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Ammunition Program Restructure

Plan:

• Context

• Progress of the Ammunition Program Restructure (APR) Project

• Status of the Ammunition Program elements

• PMB 14/07 endorsed Ammunition Program governance model

Col Dan Rivière

Materiel Group J4 (Mat J4) and Ammunition Program Restructure (APR) Team LeadCFLA Ottawa Chapter, 20 May 2014

Perspective (PERI)Personnel: • Vast array of “A&E Practitioners”: Ammunition Technical Officers (ATOs), Explosive Engineers (EEs),

Ammunition Technicians (ATs), Civilian Ammunition Technicians (CATs); AWTs, NWTs, EOD Operators, Civilian Contractors, Allies (military and Civilian)

• Supply Management

Equipment • Ammunition is about half of DND’s $6B inventory

– Over 40% of the GoC total inventory holdings– 12% of Net Value of all DND/CF non-infrastructure materiel assets (capital assets + inventory)

• Annual procurement of ammo and explosives involves expenditure over $140 (significant reductions in the past years)

– Much of it under MSP, which is strategically important to Canada

Readiness (through Governance):• The program has been restructured multiple times

– Until recently managed in a highly decentralized framework, guided by the « Ammunition Board »

– Ammo Program crossed Strategic, Operational and Tactical responsibilities across L1, L2 and L3 HQs – Critical Mass versus Organizational Depth

– L1 ATA function resided in L3 HQ with minimal / ineffective influence on L1 planning

Infrastructure:• Roughly 350 licensed 3rd and 2nd line Ammunition facilities at 28 locations for storage and

supporting activities including workshops, transit, hardstand and laboratories, distributed across CanadaWeakness in management of DND’s ammo program therefore has a significant impact on:

• CF operations and readiness• Defence industrial capabilities• Canada’s Public Accounts

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The Challenge• Notwithstanding overall success in supporting ops, governance review identified

multiple problems:

– Inability to coherently address inventory data currency and accuracy problems, and Horizon 2 and 3 planning requirements, affecting ops and public accounts

– Basis for requirements unclear and not well aligned with readiness management, meaning uncertain justification for expenditures

– No strategic planning of stockpile positioning and distribution

– No strategic planning design for infrastructure

– Poor integration of business systems driving up business costs, which resulted in customized ammo-unique solutions

– Overlaps, gaps and uncertainty in authorities, responsibilities and accountabilities (ARA) hindering decision making and leaving critical gaps (e.g. demilitarization)

– Lack of strategic level performance and risk management reporting on the program

– Ad Hoc specialist personnel selection, training and professional development (force generation), as well as retention and leadership development problems.

– Terms of reference of the ammunition board (AB) do not provide authority to make strategic decisions and execute the program

– Issues tabled at the board were mostly at the tactical and operational level and were not linked to program outputs and outcomes

Governance andIntegration

Inventory Management

Warehousing and Distribution

Requirements Determination

Support Capabilities

(PERI)

Demand – AllocnReconciliation

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Mission:• To oversee strategic-level management of the ammunition & explosives (A&E)

program, with the view to – providing a comprehensive mechanism for A&E policy and support capability

management, and – enabling strategic surveillance, collaborative readiness planning and Joint,

Interagency, Multinational and Public (JIMP) information exchange

Pillars:

« Virtual Team »Regulator

(DAER)Integrator(J4 Ammo)

EPM(DAEME)

ProjectIntegration

Program Mgt

Policy andDoctrine

SupportCapability

Commodity:Quality ammunition efficiently delivered on time to support CAF ops & trg

Capability:Effective ammunition support capabilities

Accountability:Accurate inventory and financial data

Outcomes

The Program

« Road to APR »

“Go” IOC FOCPhase 2:Mobilize + Outreach

Phase 3:Implement + Optimize

Phase 1:Plan + Prep

+6m(31 Mar 2014)

+12m(15 Sep 2014)

Obj - Steady State- NFO- Continuous improvement + processoptimization

APR AO

Pre-Conditions VCDS/ DCB approval, received Options Analysis, completed Mgt framework, with exec leadership in place, established MIP signed-off by ADM(Mat) Res (pers, $, infra, sys) made available to the APR Tm TOA from Study Ld to APR Team Ld, completed

AA

LD

Conditions for IOC Orient: retreat (kick-off) conducted Res secured ($, pers, infra, sys); pers transfers staff work initiated Training initiated APR (Core) Tm assembled TORs developed and communicated Fin and HR authorities delegated. Project Control Office (PCO) estab. AB evolved to APOC; last AB forum held (closed). Temporary/Minimum manning levels for J4 Ammo Br (Policy, Program and Sp Capability Sections) are reached (14). Track 1: NICP/EPM functions consolidated under LEPM/DAEME. Track 2: New J4 Ammo Branch activated under DCOS Mat. CJOC functions realigned (internal).

- IOC: (Tracks 1-2) Achieved.

Conditions for FOC√ Revitalized governance model and APOC TORs endorsed by PMB- APOC forum held.- Manning levels for J4 Ammo Br (Policy, Program and Support Capability Management Sections) optimized (15-20).- Pers transfers approved and completed (as per MIP; relocations internal to Mat Gp and from external).- Training completed (Program, Performance and Risk Management training essential).- Transition/ integration of J4 Ammo Br into Mat J4 completed.- APR PCO transitioned into Mat J4 Sec.

- FOC: ADM(Mat) declared- APR Project Closure and transition to steady state

- Ammunition Program: Report back to PMB (on annual basis or as req).

Focus: FG

Focus: FE(and beyond)

Cursit

(0): MIP sign-off(16 Sep 2013)

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Current posture – Assessment and ProgressFunction Assess + Trend Current OPIs Remarks

Start15-09-2013

Last19-03-2014

Current05-2014

Prog Planning & Management

OPI: Mat J4 Ammo - Secretariat, Project Control Office stood up.- Governance model, endorsed at PMB 14/07- Dev APOC sub-committee/WG structure- CRS MAPs (Acquisition) closing

Policy & Doctrine OPI: DAER (regulatory), J4 Ammo (non-regulatory)OCI: CJOC, DMPP, DAEME

- Reviewing entire ammo policy suite: regulatory, non-regulatory, technical.

Sp Capability Management

OPI: CFDOCI: CJOC, ECS, J4 Ammo

- Outreach/ engagements in progress- Developing processes

Requirements Management

OPI: SJS OCI: Mat Gp, ECS

- Requirements: Call Letter to initiate annual cycle rel by DOS SJS (April 2014)- Review of Ammunition Requirements WG TORs

Ammo EPM OPI: LEPM/DAEME, SOFCOM (Black Ammo)OCI: PWGSC, MSP Partners

- Natl Inventory Control Pt (NICP) in Mat Gp/LEPM- Procedures being established

Ammo Pers Management

OPI: CF Branches, CorpsOCI: CJOC, ECS

- Highly decentralized and dispersed function- J4 Ammo has not yet addressed the challenges

Infrastructure OPI: ADM(IE)OCI: CJOC, ECS, Mat J4 Ammo, L1 ATA

- Outreach to L1s and SME advice to OPI for national real property development planning - J4 Ammo has not yet addressed the challenges

Regulatory OPI: DAER - Renewed Policy suite nearing completion- Compliance and Safety program stable

Systems Management

OPI: Mat Gp (DRMIS wave 2), IM Gp (AIMS)

-Ongoing tech support, Ammunition Information and Maintenance System (AIMS)- Coord development of reporting tools

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Composition: Reps preferably at Col/EX Level

Core Membership• SJS J5 (Co-Chair) • DCOS Mat (Co-Chair) • VCDS: DDFP (in direct support) • SJS J34• CJOC: J4 and Comd CMSG • ECS (RCN, CA, RCAF) • CANSOF• CMP• ADM(IE)• ADM(S&T)• DAER• Mat Gp: DGLEPM, DGMSSC, DGIIP, J4, DAEME, DLP

Supporting Membership• PWGSC• CFEOD• ADM(IM) • Mat Gp: DGMEPM, DGAEPM, DGMPD(Air), DGMPD(L&S), DMG Compt, DMGOR, LBI

Coordination: Mat J4 Ammo Secretariat

Meeting and Reporting Frequency: • Quarterly or as required

Mandate:To provide strategic advice and make recommendations to the Programme Management Board (PMB) on all aspects of the DND/CAF Ammunition & Explosives, linked to its intended outcomes. Outcomes: Effective management of: • Ammunition as a commodity,• Ammunition Support Capability, and• Accountability.

Program Elements:

The primary focus of APOC is to assist CAF/DND senior leadership with decision support and advice as it affects performance of and risks to the ammunition program. It facilitates a collaborative forum to enable cross-functional coordination and monitoring of the ammunition program elements:• Program planning and management• Policy and doctrine• Support capability management• Requirements management• Ammo equipment program management• Ammunition personnel management• Infrastructure• Regulatory• Systems management

Ammo Program Oversight Committee (APOC):Terms of Reference

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Opportunity: Ammo Program in support of Defence Renewal

Ammo Program Pillars

• SME advice• Decision support

ADM(Mat) (MSSC)2.1 A&E Inventory Mgt

(Modernize management of and rationalize commodity)

SJS1.4 A&E Rqmnts Planning

(Align with FP&R)

ADM(IE)4.2 Real Prop Rationalization

(Optimize Footprint)

CJOC (CMSG)2.2 A&E Warehousing-Distr

(Optimize space and movement)

Governance andIntegration

Inventory Management

Warehousing and Distribution

Requirements Determination

Support Capabilities

(PRICIE)

Demand – AllocnReconciliation