Logistic support
- 1. SOLE – The International Society of Logistics Introduction to Logistics and Integrated Logistics Support (ILS) Presented to University of St. Thomas by Chapter 6 District 6 Minneapolis – St. Paul April 30, 2003
- 2. Logistics in History Historically, Army quartermasters have been charged with: Examples: Feeding soldiers (consumables, preparation service) Providing fodder for horses (foraging, transportation) Procuring uniforms, equipment, weapons, and ammunition (supply and repair management) Supporting aircraft, ships, tanks, guns, vehicles (fuel, spare parts, repair, transportation, storage, interoperability)
- 3. Scope: Manufacturing vs. After-Sale 75 % of U. S. employment is services: 21 % of employment is goods producing: Construction Manufacturing 4 % of employment is extraction: Agriculture Mining Source: Statistical Abstract of the United States, 1997 for 1990
- 4. Emphasis: Products vs. Systems 17.8 % of Gross Domestic Product is manufacturing (1990): Consumables Non-repairable products Repairable (consumer) products Repairable (industrial, complex) products Mobile (self-propelled) vs. Installed Custom Engineered vs. standard product
- 5. Product Life Cycle Product life cycle showing net profit highest in mature phases.
- 6. Systems Structure System (prime contractor) Subsystem - product (subcontractor level) Sub-Subsystem Component Replaceable Assembly / Part Application-Operating System / Software
- 7. Support Concepts - Product Life Cycle Management Life Cycle Cost (LCC) Service Engineering (products) Integrated Logistics Support (ILS) Logistics Engineering (complex systems)
- 8. Product & System Life Cycle Management Pre-Concept Concept Demonstration and Evaluation Full Scale Development Production and Operation Phase Out Development Introduction Growth Maturity Decline System Product
- 9. Concept - Life Cycle Cost (LCC) (1) All costs associated with the system life cycle, (2) The total cost of acquisition and ownership over the life cycle, (3) Approach to costing that considers all costs , and an (4) Approach whereby the value of different concepts can be made by comparison of different LCC estimates and the concept with the minimum LCC is preferred.
- 10. Concept - Support Elements
- 11. Support Concepts – Elements (cont’d)
- 12. Integrated Logistics Support (ILS) “ A disciplined, unified and iterative approach to the management and technical activities necessary to (1) integrate support considerations into system and equipment design; (2) develop support requirements that are related consistently to readiness objectives, to design, and to each other; (3) acquire the required support; and (4) provide the required support during the operational phase at minimum cost”.
- 13. Logistics Engineering “ Those basic design related functions implemented as necessary to meet the objectives of ILS .” Initial definition of system support requirements Development of design input criteria Evaluation of alternative design configurations Determination of resource requirements Ongoing assessment of support infrastructure
- 14. Logistics Definition #1 “ The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements ”.
- 15. Logistics Definition #2 “ The art and science of management, engineering, and technical activities concerned with requirements, design, and supplying and maintaining resources to support objectives, plans, and operations.”
- 16. Logistics Definition #3 “ Logistics is the science of planning and carrying out the movement and maintenance of forces. In its most comprehensive sense, those aspects of military operations which deal with: (a) design and development, acquisition, storage, movement, distribution, maintenance, evacuation, and disposition of materials; (b) movement, evacuation, and hospitalization of personnel; (c) acquisition or construction, maintenance, operation, and disposition of facilities; (d) acquisition or furnishing of services.” North Atlantic Treaty Organization (NATO)
- 17. Affordability Affordability is made up of: Schedule Affects Cost when compressed Performance Affects cost by quality required Cost The driver in affordability
- 18. Affordability Where are the major costs a product Life Cycle Design/Development Procurement/Manufacture Support Disposal
- 19. Affordability Costs of Life Cycle
- 20. Affordability Methods of estimating costs Life Cycle Cost (LCC) Costs to design, manufacture, use and dispose of a product Total Ownership Cost LCC plus costs to recruit, train and support the product operating personnel Design to Cost Working to the amount of funds available
- 21. Affordability
- 22. Affordability Support Factors Creating Costs How many products Where and how many sites How many products at each site How is repair accomplished How many people are needed to repair What training is needed by the maintenance people What repair parts are needed and how many How fast can failed units be repaired Repair/support equipment is needed
- 23. Affordability How is support designed into the product Analysis of the design for: Maintainability – How fast can it be repaired Reliability – How long will it work without failing Availability – Is it available when needed
- 24. Affordability How is the lowest LCC cost achieved Tradeoff studies Design tradeoff For ease of repair and cost of repair parts Manufacturing tradeoff For less environmental cost at disposal Support tradeoff Where to repair and at what level (O,I,Depot)
- 25. Affordability Life Cycle Cost System Effectiveness Imbalance between “cost” and “System Effectiveness” Research & Development COSTS Production & Construction System Operation Maintenance & Support Retirement & Disposal Performance & Effectiveness Reliability, Maintainability & Supportability Production & Disposability System Quality Other Technical Factors
- 26. Affordability Extra costs created by lack of support analysis Peculiar support equipment Special Tools Test equipment Training Support of support equipment
- 27. Affordability Conclusion Supportability is a main factor in the cost of owning a product The most efficient way to get to the lowest LCC is analysis of the design
- 28. Design and Supportability The tale of four vehicles
- 29. Measures of Logistics R eliability M aintainability A vailability
- 30. Reliability How often a thing breaks. Expressed in failures/unit of measure. Examples 385 failures/million hours of operation 68 failures/100,000 miles 7 failures/million cycles
- 31. Maintainability The ease with which an item is repaired Includes time to diagnose the problem, fix the problem and verify the fix Usually expressed as mean time to repair
- 32. Availability The amount of time a piece of equipment is available for use. Availability affected by Time equipment in for service Time equipment in for repair
- 33. Availability & Support Cost High Reliability + High Maintainability = High availability Low support cost
- 34. Technology Changes Emissions standards necessitated Fuel injection Electronic distributors Hot spark plugs Three and four valves/cylinder Mass air flow sensors Oxygen sensors Exhaust gas regulators
- 35. Scheduled Maintenance Comparison 1978 Omni (1.7 Liter) Change Coolant 30 K miles Change Oil & Filter 3 K miles Change Air Filter 30 K miles Change Spark Plugs 15 K miles Ignition Timing 15K miles Replace PCV 30 K miles Service Trans 15 K miles Plug Wires As needed Replace Belts As needed Replace Timing Belt 60 K miles Change Fuel Filter 15 K miles 1998 Cirrus (2.0 Liter) Change Coolant 36 K miles Change Oil & Filter 3 K miles Change Ail Filter 30 k miles Change Spark Plugs 30 K miles Ignition Timing N/A Replace PCV 30 K miles Service Trans 15 K miles Plug Wires 60 K miles Replace Belts 60 K miles Replace Timing Belt 60 K miles Change Fuel Filter N/A
- 36. Cost of Repair (Fuel System) Vehicle Component Pt Cost Hours Lbr Rate Lbr Cost Tot Cost 1978 Omni, Carb Fuel Filter $ 3.00 0.3 $94.00 $ 28.20 $ 31.20 1.7 Liter, 4 Cylinder Fuel Pump $ 50.00 0.5 $94.00 $ 47.00 $ 97.00 1998 Cirrus, Inject Fuel Filter $ 27.00 0.7 $94.00 $ 65.80 $ 92.80 2.0 Liter, 4 Cylinder Fuel Pump $ 215.00 1.4 $94.00 $ 131.60 $ 346.60 1998 Escort, Inject Fuel Filter $ 16.00 0.6 $94.00 $ 56.40 $ 72.40 1.9 Liter, 4 Cylinder Fuel Pump $ 255.00 0.8 $94.00 $ 75.20 $ 330.20 1998 Cavalier, Inject Fuel Filter $ 19.00 0.7 $94.00 $ 65.80 $ 84.80 2.2 Liter, 4 Cylinder Fuel Pump $ 457.00 1.8 $94.00 $ 169.20 $ 626.20
- 37. Fuel System Maintenance Cost Over Life of Vehicle Vehicle Task Cost Freq Total Cost 1978 Omni Change Fuel Filter $ 31.20 1/15 K miles $ 310.20 Change Fuel Pump $ 97.00 1/75 K miles $ 194.00 $ 504.20 1998 Cirrus Change Fuel Filter $ 92.80 1/150 K miles $ 92.80 Change Fuel Pump $ 346.60 1/150 K miles $ 346.60 $ 439.40 1998 Escort Change Fuel Filter $ 72.40 1/30 K miles $ 362.00 Change Fuel Pump $ 330.20 1/150 K miles $ 330.20 $ 692.20 1998 Cavalier Change Fuel Filter $ 84.80 1/30 K miles $ 424.00 Change Fuel Pump $ 457.00 1/150 K miles $ 457.00 $ 881.00
- 38. When Things Go Wrong Lens separated from $75.00 $47.00 $122.00 fog lamp Heat/AC valve broke $150.00 $600.00 $750.00 Premature spark plug $48.00 $200.00 $248.00 wearout Headlight gasket $300.00 $94.00 $394.00 separation Fault Parts Cost Labor Cost Total Cost
- 39. Automotive Design Trends Longer vehicle life (150 K miles) High reliability for critical components Low reliability for non critical components Minimal preventive maintenance Built in diagnostics Fewer repair parts, more assemblies Poor maintainability
- 40. Effect on Consumers Few critical component failures Several non critical component failures High parts cost High labor cost Support costs escalate after 100k miles
- 41. What can we do? Be aware of hidden vehicle support cost Read consumer type evaluations Look for accessibility of components Talk to mechanics Ask dealer for scheduled maintenance costs. Complain about support costs
- 42. Logistics Engineering and Support Engineering Questions ???
Editor's Notes
- #2: Week 1 Introductory slide. This session is an introduction to logistics and Integrated Logistics Support (ILS).
- #3: Logistics exists in nature and has been part of human survival since man first started hunting and gathering for food. Within the military, the logistician was assigned quartermaster duties and was responsible for both people and animals.
- #4: While often popular in text books, this definition is not always well accepted by practicing logisticians. But it does indicate that it is important to provide the desired amount of the right products in a specified time and in a specified condition, and at an acceptable cost.
- #5: While often popular in text books, this definition is not always well accepted by practicing logisticians. But it does indicate that it is important to provide the desired amount of the right products in a specified time and in a specified condition, and at an acceptable cost.
- #6: Logistics is performed during defined support phases. These come from military sources but could just as easily be used in business applications. The point to be stressed is that logistics spans the entire life cycle of a product or service.
- #7: Later on we will be discussing hardware. This is the first introduction to the breakdown of hardware into various subcomponents.
- #8: Logistics is performed during defined support phases. These come from military sources but could just as easily be used in business applications. The point to be stressed is that logistics spans the entire life cycle of a product or service.
- #9: Logistics is performed during defined support phases. These come from military sources but could just as easily be used in business applications. The point to be stressed is that logistics spans the entire life cycle of a product or service.
- #10: Later on we will be discussing hardware. This is the first introduction to the breakdown of hardware into various subcomponents.
- #11: This is a solution to the Mom’s Kitchen exercise. Hopefully, the class identified all or most of these items.
- #12: This is a solution to the Mom’s Kitchen exercise. Hopefully, the class identified all or most of these items.
- #13: The entire logistics effort (consisting of individual disciplines) must be coordinated to ensure effectiveness. This is the purpose of ILS. Each of the discipline’s activities must be scheduled effectively and efficiently so that no group is held up waiting for data. When the disciplines produce similar type data, ILS ensures that the effort is performed only one time and that every group shares that data.
- #14: This chart describes the logistics engineering process. What is it that makes a logistician an “engineer”? It is the science that goes into performing the effort. Sometimes it is a title, sometimes it is the degree of science that goes into decision making.
- #15: This definition from the Council of Logistics Management is geared toward business logistics. The emphasis here is that it deals with the movement of materials from raw materials to the consumer.
- #16: The first official definition of logistics comes from the International Society of Logistics (SOLE). Being stressed here is that logistics is both an art and a science.
- #17: NATO is a governing body of many nations. This definition is much longer than any other and is more comprehensive. It should be noted that it includes medical services along with the usual acquisition and movement of materials.
- #18: Compressing the schedule means more assets (bodies) need to be used, overtime worked, contract labor brought in, machinery taken away from other projects, etc, All of which cost money Increased performance requires more design, closer tolerances, more hardware/software, more manufacturing, etc. All of which cost money Cost to design, build/manufacture, support (keep in operation) is driven by the amount of money the user has or is willing to put into the pot. This in turn is influenced by the urgency with which the buyer needs the product.
- #19: The previous slide touched on the costs of a product, lets look at them. Design/Development – This is usually a standard cost which is difficult to find areas of significant cost savings, or in the vernacular, “It costs what it costs”. We shall see in a later slide what the average cost of design is in the life cycle. Procurement/Manufacture – This is very like design/development in the costs. Manufacturing, especially on a large scale has large outlays in capital equipment. This keeps the manufacturer committed to a low turnover of equipment. The chances of significant costs savings here is low. Support – This is the place where approximately 64% of the product life cycle costs are spent. This is where cost savings can be effected. However, in order to save costs during support there must be attention to the design in order to create a product which has the most easily cost effective support system. A lot of this depends on who is going to bear the cost of support – the buyer or the producer Ex: Blackbird, Automobile, Xerox machine, warranties. Disposal – Cost of disposal can be affected by the design and manufacture of the product. Ex printed circuit boards, air conditioners
- #20: Cost of engineering is generally fixed Cost of manufacturing is generally fixed Cost of support is fixed during design and manufacturing
- #21: LCC is total cost to use a product TOC is LCC plus the cost of the operating personnel. In some cases this is salaries and benefits. In other cases of offsite personnel (military) it includes the infrastructure to support the operating personnel and their families such as hospitals, schools and churches. DTC is included in here as a definition which is used at times. It is a term that intimates the product can be produced at a particular cost agreed to by the parties in advance.
- #22: This graphic is a favorite of Ben Blanchard, a SOLE member and retired professor at West Virginia College. He has thought logistics for decades and it always appears in his presentations and books. It is a good example of the factors affecting logistics and supportability which can create major problems if they are not put aside or forgotten.
- #23: These are most but not all of the factors which affect affordability. Depending on the product other factors may creep in to the cost. Ex. If you are drilling for oil or mining (especially strip mining) and are required to restore the environment when the drilling is over. If you are building amusement park machines what does insurance cost.
- #24: Hoe do you design support into the product The logistics people must be joined at the hip with the engineers. This leads to conflict between the two, but if it is handled constructively leads to a superior product. The loggies must be in the engineering meetings from the beginning of the design through the final handoff to production. They must analyze different variations of the design to see which is the least costly to support. This will boil down to ease of repair, availability of repair parts, type and number of personnel and training needed, cost to send repair personnel to the site, etc. If you need to hire an engineer to repair the equipment it will be a lot more difficult to find personnel and cost much more than if a low grade technician can be trained to replaces black boxes. Some repair parts have higher costs but last longer than other available parts.
- #25: I mentioned tradeoff studies. Ease of repair can be as simple as breaking the weight of a product into several replaceable parts so one person can change it out or designing in a hook somewhere to hang a piece of removed equipment where something has to be changed behind it.
- #26: This graphic illustrates the balance between cost and system effectiveness. The program manager must work on this balance in order to make the arm lean in the other direction. This is where tradeoff’s make the difference.
- #27: Lack of analysis of the product will lead to increases in costs due to requirements for the products above. The objective is to minimize the need for the products above. These products add costs all out of proportion to their visual perception.
- #28: Support is over 60% of the life cycle cost of a product. It is the place where the most cost can be taken out of the LCC of a product. One of the problems with support analysis is the inability to prove how many dollars are saved by doing the analysis. Most program managers perception of support and logistics is a black hole into which money is wasted. However the money spent up front on analysis of the design for supportability can save much redesign and loud meetings as well as many dollars in support. If the same person is responsible for the complete life cycle.