Csc LMP U.S. Army Project
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The document discusses the US Army Logistics Modernization Program (LMP). It aims to modernize Army logistics business systems through SAP implementation to improve processes, decrease costs, and enhance warfighter support. The LMP will replace legacy systems with an ERP solution to provide real-time data, streamline operations, and achieve a single version of the truth across the enterprise. Implementing the new system presents organizational change and training challenges but is expected to increase readiness, efficiency and cost-effectiveness through standardized best practices and global visibility.
Csc LMP U.S. Army Project
- 1. Army Material Command, Logistics Modernization Program Anthony Zelinski, US Army Logistics Modernization Program Horace Dick, CSC US Army Logistics Modernization Program
- 2. Agenda LMP Background Enterprise Vision Organizational Alignment Challenges Working the Solution Transition SAPPHIRE / OR3824 Page 2
- 3. Why LMP? Key Focus business systems modernization on supporting component of the warfighter the Army • Improve business processes Logistics IT • Decrease operational cost and cycle times vision • Improve the accuracy and timeliness of information Remaining on legacy is not a viable option • Cost to support legacy systems are escalating • Legacy systems are rapidly aging To reduce redundant and stovepipe IT investments • Commodity Command Standard System (CCSS) • Standard Depot System (SDS) • Bridges and uniques Legacy systems cannot meet requirements of: • Federal Financial Improvement Act (FFMIA) • Business Enterprise Architecture (BEA) • Standard Financial Information System (SFIS) • Radio Frequency Identification (RFID) / Unique Identification (UID) • Net-centricity SAPPHIRE / OR3824 Page 3
- 4. LMP Through the General’s Lens LMP Through AMC General’s (CEO) Lens Mission: Support Warfighter Readiness Logistics Modernization Program Effective Cost-Effective Reliably Predict Single Version Continuous Consumable and and Efficient IT Material Needs of Truth Improvement Reparable Orders Service • Common, accurate, • Financial integrity • Focus on core business real-time operating view • Integrated planning and execution functions • Rapid decision making • Precise forecasting • Single version of truth Results: Improved Warfighter Readiness Right Material, Right Place, Right Quantity, at a Moment’s Not SAPPHIRE / OR3824 Page 4
- 5. AMC Scope and Complexity AMC Operations Customers and Suppliers Inventory and Repair Depot End Consumers • OEMs • Air Force • Marines • DLA 149 Fixed Locations • Army • Navy >1,000 Dynamic Locations • DLA • Other • Services Govt. 59 CONUS • Army Depots 38 Countries Installation and Direct Support • Plants 49,000 Civilians Unit Support • Arsenals 1,500 Military (Warfighters) 50,000 Vendors 6,000,000 Items 1,000,000 Customers $40B Goods/Services General Electric Wal-Mart • Repairable product supply chain • Consumable product supply chain • 100 countries • 1,300 stores in nine countries • Cost of goods sold—$38B annually • 100,000 items Analogous to a large multinational conglomerate, multiple businesses (Commands), diverse product portfolios, multiple complex supply chains — with added challenge of customer (Warfighter) readiness for survival SAPPHIRE / OR3824 Page 5
- 6. The LMP Solution Logistics Chain Planning Collaboration • Demand Planning • Long Term and Material • Project Systems and • The LMP Team was built from • Distribution Planning Requirements Planning Budget Planning experts from across CSC, SAP, dozens of external partners and Acquisition and Distribution subject matter experts from across Order AMC Management Buy Distribution • Full functionality implementation approach • Army Search Matrix Industrial Base • Inventory and Penetration Management Unprecedented ERP Logic Operations • Warehouse • Merged Solution • Real-time Global Available-to-Promise Management • Single Stock Fund Make Core R/3, Public Sector Solution • Back order • Environment, and the Aerospace and Defense Processing • MILSTRIP sales Health, and Safety Solution order processing Fix • New Dimensions Products. Advanced Planner Optimizer • Acquisition • Manufacturing and Remanufacturing (APO) Data and Resource Requirements Planning • National Maintenance Management Business Warehouse (BW) Reporting • Base Operations and Plant Maintenance Strategic Enterprise Management • Quality Management • Human Resources (SEM) Single Version of the Truth, End to Budget and Finance • General Accounting DFAS • Cost Management and Real • Cost Accounting End Integration and Funds Management Estate (Facilities) Management • Budget Formulation Product Lifecycle Management • Provisioning • Packaging and Freight • Ammunition Support • Cataloging • Maintenance Engineering • Bills of Material SAPPHIRE / OR3824 Page 6
- 7. SAP® Solution Components Sales and Distribution (SD) Financial (FI) • Sales order processing • General ledger • Pricing SD FI • Special purpose ledger • Shipping MM CO • Accounts payable • Billing • Accounts receivable • Credit PP PLM R/3 AM • Report generator • Fund Management Materials Management (MM) • Purchasing • Inventory management QM 4.6C PS Controlling (CO) • Cost Element Accounting • Invoice verification PM WF • Cost Center Accounting • Warehouse management • Profit Center Accounting HR IS • Internal Orders Production Planning (PP) • Bill of Materials (BOM) • Profitability Analysis • Work centers and routings Project Systems (PS) • Master production scheduling • WBS Elements • Materials requirements planning • Network Orders Product Lifecycle Management (MRP) (PLM) • Production Orders EP BI • Product Data Management Quality Management (QM) • EH&S Plant Maintenance (PM/CS) Workflow (WF) SEM SCM • WS Repair Project Planning Industry Solution (IS) • WS Repair & Overhaul Project • Public Services Execution • Aerospace & Defense • Merged Solution Human Resources (HR) • CATS • Personnel Administration SAPPHIRE / OR3824 Page 7 Copyright © COMPUTER SCIENCES CORPORATION, 2005-2006.
- 8. LMP Enterprise Integration •ATAAPS • SARSS Technology Advances •SOMARDS DFAS Retail Gateway DCMA •MOCAS •DCPS USER Web browser screens. ed •BSM Single sign-on. er LOGSA Information readily available. ne •SAMMS n gi Finance & DLA Real-time information. Accounting Procurement ee Maintenance Mgmt Facility & Fleet Mgmt •DSS Data redundancy standards. R Supply LMP Inventory - Chain •LIDB Mgmt Mgmt •FLIS/CRS Real-time on-screen reporting. DAASC Human Customer Resources Mgmt AIT Programs & Projects TECHNOLOGY Management Information & AEPS Manufacturing Decision Planning Support DoD •AIR FORCE Robust scalable architecture, 24x7 Warehousing Planning & Budgeting Property Mgmt reliability. SERVICES •NAVY Thin client technology. •OTHERS INTERIM Relational global data structure – OTHERS global configuration, with local CCSS OTHERS flexibility. and SDS Centralized configuration management. COTS enterprise application integration. 70+ systems interfacing with LMP Army enterprise integration achieved with the proper solution of architecture, functionality and technology SAPPHIRE / OR3824 Page 8
- 9. SAP® Customer Competency Center Certification Five Major Support areas assessed against SAP’s worldwide competency center database: • Global Strategy and Service Level Management • Support Desk Management • Management of SAP Technology • Support Process Management • Software Change Management Initial certification achieved in 2005 and re-certification achieved in 2007 Companies establish SAP Competency Centers as a best practice to Companies establish SAP Competency Centers as a best practice to support their SAP business solutions support their SAP business solutions SAPPHIRE / OR3824 Page 9
- 10. Enterprise Vision Single Army Logistics Enterprise (SALE) “This plan establishes a foundation for leaders and managers to guide them towards a Single Army Logistics Enterprise. We have a huge challenge, but together we can make it a reality. The Army cannot lose focus on the ultimate Logistics Domain IT objective…SUPPORT THE WARFIGHTER.” - LTG Ann Dunwoody, Strategic Plan for Army Logistics Domain IT Transformation – August 2007 SAPPHIRE / OR3824 Page 10
- 11. Enterprise Vision Objective: Robust automation tools to support Army missions and enable the best decision in relation to: Industrial Operations capacity, cost, and schedule management Industrial Base Modernization Phased Part of Army Logistics Approach Providing: Modernization Program • RFID/AIT Capability To Provide Visibility – • Providing UID Parts Marking and Readers Single Army Logistics • Shop Floor Tracking Enterprise • Enable Technical Data Records Management Master Production Scheduling Providing Capacity & Material Requirements Planning: • Lean Operations • Ability to Re-Plan In Hours vs. Week • Immediate Visibility of Work-In-Progress • Proactive Planning vs. Reactive Logistics Modernization Program Foundation Providing: Commodity Commands Industrial Sites • Improved Demand and Supply Chain Planning • Accurate Financial and Logistical Records • Financial and Logistic Integration • Improved Workloading Forecast • Common Operating Picture Across Supply Chain • Cost Reduction for materiel used in production • Ability To Share Data With DLA and Industry Base process • Reduced Re-Planning • Improved On-Time Delivery SAPPHIRE / OR3824 Page 11
- 12. Organizational Alignment Maximizing ERP Investment DEMAND Make/Repair Plan Thru Make to stock/order SUPPLY Deliver Customer PLANNING PRE-PRODUCTION EXECUTION CLOSE-OUT ORDERS Plan to Make P1.1/P2.1/ Master Scheduling/ Production P3.1 Capacity Planning Planners Process Project Plan to Make Material Authorization P1.1/P2.1/ Expediters Release to & Release P3.1 Plan to Delivery Planned Source Schedule/Produce M1.6/M2.6/M3.7 Workload P2.1/P2.2 M1.1/M2.1/M3.1 P2.3/P2.4 M1.3/M2.3/M3.4 Funded/ Unfunded Planned Make Master MRP Production Shop Floor Labor & Production Production Program Repair BOMs/ RUNS Orders Created & Execution Reporting Order Close-out Close-out Routes Data (Work Centers) (Type 8s) Scheduled Unplanned Source Workload (Order New) Work Centers Planned Data Purchase Plan to Material Rcvd Deliver Make/ Orders Stock/Engineer Source & Staged Created & D1/D2/D3/D4 P2.1/P2.2 Scheduled P2.3/P2.4 • Army FEED BACK to PLANNING DATA • Other Services SAPPHIRE / OR3824 Page 12 Copyright © COMPUTER SCIENCES CORPORATION, 2007.
- 13. Challenges MRP / ERP Evolution Closed MRP Loop MRP ERP (Late 60’s) MRP II (90’s) (70’s) (80’s) Source: ERP Making It Happen, Thomas F. Wallace and Michael H. Kremzar SAPPHIRE / OR3824 Page 13
- 14. Challenges Before ERP Education Silent Education was Education was Majority Mandatory, not Mandatory, not Elective in Elective in Companies that have Companies that have Naysayers Enthusiasts Achieved Class “A” Achieved Class “A” After ERP Education ERP Certification ERP Certification Silent Minority Naysayers Enthusiasts Source: ERP Making It Happen, Thomas F. Wallace and Michael H. Kremzar SAPPHIRE / OR3824 Page 14
- 15. Challenges The Goal: Achieving World Class Performance (By the Numbers) Executive Management Planning Operations Management Planning Operations Management Execution Copyright © COMPUTER SCIENCES CORPORATION, 2005-2007. SAPPHIRE / OR3824 Page 15
- 16. Working the Solution Prototype Inputs and Outputs Pilot & Full Education Training Baseline Prototype Deployment Industry Business New Team Best Goals Enhance Business Solution Design Practice & SDL Operating Knowledge Knowledge Objectives Model Test Continuous Process Improvement Copyright © COMPUTER SCIENCES CORPORATION, 2006. SAPPHIRE / OR3824 Page 16
- 17. Working the Solution Moving from the Informal to the Formal System (Valid Schedules) is the key to ERP Business Benefits Realization Informal System Formal System Business Benefits (Order Launch & Expedite) (Valid Schedules) (Value / Results) • Reorder Point • Time-Phased Order Point Inventory • Estimate of Demand • Actual Calculated Demand Inventory Obsolescence • Excessive Shortages • Minimal Shortages Material Costs • “Hot List” Priorities • Order Due Date Priorities Freight Premium Costs • Front End Loaded Schedules • Level Loaded Schedules Cycle Times (Make/Buy) • “Funny” Numbers • Reliable / Accurate Numbers Overtime Costs • Lack of Accountability • Single Point Accountability • Excessive Mth/Yr End Overtime • Level Loaded Capacity New Business • Long Cycle Times • Short Cycle Times Workforce Productivity • Unreliable Customer Promises • On-Time Shipments Readiness / Ao • Poor Operational Performance • High Operational Performance SAPPHIRE / OR3824 Page 17 Copyright © COMPUTER SCIENCES CORPORATION, 2005-2007.
- 18. Transition Today vs. Tomorrow Longer Cycle Excess Materiel Not TODAY Expediting as a Times The Right Materiel Way of Life Idle Resources, Over ) Reduced Used Resources PS Cycle Time (M Excessive Less Amount of Materiel/Excess Meeting Time Mostly Execution Lower Not Planning R P) Re-planning in (C Costs Hours Not Weeks Little if Any Management Visibility Resources Load Work Executed ) Balanced RP to Plan (M Work Started That Parts Shortages Known Early Will Have to be Put Work Released Enough to Address Aside at Best Time ) n ing Plan Problems Planned For and Job and Asset Status at Not Reacted To D em Fingertips (Readiness) ( LEAN Operations TOMORROW SAPPHIRE / OR3824 Page 18
- 19. Points of Contact Anthony “Tony” Zelinski • anthony.zelinski@us.army.mil • 570-954-9913 Horace Dick • hdick2@csc.com • 856-988 4000 SAPPHIRE / OR3824 Page 19
- 20. Questions? SAPPHIRE / OR3824 Page 20
- 21. Thank you! SAPPHIRE / OR3824 Page 21
- 22. Access SAPPHIRE '08 Orlando Online Watch video recordings, download audio files in MP3 format, and view the slides from all keynotes and presentation sessions. www.sap.com/us/sapphire