LMP

Logistics Modernization Program

2004 Department of DefenseMaintenance Symposium & Exhibition

Briefer: Mr. Frank ZardeckiDeputy Commander

Tobyhanna Army Depot

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LMP

Agenda

!Program Overview

!Current Implementation Status

!Pilot Stabilization Highlights

!Deployment Sites

!LMP Governance

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LMP

• Purchased a Service, Not A System • Leverage Private Sector Investments• Adopt Best Commercial Practices • Firm Fixed Price with Performance Incentives

Implemented Innovative Acquisition Approach• Outsourced our non-core competencies

– Only A-76 Waiver in the Army • A Soft Landing to take care of the displaced

Government employees• Potential to Extend and Expand into Other

Related Logistics and Business Areas

LMP Background

Industrial Operations

Current Army Materiel Command’sNational Level Legacy Systems Legacy System Shortfalls

• Outdated• Unresponsive

(Batch, Not Real-Time)• 25 Year Old Technology• 30 Year Old Processes• Multiple systems

Standard Depot System

Commodity CommandStandard System

National Inventory

Legacy Environment

Modernize National Level Logistics Business Practices and Supporting Information Technology to Meet Current and Future Military Readiness Requirements

Modernization Goal

DFAS Task Order

To Modernize financial systems Concurrent with

LMP

DFAS Task Order

To Modernize financial systems Concurrent with

LMP

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LMP

PRIME CONTRACTORComputer Sciences Corporation (CSC)Development Work in Moorestown N.J.

Over 500 Contractor and 100 Government Personnel working in

Collaborative Teams

SUBCONTRACTORSAT&T; Bearingpoint; Metter Industries; Raytheon Technical Services

Company; SUN; Oracle; CISCO; Compaq; SIGNAL Corporation; SAP AG is the ERP software vendor

Type of Contract

Firm Fixed Price Plus Performance Bonus

Type of Contract

Firm Fixed Price Plus Performance Bonus

Term of Contract

Dec 99 - Dec 11

Term of Contract

Dec 99 - Dec 11Estimated Cumulative

Contract Value

$800M

Estimated Cumulative Contract Value

$800M

Contractawarded

29 Dec 99

Contractawarded

29 Dec 9970% of contractvalue incentive

driven

70% of contractvalue incentive

driven

Partnering With Industry

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LMP

LMP Core Business Processes

• Army Search Matrix and Penetration Logic

• Real-time Global Available-to-Promise

• Back order Processing

• MILSTRIP sales order processing

Industrial Base Operations

Acquisition and Distribution

• Procurement• Manufacturing and Remanufacturing

Resource Requirements Planning• National Maintenance Management• Base Operations and Plant Maintenance• Quality Management• Human Resources

• Inventory Management

• Warehouse Management

• Single Stock Fund• Environment,

Health, and Safety

• Long Term and Material Requirements Planning

• Project Systems and Budget Planning

• Demand Planning• Distribution Planning

Logistics Chain Planning

CustomersActive ArmyArmy Reserves National GuardOther DoD

• AF• Navy• Marines• DLA

Other Government• Federal• State• Local

Foreign Armed Services

Order Management Buy Distribution

SuppliersCommercial ContractorsArmy Industrial Base

• Depots• Arsenals

Other DoD• DLA• Other

ServicesCustomer Returns

Make

Fix

Budget and Finance• Cost Accounting• Budget Formulation

Product Lifecycle Management• Ammunition Support• Bills of Material

• General Accounting DFAS and Funds Management

• Cost Management and Real Estate (Facilities) Management

• Provisioning• Cataloging

• Packaging and Freight• Maintenance Engineering

Data andReporting

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LMP

High Level LMP SAP SolutionLMP Architecture Attributes• SAP based

• SAP R/3 Version 4.6c (merged Public Sector and Aerospace and Defense solutions)• SAP suite of new generation tools; Advanced Planning and Optimizer, Business Warehouse and Strategic Enterprise Management

• Uses SeeBeyond middleware to interface with external trading partners

• Functional process flows will be documented in SAP Solution Manager

• Potential to extend solution to Fixed-Base Installation ERP requirement

• Solution focused around 8 major business areas

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LMP

Current Status! Jul 03 Pilot sites Go-Live

! Dec 03 Pilot Stabilization effort started

! Oct/Nov 04 Pilot Stabilization effort

to be completed/validated

! Feb 05 2nd Deployment Go-live planned

(AMCOM and Depots)

! FY-05 3rd Deployment Go-live (TACOM, JMC and AFSC)

In process of working expansions for LMP via task orders to include: • Industrial Base Modernization (on contract)• National Maintenance Management (on contract)• Solution Manager (on contract)• Exchange Pricing (on contract)• Installation ERP (Potential)