COLLINS PROGRAM UPDATE AUSTRALIAN BUSINESS DEFENCE INDUSTRY UNIT 13 JUL 2012 AIR VICE MARSHAL CHRIS DEEBLE PROGRAM MANAGER COLLINS & WEDGETAIL
What happens when you get it wrong! OPERATIONAL CYCLE plus OPERATIONAL AND INTERMEDIATE MAINTENANCE Depot Depot Maintenance Maintenance WORK NOT REDUCED SYSTEM UNDERTAKEN RELIABILITY AVAILABILITY OPERATIONAL REQUIREMENTS NOT MET TECHNICAL AND INTEGRITY MAY BE COMPROMISED ABILITY TO FURTHER ENHANCE THE CAPABILITY IS COMPROMISED INCREASING COST OF OWNERSHIP LOSS OF GOVERNMENT AND PUBLIC CONFIDENCE
Getting Sustainment Right for CCSM OPERATIONAL CYCLE plus OPERATIONAL AND INTERMEDIATE MAINTENANCE Depot Depot Maintenance Maintenance MAINTENANCE SUPPLY SUPPORT SUSTAINMENT FOUNDATIONS • TECHNICAL INTEGRITY ASSURANCE • SUPPLY CHAIN RATIONALISED • • ENTERPRISE FRAMEWORK ESTABLISHED RESPONSIBILITY, ACCOUNTABILITY AND • SUPPLY CHAIN PRIMED • LOGISTICS SUPPORT FUNDED AUTHORITY DEFINED • SUPPLIES ALLIGNED WITH MAINTENANCE • • LOGISTICS PLANS IN PLACE MAINTENANCE SCHEDULE UNDERSTOOD PROGRAM • • MAINT REQUIREMENTS DETERMINATION MAINTENANCE PLANS ESTABLISHED • OBSOLESCENCE MANAGED • UNDERTAKEN RELIABILITY, AVAILABILITY & • SPARES MODELS WITH FEEDBACK LOOPS • LOGISTICS SUPPORT ANALYSIS COMPLETE MAINTAINABILITY DISCIPLINES EMPLOYED • SUPPLY CHAIN RESPONSIVE AND LEVEL • INITIAL THROUGH LIFE COST MODELS TO OPTIMISE THE MAINENTANCE PLAN LOADED • ESTABLISHED DISCIPLINED GOVERNANCE CAPABILITY MANAGEMENT PLAN (WHOLE-OF-LIFE & WHOLE-OF-CAPABILITY) ILS PLANNING BASE AND DISCIPLINES STAKEHOLDER IMPERATIVES ALIGNED INDUSTRY EFFICIENT, LEVEL LOADED AND WITH CAPACITY
What has changed for CCSM? • Rizzo and Navy CIP initiatives • GM Submarines appointed • ISSC signed and operative • Budget increase $706m over the next 4 years and >$1.6b over the decade • New MSA developed and signed These are game changers for the CCSM • Coles Phase 2 report – Enterprise perspective – Must change the way we do business across the CCSM enterprise – ISSC imperative reinforced – Setting realistic goals for CCSM availability Must clearly articulate the benefits of what we are doing – We cannot waste this opportunity!!
CCSM Program Strategy • Safety, Reliability and Optimised Savings, Maintenance Program – Reliability Centred and Condition Based efficiency Maintenance and • Supply Support Reform – Optimised Inventory productivity – Optimised Supply Chain • Strategic Contracts – Performance Based and incentives for efficiency – 5 year rolling contracts – Make-Buy – Broader and sustainable Delivered industry base • Culture Change thru – Enterprise behaviours – Responsibility, Accountability and Authority – Governance
ISSC TRANSITION MATURE ISSC RATIONALISE PROJECTS • Recast Continuous Improvement Projects • Conduct Service Life TRANSITION Evaluation • Establish Diesel LBTF TO FUTURE SUBMARINE INCORPORATION OF CAPABILITY FCD’s NOSE TO TAIL ENHANCEMENTS AND LOTE ONE BOAT IN FCD REFORM PROGRAM FOUR BOATS IN WA • SAFETY, RELIABILITY AND OPTIMISED LEVEL LOADED ASC SA MAINTENANCE AND WA PROGRAM • SUPPLY SUPPORT REFORM • STRATEGIC CONTRACTS • CULTURE AND CHANGE 10 YEAR OPERATING CYCLE MANAGEMENT AND 2 YEAR FCD CONFIDENCE CHECK POINT GET AVAILABILITY RIGHT THREE BOATS AVAILABLE TO NAVY FOUR BOATS AVAILABLE TO NAVY
ADDITIONAL OP CYCLE TRANSITION TO 10 YR OP CYCLE AND 2 YEAR TRANSITION FCD SINGLE BOAT TO FSM IN FCD IMPLEMENT SLEP AND RATIONALISE PROJECTS 2 YEAR FCD 10 YR OPERATING CYCLE THREE BOATS RELIABLY AND REGULARLY FOUR REDUCED COST OF OWNERSHIP $/MRD
CCSM Strategic Contracts MATERIEL SUSTAINMENT AGREEMENT TRANSITION MSA MATURE MSA PLATFORM SYSTEM INTEGRATOR PSI ISSC TRANSTION PERIOD MATURE PSI ISSC MISSION SYSTEM INTEGRATOR STRATEGY DEVELOP MS ISSC NEGOTIATE MS MSI ISSC TRANSTION MATURE MSI ISSC FOR MSI ISSC AND CONDUCT RFT ISSC PERIOD THALES SONAR SUSTAINMENT TRANSITION MATURE THALES CONTRACT SM ESCAPE AND RESCUE SYSTEM CONTRACT EXTEND EXISTING JFSRS CONTRACT SERS TRANSITION MATURE SERS CONTRACT DEVELOP NAVY NEGOTIATE SERS CONOPS CONTRACT SAFETY RELIABILITY AND OPTIMISED MAINTENANCE PROGRAM Collins Sustainment SUPPLY SUPPORT SYSTEM REFORM • Operational requirement being met CULTURE AND CHANGE MANAGEMENT • Logistics cost of ownership understood and managed SERVICE LIFE EVALUATION • Drive for ongoing efficiencies NAVY CONTINUOUS IMPROVEMENT PROGRAM AND RIZZO • Whole-of-Life Whole-of- Capability Management ALIGNED TRANSFORMATION Plan CCSM CAPABILITY MANAGEMENT PLAN FY12/13 FY13/14 FY15/16 FY16/17 FY17/18
ISSC Contracting model Transition Period Performance Period 1 Performance Period 2 TP TP YR1 YR2 PP1 PP1 PP1 PP1 PP1 Cycle YR1 YR2 YR3 YR4 YR5 continues PP2 PP2 PP2 until 2031 YR3 YR4 YR5 (Planned LOT) TCE Agreed for PP1 TCE Re-set for TCE Re-set for PP2 PP3 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013
Integrated ISSC Cost Model Performance Transition Period Period 1 Performance Period 2 TP TP YR1 YR2 PP1 PP1 PP1 PP1 PP1 YR1 YR2 YR3 YR4 YR5 PP2 PP2 PP2 YR3 YR4 YR5 TCE Agreed for TCE Re-set for TCE Re-set for PP1 PP2 PP3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Moderated by Cost Saving Cost Overrun Performance Framework Required PAIN ‘Mature’ Performance Levels 50:50 BCE TCE Actual Cost Performance 50:50 Drive for TCE TCE continuous Set Reset GAIN improvement and efficiencies 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Integrated ISSC Performance Model TransitionPeriod Performance Period 1 Performance Period 2 TP TP YR1 YR2 PP1 PP1 PP1 PP1 PP1 YR1 YR2 YR3 YR4 YR5 PP2 PP2 PP2 YR3 YR4 YR5 TCE Agreed for TCE Re-set for TCE Re-set for PP1 PP2 PP3 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 Superior Poor Performance Performance Required ‘Mature’ Performance Levels X% PROFIT Re-assess PMF X% Actual Performance ‘Transitional’ Performance Levels 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
CCSM Program Operational Transition Period and Saving Goals Performance Period 1 Performance Period 2 Performance Period 3 Saving levers TP TP YR1 YR2 • Optimised PP1 PP1 PP1 PP1 PP1 YR1 YR2 YR3 YR4 YR5 Maintenance program PP2 PP2 PP2 YR3 YR4 YR5 • Optimised Inventory PP3 PP3 PP3 • Optimised Supply YR3 YR4 YR5 Chain • Strategic PB based TCE Agreed for PP1 contracts TCE Re-set for • Culture Change PP2 TCE Re-set for PP3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 10 YEAR OPERATING CYCLE OPTIMISED INVENTORY AND 2 YEAR FCD NOTE OPTIMISED SUPPLY CHAIN Cost modelling and benchmarking underway OPTIMISED MAINTENANCE PROGRAM to verify CN10 $540-570M CN10 $450-480M CN10 $300-360M COST $90-95M per $75-80M per CCSM pa $50-60M per CCSM pa CCSM pa 2 BOATS 3 BOATS RELIABLY, MORE AVAIL 4 BOATS RELIABLY RELIABLY, REGULARLY 4 OCCASIONAL 3
Australian Submarine Enterprise Performance Goal 800 $/MRD 450 FY FY FY FY 12/13 13/14 14/15 15/16 Minimise cost Minimise Maximise Downtime Utility Drive to understand true Logistic Cost of Ownership through TP1 TP2 PP1 PP2 Continuous Improvement
Australian Submarine Enterprise Initiatives • Enterprise initiatives • Safety, Reliability and Optimised Maintenance Program Target • Whole-of-Submarine safety case MRD • Rizzo reforms – Maintenance Engineering • Reliability Centred and Condition Based Maintenance • Supply support reform • Logistics Support Analysis • Optimised Inventory FY FY FY FY • Optimised Supply Chain 12/13 13/14 14/15 15/16 • Strategic Contracts 800 • Make – Buy Discipline • Performance Based Incentive Contracts • 5 year rolling contracts • Productivity Improvement $/MRD • Labour utilisation and efficiencies • Culture Change • Responsibility, Accountability and Authority clarity • Outcomes focussed and performance driven • Enterprise Governance • Benchmarking 450 FY FY FY FY 12/13 13/14 14/15 15/16
Recommend
More recommend
