NAVAL LOGISTICS INSPECTORATE LATEST PROGRAMMES, SUCCESSES AND CHALLENGES FACING LOGISTICS  IN THE ITALIAN NAVY Captain Ale...
<ul><li>The Navy Chief of Staff is responsible for the Naval Instrument:  </li></ul><ul><li>Operational control through th...
TARANTO AUGUSTA LA SPEZIA 2^ LINE SHIPS 1^ LINE SHIPS 100% 0% 50% AUXILIARY SHIPS BRINDISI Other bases 63 38 34 13 7 EVOLU...
OVERVIEW OF THE LOGISTIC ORGANIZATION NAVISPELOG <ul><li>Naval Logistic Support and Lighthouses Inspectorate regulates and...
LA SPEZIA CIMA AULLA MARINARSEN SP MARIPERMAN MARIMISSILI MARICEGESCO MARINALLES MARITECNOFARI DIREMAG  SP LIVORNO MARITEL...
INTERNATIONAL COOPERATION SLAT JSF U-212 A PAAMS VULCANO EH-101 MU-90 NH-90 FREMM HORIZON
<ul><li>PAAMS : the ISS will be managed by OCCAR </li></ul><ul><li>U212A : the MOU has been signed for common support (Com...
<ul><li>PICTURE </li></ul><ul><li>continuous evolution of operational context  </li></ul><ul><li>traditional standard not ...
<ul><li>Complex legal and administrative rules </li></ul><ul><ul><li>don’t allow a thorough analysis of efficiency and pro...
<ul><li>Reduction of funds </li></ul><ul><ul><li>Reduction of effectiveness level and operational availability  </li></ul>...
TREND OF FINANCIAL RESOURCES IN SERVICE SECTOR M€ STRUCTURAL LIMITS:   REDUCTION OF AVAILABLE BUDGET MAIN PROBLEMS OF LOGI...
FINANCIAL YEAR 2008 MAIN PROBLEMS OF LOGISTICS SUPPORT STRUCTURAL LIMITS:   REDUCTION OF AVAILABLE BUDGET
<ul><li>Number and skill of personnel: not always in line with present functions </li></ul>STRUCTURAL LIMITS STRUCTURAL LI...
ARSENALS CIVILIAN PERSONNEL SITUATION MAIN PROBLEMS OF LOGISTICS SUPPORT
<ul><li>“ Andreatta” reform primary guidelines: </li></ul><ul><li>Structural and organizational changes included the creat...
INITIATIVES SEPTEMBER 2007: APPOINTMENT OF C.A.I.D.  (DEFENCE INDUSTRIES AREA COMMITTEE) REPORT DELIVERED ON 30 JUNE 2008 ...
<ul><li>Infrastructures </li></ul><ul><li>need to restructure and rationalize. Financing based on exploitation of Defence ...
<ul><li>Infrastructures </li></ul><ul><li>Select available assets  </li></ul><ul><li>Upgrade needed facilities (Piano “BRI...
INITIAL PLAN OF 400 M€: NO RESULTS  Infrastructures OTHER PLAN IN 2004, “MINIMAL” ONE, ABOUT 150 M€ PER 5 YEARS : NO RESUL...
Inspectorate organization <ul><li>Innovative studies have been carried out in order to realize a structure capable to perf...
<ul><li>Treasuring internal resources </li></ul><ul><ul><li>New models of governance  for arsenals </li></ul></ul><ul><li>...
<ul><li>Depot stocks  (reorganise and improve) </li></ul><ul><li>On-board Stocks  (only safety and navigability)  </li></u...
<ul><li>Configuration management  for Systems/Equipments with the following constraints : </li></ul><ul><ul><li>High cost ...
STUDIES IN PROGRESS IN COLLABORATION WITH INDUSTRY, NAMSA, OCCAR TO ADAPT THE CENTRE TO FUTURE NEEDS AND MAKE IT A  EUROPE...
CHALLENGES <ul><li>AREAS TO IMPROVE </li></ul><ul><li>Info-logistic system and standardization </li></ul><ul><li>New const...
CHALLENGES AREAS TO IMPROVE: INFO-LOGISTIC SYSTEM <ul><li>ARSENALS & MATERIALS MANAGEMENT </li></ul><ul><ul><li>Maintenanc...
AECMA 1000 D NEW DATA MODEL FOR LOGISTIC SUPPORT ANALYSIS =  NATO Product Data Model NH – 90 PROGRAMME DATA BASE MIL - STD...
CHALLENGES AREAS TO IMPROVE: NEW CONSTRUCTIONS <ul><li>Involvement of the Logistic Inspectorate since the very beginning o...
CHALLENGES <ul><li>The spread of logistic culture is important to create innovative behaviour for: </li></ul><ul><li>desig...
LOCAL  INDUSTRY NATIONAL  INDUSTRY ARSENALS CHALLENGES GREATER INDUSTRIAL INVOLVEMENT <ul><li>Procurement phase : definiti...
CHALLENGES <ul><li>TECHNOLOGICAL   DEVELOPMENT   </li></ul>GREATER INDUSTRIAL INVOLVEMENT <ul><li>INNOVATIVE PROJECTUALITY...
CHALLANGES <ul><li>Needs </li></ul><ul><li>Supportability assessment (Ship, System, Equipment)  </li></ul><ul><li>Logistic...
CHALLENGES ARMY  LOGISTIC COMMAND AIR FORCE LOGISTIC COMMAND NAVY LOGISTIC INSPECOTORATE CARABINIERI FORCE  LOGISTIC INSPE...
CHALLENGES AREAS TO IMPROVE: International Collaboration <ul><li>Working international: </li></ul><ul><li>time consuming <...
MAINTENANCE  CORE BUSINESS EFFECTIVE  INSPECTORATE  IMPROVEMENT EFFECTIVE DEPENDING  BODIES  IMPROVEMENT GREATER  INVOLVEM...
CONCLUSIONS We seek interoperability by means of high technology and integrated logistics support.
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PROGRAMMES, SUCCESSES AND CHALLENGES FACING LOGISTICS IN THE ITALIAN NAVY

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  • Ladies and Gentlemen good morning. I am Captain Alessio CARTA , currently in charge as Chief of Internal General Business Office and Technical Assistant of the Inspector of the Logistic Support and Lighthouses Inspectorate at the Italian Navy Staff. In my previous job, I was in charge of the warship department in the Horizon Program Office in Paris. Indeed, I am particularly honoured for being here today, in this prestigious conference, to address such a distinguished audience about an overview of the Italian Navy’s effort focused on logistic support.
  • The Navy Chief of Staff is responsible of ALL activities related to logistics, by means of Inspectorates: Navispelog is for logistic support.
  • The slide shows the order of magnitude of THE CUSTOMERS of our Logistic Support System. 
  • Depending Bodies are deployed on the national territory, mainly in three areas: La Spezia, Taranto and Augusta.
  • I would like to mention that almost all of our programs and projects are developed in the frame of bilateral and multinational cooperation: ships, submarines, aircrafts, helicopters, guns, missiles and torpedoes.
  • In particular, the main programs whose logistic support will be managed in cooperation are:
  • The slide shows, synthetically, the actual picture of reference, in other terms “the waters we are actually navigating”, and therefore the reasons why we need to improve our Logistic Support System. The main points of weakness , that can be considered as “ structural limits ” typical of a governmental organization that has to carry out an operational activity in a framework of industrial nature are: the legislation context, the reduction of available budget, the shortage of personnel. Such structural limits affect mainly our arsenals, where we have the core business of Naval Instrument maintenance. We aim to overcome this weakness in order to face the increase in operational activity requested to our ships, implementing an industrial-like organization to perform maintenance, management of materials and logistic disciplines.
  • With regard to the regulation RAD , recently introduced, we have prepared the Operational Instructions for arsenals. Such activities should be further developed and optimized by pursuing the goal of maximum possible simplification of procedures: a special working group has been set up. Administrative tools , in accordance with the criteria of transparency and fairness, are paramount to have an autonomous industrial support, truly effective, real accountability of its activities and its achievements. For this reason we are implementing: an improvement in the computerized logistics system; a serious &amp;quot;change management“; a computerized interface for acquisition and payment.
  • All this is to be accomplished in a frame of reduction of available budget that affects combat readiness, replenishment of stocks, training of personnel. Furthermore expenses distribution is unbalanced at present. We aim at re-balance the resources distribution in order to assign: 50% to personnel, 25% to in-service support and 25% to acquisition.
  • This slide shows the reduction, in time, of financial resources allocated to the in-service sector: at present stable around 300 million euros per year.
  • Such reduction revealed itself as critical in the last financial year, in which the Navy was funded a total of 2.648 M€ divided as shown in this slide.
  • For what concerns personnel, the trend is to recover in the fields of turn-over, professionalism, training, incentives and career profile.
  • But Governmental courses and competitions that have taken place up to now and extraordinary employments are not enough to fulfil the turn-over of retired civilian personnel so that effective organic force is decreasing.
  • This way there is a need to reconsider our logistic support system. It is worth to mention that a few years ago, in the period between ‘96 and ‘98, the Ministry of Defence Andreatta started up a reform, because arsenals situation displayed a progressive and serious degradation, in spite of efforts and activities done in the past. Such reform was the first real and consistent attempt to create a Defence Industrial Area based on arsenals, following economy and effectiveness criterions and focused, from the organizational point of view, on the core business: the in-service maintenance of ships and their systems and equipment. Moreover, it envisaged restructuring human resources professional profiles, always focusing on the maintenance core business. Finally, the incomplete application of the reforma and insufficiency of funds leaded the arsenal system to a crisis situation that has now reached the political level. SIGA IS BASED ON THE BUSINESS SOFTWARE SAP (GERMANY) SAP: “SYSTEMS, APPLICATIONS and PRODUCTS in data processing”
  • For this reason a number of initiatives have been started aiming to restructure the whole sector. Improving Depending Bodies efficiency is an issue that has been studied by the Inspectorate: results and recommendations have been brought to the Navy Top Level. For the importance and political relevance of the issues, such recommendations have been forwarded also to the political responsible for defence. The Ministry of Defence decided that the problem should be studied jointly and first appointed a Joint Working Group; then he appointed a special committee (Industries Defence Area Committee - CAID ) for the identification and development of possible solutions. Finally, in april 2009, the new Ministry appointed the Navy Arsenals Restructuring Committee (CRAMM). The CRAMM proposals are under evaluation. In the mean time, a series of activities have been started to increase Inspectorate and Depending Bodies efficiency, oriented to an industrial improvement which is only possible with a substantial change of the current organizational and legal-related model; such model is linked to the areas of infrastructures , personnel and, in general, related functioning rules .
  • Here are the final results of CAID analisys
  • the main action items to implement CAID recommendations are:
  • A comprehensive plan of reorganization and infrastructure improvement has been prepared to preserve in the future working capability of arsenals, highly compromised in recent years by the decay of infrastructure assets, both for its obsolescence, and for lack of funding. The current plan, also, involves a streamlining of working that are focused and aimed at maintenance of Naval Units, through the creation / revision of the structures in modern multifunctional workshops With great effort, through a global monitoring coordinated by Inspectorate, the smooth flow of activity is proceeding, although in large part under responsibility of other services of Defence.
  • Activities have been carried out in order to improve the Inspectorate effectiveness “ to do better, at a lower price and effort ”. A study has been performed for a better internal organization, based on “processes analysis”, different from the traditional “per function” vision, in order to define a new structure of NAVISPELOG. The main output of the study are: a uniform and comprehensive approach to all issues of the arsenals (infrastructures, equipments / facilities, personnel, internal organization, etc.); the creation of a process of &amp;quot;engineering maintenance&amp;quot;, deemed essential in view of the complexity of new systems and equipments; the creation of a process of “Planning and Control&amp;quot; of working carried out by the arsenals, both on Ships not operational for maintenance and on combat ready Ships; the creation of the processes of “Measurement and Analysis” and “Quality of Product and Process”, as &amp;quot; everything that is measurable could be improved” .
  • For what concerns the core business, it was highlighted that preventative maintenance were too expensive and did not take into account feedbacks from the field. In practice, it is necessary to seek suitable solutions to minimize, as much as possible, recurring costs associated with the Logistic Support System.
  • Spare parts management has been focused on:
  • Logistic disciplines are used to improve configuration management and feedback form the field.
  • There are also real possibilities for rationalization and enhancement of Technical Centres. There are initiatives aimed to exploit industrial capabilities of these Centres even beyond the military context, in the commercial field . One example, among many, is the Advanced ammunition joint centre, but areas of excellence could be identified within each Centre in the aim of treasuring internal resources.
  • Italian Navy is facing several challenges concerning the logistic support. In particular, further improvement will be focused on the three main areas shown on the slide. Leggere
  • The Inspectorate has been Leader for the continuation and development of the info-logistic system, that is considered essential for optimal functioning of arsenals. Related projects are: SIGAM, dedicated to naval maintenance, and SI_Maricegesco / Diremag for materials management. It is also in progress the design of a new system for our Centre for Configuration Control (CSSN), named SIGA_CSSN. This is the first time that an ERP (Enterprise Resource Planning), based on SAP software solutions, is used to manage, according to &amp;quot;best practice“, activities of an industrial public administration of the Navy.
  • Maximum standardization is necessary for integration and interoperability in multinational and national Defence. It includes the study, experimentation and the simplification of technical and administrative functions and procurement, inserted in a context of innovative projects, to consent optimization of Life Cycle Cost, or &amp;quot; produce once, use many times &amp;quot;, instead of “trivial” acquisition of out-sourcing at the lowest cost. In this slide you can see the evolution of standard merge. In Italy, it has been recently approved the new regulation “NIILS (Joint Regulation for ILS)”.
  • Inspectorate will continue to pursue greater participation in the definition and design of logistical support, in the phase of entry into service and in the warranty period. All this represents a concrete process of homogenization among various logistic programmes (Horizon Program, Submarine U212, Carriers Cavour, NUMC / NUPA, FSAF / PAAMS, MU90).
  • A &amp;quot; Joint Logistics School &amp;quot; has been recently established in order to ensure a common knowledge and professional experiences in the logistic field.
  • The improvement of logistical support is also pursuable by following a policy of involving the National Defence Industry. The industrial component, itself, is represented mainly by clusters, producing and supplying systems / equipments, but also by the local Industry close to the naval bases. The presence of Industry in managing the support, however, should not result in a total activity out-sourcing, because it can not be put in a dual capacity as &amp;quot; controlled and controller .&amp;quot; Contracts are always “opportunity for business”, in industry point of view, and therefore the Navy must keep in house capabilities of analysis and assessment of the processes.
  • The technological evolution leads to the concept of an innovative project. This project aims to shift “ from production and development organization to life cycle management ”. In particular, it is intended to acquire from Private Industry not only hardware but also “performances” through new models of contracts (Temporary Global Support, Service Level Agreement, Operational Availability): this requires a significant change in technical and commercial relations with the Private Industry. The problem that we already experienced in this kind of approach is that there are “high risks”, that must be mitigated.
  • Temporary in-service support is an improvement of ILS within development-production phase and in-service phase. During the Temporary phase Navy and Industry are working together, respecting a collaboration model to: Supportability assessment (Ship, System, Equipment); Logistics Support System assessment (processes/procedure, organization, equipments, technical publications, materials, infrastructures, etc.); Treasuring feedback into Logistics Support System; Fleet availability. In synthesis, Temporary Global Support activities aim to maintain operational conditions, by a Logistics Support System “field proven”, where costs and results are balanced.
  • In order to optimize the resources, collaboration within the armed forces is mandatory, in accordance with the last “Joint Logistic Directive” of Chief of Staff of Defence. (PADLI: Piano Attuativo della Direttiva Logistica Interforze)
  • As already illustrated, IT Navy is involved in many international collaboration for the procurement and In Service Support of systems. It must be said that for a full international collaboration, by a technical point of view, many problems have to be considered: working internationally is often time consuming, national practices and rules are not easy to change and national industry interests have to be considered. However, the experiences made up to now, confirm that this is the way to proceed, in order to achieve the highest level of efficiency in carrying out our duty, always more international and cooperative by operational point of view.
  • In summary, a strategy has been consolidated for the Naval Support. Much work has been carried out but it is not completed. The problems to overcome and the constrains to be considered are: funds availability; qualifications and number of the personnel employed; persistency of “rules of game&amp;quot; substantially unfit to manage industrial activities. Therefore, the Inspectorate strategy is focused on : the concentration on core business-maintenance; the launch of a new organization; strong industrial involvement; synergies, nationally and internationally.
  • PROGRAMMES, SUCCESSES AND CHALLENGES FACING LOGISTICS IN THE ITALIAN NAVY

    1. 1. NAVAL LOGISTICS INSPECTORATE LATEST PROGRAMMES, SUCCESSES AND CHALLENGES FACING LOGISTICS IN THE ITALIAN NAVY Captain Alessio CARTA Chief of Internal General Business Office and Technical Assistant of the Inspector of the Logistic Support and Lighthouses Inspectorate
    2. 2. <ul><li>The Navy Chief of Staff is responsible for the Naval Instrument: </li></ul><ul><li>Operational control through the Chief Command of the Fleet (CINCNAV) </li></ul><ul><li>Technical/logistical/administrative control through Inspectorates: NAVISPELOG for logistic support </li></ul>OVERVIEW OF THE LOGISTIC ORGANIZATION
    3. 3. TARANTO AUGUSTA LA SPEZIA 2^ LINE SHIPS 1^ LINE SHIPS 100% 0% 50% AUXILIARY SHIPS BRINDISI Other bases 63 38 34 13 7 EVOLUTION OF LOGISTICS SUPPORT SYSTEM OUR CUSTOMERS THE FLEET 155 SHIPS 275 kTons 1^ LINE SHIPS and SUBMARINES 2^ LINE SHIPS 19 45 91 AUXILIARY SHIPS
    4. 4. OVERVIEW OF THE LOGISTIC ORGANIZATION NAVISPELOG <ul><li>Naval Logistic Support and Lighthouses Inspectorate regulates and directs: </li></ul><ul><ul><li>Maintenance programmes of Naval Units </li></ul></ul><ul><ul><li>Acquisition and management of materials and stocks </li></ul></ul><ul><ul><li>Management and preparation of ammunitions </li></ul></ul><ul><ul><li>Up-keeping of infrastructures </li></ul></ul><ul><ul><li>Acquisition of working-means </li></ul></ul><ul><ul><li>Tests and Trials on new ships </li></ul></ul><ul><ul><li>Management of lighthouses and maritime signalling </li></ul></ul>
    5. 5. LA SPEZIA CIMA AULLA MARINARSEN SP MARIPERMAN MARIMISSILI MARICEGESCO MARINALLES MARITECNOFARI DIREMAG SP LIVORNO MARITELERADAR ROMA NAVISPELOG • BRINDISI MARINARSEN BR (Marinarsen Taranto Section) TARANTO AUGUSTA MARINARSEN AUGUSTA MARIPERMAN UDG DIREMAG AUGUSTA (OFF. MSL. CAVA SORCIARO) MARINARSEN TA DIREMAG TA (MARIMUNI TA) CISAM S.PIERO A GRADO OVERVIEW OF THE LOGISTIC ORGANIZATION
    6. 6. INTERNATIONAL COOPERATION SLAT JSF U-212 A PAAMS VULCANO EH-101 MU-90 NH-90 FREMM HORIZON
    7. 7. <ul><li>PAAMS : the ISS will be managed by OCCAR </li></ul><ul><li>U212A : the MOU has been signed for common support (Common Source Data Base, spare parts, configuration management) </li></ul><ul><li>Horizon Frigates : discussion is in due course to establish a Common Support Collaboration </li></ul><ul><li>FREMM Frigates : program under OCCAR management and the contract already include the ISS </li></ul>INTERNATIONAL COLLABORATION
    8. 8. <ul><li>PICTURE </li></ul><ul><li>continuous evolution of operational context </li></ul><ul><li>traditional standard not up to date nor sustainable for STRUCTURAL LIMITS: </li></ul><ul><ul><li>Laws and regulations </li></ul></ul><ul><ul><li>Reduction of available budget </li></ul></ul><ul><ul><li>Personnel </li></ul></ul><ul><li>GOALS </li></ul><ul><li>Operational activity increased </li></ul><ul><li>Framework of industrial nature (EVOLUTION): </li></ul><ul><ul><li>Organization </li></ul></ul><ul><ul><li>Maintenance (core-business) </li></ul></ul><ul><ul><li>Spare parts management </li></ul></ul><ul><ul><li>Logistics disciplines </li></ul></ul>THE LOGISTICS SUPPORT SYSTEM
    9. 9. <ul><li>Complex legal and administrative rules </li></ul><ul><ul><li>don’t allow a thorough analysis of efficiency and productivity </li></ul></ul><ul><ul><li>don’t allow to employ personnel in an effective way </li></ul></ul><ul><li>Fragmented organization </li></ul><ul><ul><li>Articulated in many hierarchical levels and mainly bureaucratic </li></ul></ul><ul><ul><li>Changes are not easy to implement </li></ul></ul>STRUCTURAL LIMITS STRUCTURAL LIMITS: LAWS AND REGULATIONS <ul><li>RAD (recently introduced) </li></ul><ul><ul><li>Operational instructions for arsenals </li></ul></ul><ul><ul><li>Simplification of procedures </li></ul></ul><ul><li>ADMINISTRATIVE TOOLS </li></ul><ul><li>According to civil code </li></ul><ul><li>According to rules of effectiveness and accountability that belong to the contracting and industrial world: </li></ul><ul><ul><li>Implementing Info-logistic system </li></ul></ul><ul><ul><li>Change management </li></ul></ul><ul><ul><li>Automatic interface for acquisition and payment </li></ul></ul>MAIN PROBLEMS OF LOGISTICS SUPPORT
    10. 10. <ul><li>Reduction of funds </li></ul><ul><ul><li>Reduction of effectiveness level and operational availability </li></ul></ul><ul><ul><li>Postponement or replacement of major overhauls with less extensive maintenance works (priority to ensure obligations by law: expiry dates, safety and habitability of the Ships and safeguard of the environment) </li></ul></ul><ul><ul><li>Reduction of stocks: materials, fuels and equipment </li></ul></ul><ul><ul><li>Reduction of outsourcing services </li></ul></ul><ul><ul><li>Reduction of training levels and operational personnel readiness </li></ul></ul><ul><ul><li>Negative impact on personnel life and enthusiasm (as transfers, services, extra-duty) </li></ul></ul><ul><li>Budget proportion is unbalanced (in service support, acquisition, personnel) </li></ul>STRUCTURAL LIMITS STRUCTURAL LIMITS: REDUCTION OF AVAILABLE BUDGET <ul><li>Reorganise expenses </li></ul><ul><li>Re - balancing resources distribution </li></ul><ul><li>GOAL VALUES </li></ul><ul><ul><li>Personnel: 50% </li></ul></ul><ul><ul><li>In service: 25% </li></ul></ul><ul><ul><li>Acquisition: 25% </li></ul></ul>MAIN PROBLEMS OF LOGISTICS SUPPORT
    11. 11. TREND OF FINANCIAL RESOURCES IN SERVICE SECTOR M€ STRUCTURAL LIMITS: REDUCTION OF AVAILABLE BUDGET MAIN PROBLEMS OF LOGISTICS SUPPORT
    12. 12. FINANCIAL YEAR 2008 MAIN PROBLEMS OF LOGISTICS SUPPORT STRUCTURAL LIMITS: REDUCTION OF AVAILABLE BUDGET
    13. 13. <ul><li>Number and skill of personnel: not always in line with present functions </li></ul>STRUCTURAL LIMITS STRUCTURAL LIMITS: PERSONNEL <ul><li>Requalification for the tasks to perform </li></ul><ul><li>Incentive </li></ul><ul><li>Motivation </li></ul><ul><li>Professionalism </li></ul><ul><li>Turn over </li></ul>MAIN PROBLEMS OF LOGISTICS SUPPORT
    14. 14. ARSENALS CIVILIAN PERSONNEL SITUATION MAIN PROBLEMS OF LOGISTICS SUPPORT
    15. 15. <ul><li>“ Andreatta” reform primary guidelines: </li></ul><ul><li>Structural and organizational changes included the creation of Works and Services Direction with insertion of arsenal support functions; </li></ul><ul><li>Distinction between “programmed activities” (involving industrial effectiveness) and “direct support” to Ships (involving readiness in spite of economy management) </li></ul><ul><li>Set up a Data Processing System for Arsenal and Logistics (SIGA) </li></ul>ORGANIZATION: THE START UP Reform has never been fully implemented It postulated full manning in new organization charts EVOLUTION OF LOGISTICS SUPPORT SYSTEM
    16. 16. INITIATIVES SEPTEMBER 2007: APPOINTMENT OF C.A.I.D. (DEFENCE INDUSTRIES AREA COMMITTEE) REPORT DELIVERED ON 30 JUNE 2008  DECEMBER 2006: PROBLEM RAISED TO DEFENCE MINISTRY LEVEL APPOINTMENT OF JOINT WORKING GROUP COORDINATED BY NAVY 2005: INSPECTORATE STUDY ABOUT REGULATION CHANGES ADMINISTRATIVE CHANGES NEW ORGANIZATION INSPECTORATE AND ARSENALS EVOLUTION STUDIES APRIL 2009: APPOINTMENT OF C.R.A.M.M. (NAVY ARSENALS RESTRUCTURING COMMITTEE) PROPOSAL FINALIZED ON JULY 2009 EVOLUTION OF LOGISTICS SUPPORT SYSTEM
    17. 17. <ul><li>Infrastructures </li></ul><ul><li>need to restructure and rationalize. Financing based on exploitation of Defence areas and infrastructures (according to art. 14 bis L. 133). </li></ul><ul><li>Personnel </li></ul><ul><li>Excess of personnel in the indirect area; </li></ul><ul><li>need to transfer personnel from indirect activities to the production area; </li></ul><ul><li>Professional alignment, coherent with industrial reality and weapon systems technological complexity. </li></ul>EVOLUTION OF LOGISTICS SUPPORT SYSTEM CAID MAIN RECOMMENDATIONS
    18. 18. <ul><li>Infrastructures </li></ul><ul><li>Select available assets </li></ul><ul><li>Upgrade needed facilities (Piano “BRIN”) </li></ul><ul><li>Increase the value of not needed assets </li></ul><ul><li>Personnel </li></ul><ul><li>training based on new systems </li></ul><ul><li>selective review of the choices “make or buy” </li></ul><ul><li>need to seek more activities fully exploit available potential </li></ul><ul><li>“ selective” employment plan </li></ul><ul><li>Optimal sizing: result to be obtained gradually </li></ul>CAID ACTIVITIES: ACTION ITEMS EVOLUTION OF LOGISTICS SUPPORT SYSTEM
    19. 19. INITIAL PLAN OF 400 M€: NO RESULTS Infrastructures OTHER PLAN IN 2004, “MINIMAL” ONE, ABOUT 150 M€ PER 5 YEARS : NO RESULTS <ul><li>NEW PLAN (BRIN) PROPOSED BY THE NAVY: </li></ul><ul><li>ACCORDING TO C.A.I.D. RECOMMENDATIONS </li></ul><ul><li>CONSISTENT WITH REQUIREMENTS </li></ul>UPGRADE OF NEEDED FACILITIES (PIANO “BRIN”) EVOLUTION OF LOGISTICS SUPPORT SYSTEM
    20. 20. Inspectorate organization <ul><li>Innovative studies have been carried out in order to realize a structure capable to perform an industrial approach by means of: </li></ul><ul><li>comprehensive approach to all issues of the arsenals (infrastructures, facilities, personnel, internal organization, ..) </li></ul><ul><li>process of “engineering maintenance” </li></ul><ul><li>procedure of “planning and control” of work </li></ul><ul><li>procedure of “measurement and analysis” and “quality of product and process” </li></ul>“ everything that is measureble could be managed and improved” EVOLUTION OF LOGISTICS SUPPORT SYSTEM INSPECTORATE AND ARSENALS EVOLUTION STUDIES
    21. 21. <ul><li>Treasuring internal resources </li></ul><ul><ul><li>New models of governance for arsenals </li></ul></ul><ul><li>Industry only for modern equipment with high technological level </li></ul><ul><ul><li>On the job training </li></ul></ul><ul><li>Treasuring logistics studies and feedbacks (from the field) </li></ul><ul><li>Mock-ups management (resolution of complex failures, test site for system changes, training) </li></ul><ul><li>Design based on prognostic and proactive maintenance </li></ul>MAINTENANCE (CORE BUSINESS) <ul><li>Wide up-keep cycle: </li></ul><ul><ul><li>maintenance plans were too conservative and not experimented in the field </li></ul></ul><ul><ul><li>reliability not experimented in the field </li></ul></ul><ul><ul><li>wide maintenance works </li></ul></ul><ul><li>Improve up-keep cycle </li></ul>EVOLUTION OF LOGISTICS SUPPORT SYSTEM
    22. 22. <ul><li>Depot stocks (reorganise and improve) </li></ul><ul><li>On-board Stocks (only safety and navigability) </li></ul><ul><li>Operational kits (complex international exercise and real operations) </li></ul><ul><li>Restart kits (programmed maintenance) </li></ul><ul><li>List of Equipment (LDP) </li></ul><ul><ul><li>Logistic studies </li></ul></ul><ul><ul><li>Best practices </li></ul></ul><ul><ul><li>Feedbacks </li></ul></ul><ul><li>Common Stocks (joint and international programmes) </li></ul><ul><ul><li>Similarities </li></ul></ul><ul><ul><li>Insurance Long Lead Items </li></ul></ul>SPARE PARTS MANAGEMENT EVOLUTION OF LOGISTICS SUPPORT SYSTEM
    23. 23. <ul><li>Configuration management for Systems/Equipments with the following constraints : </li></ul><ul><ul><li>High cost of acquisition </li></ul></ul><ul><ul><li>High operational value </li></ul></ul><ul><ul><li>Wide life cycle (at least 10-15 years) </li></ul></ul><ul><ul><li>Source from international cooperation </li></ul></ul><ul><ul><li>Large population </li></ul></ul><ul><li>Feedback management </li></ul>LOGISTIC DISCIPLINES <ul><li>Verifying maintenance </li></ul><ul><li>Sizing spare parts </li></ul><ul><li>Assessment of the figures of worth </li></ul><ul><li>Deteriorated assets management </li></ul><ul><li>Management savings </li></ul>EVOLUTION OF LOGISTICS SUPPORT SYSTEM
    24. 24. STUDIES IN PROGRESS IN COLLABORATION WITH INDUSTRY, NAMSA, OCCAR TO ADAPT THE CENTRE TO FUTURE NEEDS AND MAKE IT A EUROPEAN CENTRE OF EXCELLENCE <ul><li>Capabilities of the Centres made available in the commercial field </li></ul><ul><li>Changes in the rules of governance of the arsenals </li></ul><ul><li>Partnership with Industry </li></ul><ul><ul><li>Public Economic </li></ul></ul><ul><ul><li>Agency </li></ul></ul><ul><ul><li>Others … </li></ul></ul>TREASURING INTERNAL RESOURCES Advanced Ammunition Joint Centre (CIMA) EVOLUTION OF LOGISTICS SUPPORT SYSTEM
    25. 25. CHALLENGES <ul><li>AREAS TO IMPROVE </li></ul><ul><li>Info-logistic system and standardization </li></ul><ul><li>New constructions procurement process </li></ul><ul><li>Joint Training </li></ul><ul><li>GREATER INDUSTRIAL INVOLVEMENT </li></ul><ul><li>Technological development and obsolescence </li></ul><ul><li>Innovative contracts </li></ul><ul><li>COOPERATION WITHIN DEFENCE/CIVILIAN (NATIONAL/INTERNATIONAL) </li></ul>
    26. 26. CHALLENGES AREAS TO IMPROVE: INFO-LOGISTIC SYSTEM <ul><li>ARSENALS & MATERIALS MANAGEMENT </li></ul><ul><ul><li>Maintenance management </li></ul></ul><ul><ul><li>Logistics of materials </li></ul></ul><ul><ul><ul><li>Materials data </li></ul></ul></ul><ul><ul><ul><li>Procurement </li></ul></ul></ul><ul><ul><ul><li>Handling </li></ul></ul></ul><ul><ul><li>Administration and audit </li></ul></ul><ul><ul><ul><li>Suppliers procurement accounting </li></ul></ul></ul><ul><ul><ul><li>Management of cost centres </li></ul></ul></ul><ul><ul><ul><li>Management of contracts </li></ul></ul></ul>
    27. 27. AECMA 1000 D NEW DATA MODEL FOR LOGISTIC SUPPORT ANALYSIS = NATO Product Data Model NH – 90 PROGRAMME DATA BASE MIL - STD 1388 - 2 B AECMA 2000 M CHALLENGES AREAS TO IMPROVE: STANDARDIZATION NIILS: Joint Regulation for ILS Data Model
    28. 28. CHALLENGES AREAS TO IMPROVE: NEW CONSTRUCTIONS <ul><li>Involvement of the Logistic Inspectorate since the very beginning of the acquisition process </li></ul><ul><li>Use the warranty period as well as “training opportunity” for arsenal personnel </li></ul><ul><li>Homogenization among all the different Programmes, national and international </li></ul>
    29. 29. CHALLENGES <ul><li>The spread of logistic culture is important to create innovative behaviour for: </li></ul><ul><li>design analysis and synthesis; </li></ul><ul><li>advance reflections in an integrated overview on the Logistic Support System. </li></ul><ul><li>JOINT LOGISTICS SCHOOL </li></ul><ul><li>(CEFLI: Joint Logistics Training Center) </li></ul>AREAS TO IMPROVE: JOINT TRAINING
    30. 30. LOCAL INDUSTRY NATIONAL INDUSTRY ARSENALS CHALLENGES GREATER INDUSTRIAL INVOLVEMENT <ul><li>Procurement phase : definition of the logistic support </li></ul><ul><li>In service phase : analysis of failures </li></ul>Navy MUST keep in house capabilities
    31. 31. CHALLENGES <ul><li>TECHNOLOGICAL DEVELOPMENT </li></ul>GREATER INDUSTRIAL INVOLVEMENT <ul><li>INNOVATIVE PROJECTUALITY: </li></ul><ul><ul><ul><li>Temporary Global Support </li></ul></ul></ul><ul><ul><ul><li>Service Level Agreement </li></ul></ul></ul><ul><ul><ul><li>Operational Availability </li></ul></ul></ul>“ from development and production organization … to life cycle management organization”
    32. 32. CHALLANGES <ul><li>Needs </li></ul><ul><li>Supportability assessment (Ship, System, Equipment) </li></ul><ul><li>Logistics Support System assessment </li></ul><ul><ul><li>arsenals </li></ul></ul><ul><ul><li>Industry (national, local) </li></ul></ul><ul><li>Treasuring feedbacks into Logistics Support System </li></ul><ul><li>Fleet Availability </li></ul><ul><li>Goals </li></ul><ul><li>Different support contracts (searching the best with feedbacks and lesson learned) </li></ul><ul><li>Identify prime contractor (sole and qualified) </li></ul><ul><ul><li>Class of Ships </li></ul></ul><ul><ul><li>Particular Systems/Equipments </li></ul></ul><ul><li>Performance based Logistics contracts (measurable and testable) </li></ul><ul><li>Local Industry involvement (efficiency and lower costs) </li></ul><ul><li>Transfer of know-how to Arsenals and Local Industry (statements measurable) </li></ul><ul><li>Treasuring previous logistics studies </li></ul><ul><li>Having, knowing, sharing maintenance plans (levels 3° and 4°: especially when prime contractor is different form design authority ) </li></ul>Logistics Support System “ field proven” (balancing costs-results) GREATER INDUSTRIAL INVOLVEMENT
    33. 33. CHALLENGES ARMY LOGISTIC COMMAND AIR FORCE LOGISTIC COMMAND NAVY LOGISTIC INSPECOTORATE CARABINIERI FORCE LOGISTIC INSPECTORATE <ul><li>Joint Logistics Directive of Chief of Staff of Defence </li></ul><ul><li>PADLI </li></ul>AREAS TO IMPROVE: DEFENCE COLLABORATION
    34. 34. CHALLENGES AREAS TO IMPROVE: International Collaboration <ul><li>Working international: </li></ul><ul><li>time consuming </li></ul><ul><li>national practices and rules are not easy to change </li></ul><ul><li>national industrial interests must be considered </li></ul><ul><li>highest level of efficiency </li></ul><ul><li>cost savings </li></ul><ul><li>image </li></ul>
    35. 35. MAINTENANCE CORE BUSINESS EFFECTIVE INSPECTORATE IMPROVEMENT EFFECTIVE DEPENDING BODIES IMPROVEMENT GREATER INVOLVEMENT IN SUPPORT DEFINITION INTEGRATED INDUSTRY INVOLVEMENT OPTIMIZING SYNERGIES WITH LOGISTC ORGANIZATIONS CONCLUSIONS CONSOLIDATED STRATEGY FOR NAVAL SUPPORT NATIONAL LOCAL JOINT INTERNATIONAL
    36. 36. CONCLUSIONS We seek interoperability by means of high technology and integrated logistics support.

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