
          • Provides for a single set of supporting
          • master data
          • Integrates existing solutions
      Achieving the Logistics Vision: 5 Key Objectives Objective #1
    • Operational View (OV-1) (Single Army Logistics Enterprise) One set of integrated end-to-end business processes Links to more detailed models
    • Single Army Enterprise Operational View (Detailed View) A single set of integrated business processes! Achieves Objective #1
      • An integrated logistics solution
      • A solution that aligns with OSD Policy Architectures
      • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
      • A solution that addresses technical data integration
      • A lean architecture that enables a common operating picture
          • Minimizes Interfaces
          • Provides for Single Set of supporting
          • Master Data
          • Integrates existing Solutions
      Achieving the Logistics Vision: 5 Key Objectives Objective #2
    • Alignment With Policy Note: 1 - Total Life Cycle Systems Management (TLCSM) OSD Architecture Army Logistical Architecture
      • OSD Future Logistics Enterprise:
      • TLCSM (1)
      • End-to-End Customer Support
      • Enterprise Integration
      • Condition Based Maintenance +
      • Depot Partnering
      • Executive Agency
      R/3 R/3 LMP Initiative GCSS-A/T Initiative One Solution Manager … enabled by multiple software components … managed as one! Achieves Objective #2
      • An integrated logistics solution
      • A solution that aligns OSD Policy Architectures
      • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
      • A solution that addresses technical data integration
      • A a lean architecture that enables a common operating picture
          • Minimizes interfaces
          • Provides for a single set of supporting master data
          • Integrates existing solutions
      Achieving the Logistics Vision: 5 Key Objectives Objective #3
    • “ As-Is” Systems Mapped to “To-Be” Business Process Objects
    • Orderly Transition Achieves Objective #3 Critical component of legacy retirement planning Provides the capability to prioritize system replacements… ensures commercial software fit … ensures an orderly transition!
      • An integrated logistics solution
      • A solution that aligns with OSD policy architectures
      • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
      • A solution that addresses technical data integration
      • A lean architecture that enables a common operating picture
          • Minimizes interfaces
          • Provides for single set of supporting master data
          • Integrates existing solutions
      Achieving the Logistics Vision: 5 Key Objectives Objective #4
    • Product Lifecycle Management (PLM) Spans The Entire Logistical Architecture Management Non-SAP Solution means many complex Interfaces!
    • Product Lifecycle Management (PLM) within the same Solution 1 4 5 7 8 1. Asset turned in for Repair 4. View Asset Configuration and Drawings 5. Order Carcass from Field Supply 7. Order Carcass from National Supply 8. Shipping of Carcass from CONUS to Theatre 2 2. Create Work Order 3 3. Execute Work Order 6 6. Check Inventory 9 9. Shipping of Carcass to Supply Unit 10 10. Replace Carcass Part 12 11 11. Update Asset Configuration 12. Close Work Order Field Maintenance Field Supply National Supply Product Life-Cycle Management Transportation Achieves Objective #4 Tight integration with SAP PLM!
      • An integrated logistics solution
      • A solution that aligns with OSD Policy Architectures
      • A solution that supports critical decision making (i.e. strategic issues, prioritization, risk mitigation, etc.)
      • A solution that addresses technical data integration
      • A lean architecture that enables a common operating picture
          • Minimizes interfaces
          • Provides for single set of supporting master data
          • Integrates existing solutions
      Achieving the Logistics Vision: 5 Key Objectives Objective #5 a. b. & c.
    • Army Logistics Systems Architecture DB DB DB PLM Legacy Systems DBMS Knowledge Management/ Business Intelligence Master Data Management SAP R/3 mySAP Web Application Server Exchange Infrastructure Data Layer Applications Layer Process Layer
      • Integration Repository
      • Integration Directory
      • Integration Server
      • Integration Monitor
      Portal Infrastructure
      • Presentation Layer
      • Business Layer
      • Internet Com.Mgmt.
      • Integration Engine
      • Database Interface
      Business Process Management NetWeaver
      • User Management & Security
      • SCM
      • CRM
      • SRM
      Mobile Engine Server DB DB DB
      • Security
      • Operating systems/ Domain Mgmt.
      • Network
      • Hardware
      • Encryption
      Web Service The applications that enable the architecture One set of data with multiple databases One integrated solution! Achieves Objective #5 (c) Acquisition Maintenance Repair & Overhaul Disposal Personnel & Organization Force Planning Supply Management Command and Control (C2) Financial Management
    • Critical Attributes of the System Architecture
      • Optimized messaging across all existing SAP programs, including the Logistics Modernization Program, and the Global Combat Support Systems - Army
      • Master data control at the corporate level
      • A single point for interfacing (i.e., SAP XI enabled by NetWeaver) with all external constituents, including Defense Finance and Accounting Service (DFAS), the Defense Logistics Agency (DLA), weapon system program office, Original Equipment Manufacturers (OEM), other Services, etc.
      • Centralized repository management for all technical data, and
      • Complete feedback to the OEM or any Army level for prognostic and diagnostic data
      One integrated solution!
    • Outline:
      • Overview and Background
      • Enterprise Architecture Planning
      • Achieving the Logistics Vision
      • Integrated Schedule
      • Institutionalizing the Methodology
      • Cost and Benefit Data
      • Conclusions
    • Integrated Schedule The integrated Architecture Objective Force FY 04 FY 05 FY 06 FY 07 Strategies, Architectures and Standards Group (SASG) FY 08 Single Army Logistics Solution! Enterprise Integrated Data Environment (EIDE) V 3.0 Follows SAP Product Release Synchronize with PLM+ ver 1.0 Synchronize with PLM+ Accelerate 1st Deployment Logistics Modernization Program (LMP) Global Combat Support Systems Army / Tactical (GCSS-A/T) Product Lifecycle Management (PLM) + ver 1.0, 2.0, etc. … Upgrade & add Install Maint & Supply
    • Outline:
      • Overview and Background
      • Enterprise Architecture Planning
      • Achieving the Logistics Vision
      • Integrated Schedule
      • Institutionalizing the Methodology
      • Cost and Benefit Data
      • Conclusions
    • Institutionalizing the Logistics Enterprise Integration Methodology
      • Three critical success factors consistently make or break enterprise initiatives
          • The Right Governance Model
          • Organizational Change Management
          • The Architecture Team
      “ Only an enterprise with the discipline to address outdated practices will build a successful architecture and the core business strategies that depend on it.” –
    • Outline:
      • Overview and Background
      • Enterprise Architecture Planning
      • Achieving the Logistics Vision
      • Integrated Schedule
      • Institutionalizing the Methodology
      • Cost and Benefit Data
      • Conclusions
    • Cost / Benefit Data … Total Cost of Ownership (TCO) for Centralized vs. Decentralized ERP Bottom-line: Decentralized Solutions Have Higher Total Cost Of Ownership!
      • Centralized ERP TCO does NOT imply a single instance (or project) of an enterprise solution
      • It does imply a consolidated enterprise-wide architecture that will accommodate all Army Logistical solutions
      • The recommended goal of “Controlled Redundancy” assures that consolidation supports the end-to-end Army Logistics business processes
      Cost / Benefit Data … A Strategies, Architectures, and Standards Group (SASG) ensures that the proper design, maintenance, and execution to the enterprise-wide architecture occurs!
    • Outline:
      • Overview and Background
      • Enterprise Architecture Planning
      • Achieving the Logistics Vision
      • Integrated Schedule
      • Institutionalizing the Methodology
      • Cost and Benefit Data
      • Conclusions
    • Conclusions
      • The solution was approved and fully funded in 2005.
      • It is now in the DoD budget in a line item that is called the Single Army Logistics Enterprise (SALE).
      • The SALE struggles, like all modernization initiatives in today’s environment.