FY14_Busines_Case_-_MSDIS.docx

748 Supply Chain Management Group

Material Support Division Information System (MSDIS)

Business Case

Version 1.6

4 August 2014

Based on Business Case Template Version 3.0, May 2012

Document Revision History

Table of Contents

Business Case: Material Support Division Information System (MSDIS) Version 1.5, 6 Nov 2013 ii Problem Statement Signature

Functional Sponsor: Date:

Kathryn J. Johnson, Brig Gen, USAF Director of System Integration

HQ USAF/A4I

Problem Statement Approval

IRB Chair: Date:

Elizabeth McGrath Deputy Chief Management Officer Office of the Secretary of Defense

Business Case: Material Support Division Information System (MSDIS) Version 1.5, 6 Nov 2013 1 Executive Summary The Material Support Division Information System (MSDIS) is a suite of seven modules that support Logistics Business Processes across the Air Force (AF) and Defense Logistics Agency (DLA). MSDIS provides an integration force between the Air Force Sustainment Center (AFSC) and Air Force Life Cycle Management Center (AFLCMC). This BCL applies to the following primary modules: Spares Requirements Review Board (SRRB) which supports all MAJCOM cost per flying hour (CPFH) factors, Depot Supply Chain Management (DSCM) which supports Air Force Materiel Command (AFMC) effectiveness, supportability and future outlook forecasting, Planning for DLA Managed Consumables (PDMC) which is the AF enterprise solution for forecasting deviations in historical demand trends, and Enterprise Materiel Solutions (EMS) for additional functionality (e.g., termination tracking, homeless item tracking, offline shipments and inter-service support reporting) used throughout the logistics community.

MSDIS provides a virtual organization that allows for management control and workflow auditability and measurement. MSDIS replaces a variety of site unique tools and capabilities with a robust web-based solution employed across the Enterprise supporting standardization and streamlining initiatives. MSDIS quick deploy and agile development principles meet the business office automation requirements that come from Continuous Process Improvement (CPI) initiatives and changing operating environments.

A lack of transparency and centralized repository exists between Commercial/ Government off-the-shelf (COTS/GOTS) applications (e.g., Microsoft Office Suite) which are not robust enough to handle complex office automation requirements and aged legacy systems (e.g., D200 Requirements Management System) which are too difficult and expensive to modify. MSDIS is designed to bridge this gap. This business need is seen across AF and DLA organizations related to demand/supply planning, engineering, financial management, resource management and materiel support functions. This business case specifically addresses four High Level Outcomes across the fore mentioned modules to solve needs identified in the FY14 Business Process Re-engineering (BPR) Assessment Form[footnoteRef:1]. [1: Non-logistics requirements for three MSDIS modules are separately identified on the AFSC Enterprise Information System (AEIS) BPR Assessment Form and Business Case. Future submissions will combine all logistics and non-logistics enhancements in a single submission.]

Enhancements identified herein will 1) improve demand/supply plans for AF and DLA managed spares, 2) increase analysis capabilities using “what if” and “deep look” functionality, 3) give key logistics processes greater adaptability to operational changes, and 4) replace non-standard processes with an enterprise automated business process built on best practices. Modernization efforts that aim to accomplish these outcomes are planned for the next 36 months and associated costs are reflected in the ROM Cost Estimate.

ROM Cost Estimate: Low: $2.6 million, Expected: $4 million, High: $8 million Introduction Purpose Obtain IRB Chair approval of the described Problem Statement. Full system assessment was conducted during the BPR Exercise for the FY14 National Defense Authorization Act (NDAA) Organizational Execution Plan (OEP) submission.

Background MSDIS has provided standardization and enterprise solutions during the stand-up of Air Force Global Logistics Support Center (AFGLSC) and is continuing those efforts with the new 5-Center construct. The proposed development and standardization initiatives for MSDIS support the usability and interoperability of the MSDIS system to transform DoD/USAF business processes. Headquarters Air Force (HAF) and Air Force Cost Analysis Improvement Group (AFCAIG) processes used to create all MAJCOM CPFH factors are supported through the SRRB module of MSDIS. Materiel forecasting and strategic supportability of depot maintenance activities throughout AFMC are accomplished with the Depot Supply Chain Management Analysis Tool (DSCM AT) module of MSDIS. The PDMC module is a systemic collaboration process between DLA and Air Force for future program changes of DLA managed piece parts and has been identified as the Air Force system of choice for PDMC management. Functionality in the EMS module provides standardization across the Air Force supply chain enterprise for key materiel support processes (e.g., inventory and resource management). In order to sustain the standardization elements of MSDIS on an Air Force Enterprise level, the following are critical elements: standard business rules, document repositories and record archives, financial auditability, and user access controls in a secure web-based and compliant environment. MSDIS continues to utilize modernized software, which is non-proprietary and customizable with focus on Government control, providing flexibility and support to business processes for the future.

Historically, status quo of the current capabilities often represented manual processes that are both time consuming and unreliable as it relates to the required data. MSDIS not only speeds the business process and decreases cost, but also delivers a more secure and agile service with an enhanced quality of process. MSDIS has transformed business processes from an inefficient batch process flow into a synchronized near real-time flow providing quicker access to accurate and near real-time information through streamlined data routing, thereby increasing the quality of decision making. The business processes are more visible, so each process and its operational quality are more transparent, better measured and better managed. While offering the return on investment of an integrated single system, multi-modules (SRRB, PDMC, DSCM AT, and EMS) allow MSDIS Suite to adapt business processes for each module without adversely impacting any of the processes of other modules. Standard interfaces and open standards are used to make it easier to integrate processes. MSDIS allows an accurate and centralized consolidation of information gathered from various sources. Following standard practices and abiding to industry standard processes and application development helps create a better integrated environment. This reduces the need for custom code, but also allows the use of software generic templates and interfaces with only minor configuration changes. An integrated system provides the most effective data and information storage, and thereby, improves the efficiency and reliability of business processes.

MSDIS provides a positive Return on Investment by bringing improvements in capability that are not currently available to the workforce. It provides intangible benefits tied to improved efficiencies at the current personnel staffing level such as:

DSCM AT module enhancements will enable those responsible for working supportability analysis and mitigation efforts to cover a larger number of parts each month, reducing the likelihood of previously unidentified shortfalls negatively impacting depot maintenance, repair, and overhaul operations as well as provide improved depot parts supportability assessments which will enable more efficient operations, and will ultimately decrease indirect depot costs:

· Ensure future parts problems are identified early

· Reduce the likelihood of previously unidentified shortfalls negatively impacting depot maintenance, repair, and overhaul operations

· Decrease the number of instances where a mechanic does not have the part needed on time and reduce the frequency of work stoppages due to missing repair parts/component parts

· Leads to increase rate of on-time deliveries from the depot

· These enhancements will decrease time spent on non-productive (indirect) activities, such as putting an asset into or pulling an asset out of “Awaiting Parts” (AWP) status and resulting in decreased indirect depot costs PDMC module enhancements will establish and automate data currently accomplished by manual processes resulting in a significant time savings:

· Decrease in manual manpower processing time which results in increased availability of personnel resources

· Establishes what-if processes and analysis leading to real time results

· Automated data feeds ensure data integrity by reducing the number of manual errors and entries leading to decrease in manual re-work SRRB module enhancements will provide standardization and increase of critical capability leading to financial and time savings:

· Process standardization and the ability to bring non-fly weapons systems leads to reduction in disconnects between Operations and Maintenance (O&M) funding and Working Capital Fund (WCF) authority projections by 7% and an estimated savings for non-fly obligations of $4.9M annually

· Having a systemic solution causes a dramatic decrease in manual re-work and effort resulting in a reduction of 4.9K man-hours annually EMS module enhancements will drive the standardization of business processes across the AF Supply Chain by implementing current Rapid Improvement Events (RIEs) which will focus on standardization of: budget narratives, termination actions, homeless NSN reporting, Offline Shipment tracking, D200 Computation Signatures, Workload (PR/MIPR/Screening) Assignment and Tracking, and Inter-service Support Reporting. Implementing these RIEs results in elimination of disparate and site unique business process tools across the Enterprise

· Allows for senior leader visibility and tracking to ensure uniformity across the AF Supply Chain

· Eliminates duplication of effort

· Provides real time access to system users across multiple time zones resulting in greater collaboration In one system, MSDIS promotes greater efficiencies by capturing and processing data from across the AF and DLA that would otherwise require significant manpower to analyze and report. MSDIS increases performance as measured by; standardized sustainment processes, time savings, new/improved collaboration, improved data accuracy, greatly improved sustainability forecasts all which support/ facilitate real time decision making across the Sustainment Enterprise.

MSDIS is currently hosted on the Hill AFSC ITS server located in building 1209 at Hill Air Force Base (AFB). The Hill Enterprise Data Center (HEDC) is the recognized Installation Processing Node (IPN) for Hill AFB and is located in building 1211. MSDIS has obtained cost quotes and has an approved CSRD to be re-hosted with the HEDC. The program office had previously requested a quote for re-hosting to Defense Enterprise Computing Center (DECC) located at Hill AFB in building 891, however we did not receive a quote. As a result of this Problem Statement non-concurrence, the program office has re-initiated contact with the DECC to obtain a quote for re-hosting Efforts are underway to complete a re-host of MSDIS to the HEDC by Spring 2015, in accordance with Air Force IT consolidation direction.

Business Case: Material Support Division Information System (MSDIS) Version 1.6, 4 Aug 2014 9 Problem Statement

“As-Is” Analysis The Problem

During the FY14 BPR assessment MSDIS Program Management identified the following problems which drive the need for further development and modernization of this information system: 1) COTS/GOTS solutions are not robust enough to meet the need, 2) aged legacy system are too difficult and expensive to modify, 3) disparate/site unique capabilities need to be replaced by Enterprise solutions for standardization and streamlining, and 4) continuous process improvement and a changing operating environment have created the need for new business office automation tools and capabilities.

Problem Description and Context From a strategic perspective, the problem areas identified negatively impact the Air Force and DLA’s ability to build demand and supply plans and perform critical materiel support functions for spare parts critical to keeping weapon systems operational. MSDIS is a primary analytic support tool and is integral to demand and supply planning functions across Air Force and DLA logistics activities.

The PDMC and DSCM AT modules currently build the End Item (EI) requirement baseline with input from various legacy systems (e.g., Automated Budget Compilation System (ABCS), D200F, Workload Review) and manual input of schedules and requirements for supportability (DSCM) and forecasting (PDMC) purposes. The Air Force does not currently have a single official data source for Bill of Materials (BOMs). As such, the PDMC and DSCM AT modules need functionality to extract BOM data from various systems (G005M, Maintenance Business System Modernization (MABSM), and Lean Depot Management System (LDMS)) and manually built Lists of Material (LOM) and supportability BOMs. Maintenance and supply communities do not effectively communicate organic repair requirements and capacity, including the ability to evaluate proposed changes to depot repair requirements and capabilities. There is no existing standardized process or system to facilitate strategic level supportability analysis for aircraft and whole engines. These conditions relate to the high level outcome of improved demand and supply planning.

The current SRRB application does not allow “what if” analysis throughout the process. This forces manual workarounds that are handled outside of the system which increases the possibility of human error. The current depot supportability environment does not provide the facilitation and automation of the information or processes needed to “deep look” into the primary causes of supportability challenges. These conditions relate to the high level outcome of improved analysis capabilities.

The current SRRB process only captures spares requirements for aircraft. The “non-fly” systems do budgeting based on prior year actuals and cannot be modified for known events. Further, the SRRB module is designed around aircraft that have adopted an organic sustainment philosophy. Introduction of new joint aircraft (e.g., F-35) with potential for hybrid sustainment philosophies (contract/organic/inter-service) will not work in the SRRB process today. These conditions relate to the high level outcome of increased adaptability to change.

There are many non-standardized business processes utilized across the Air Force for materiel management. This has resulted in site unique capabilities and solutions that make it more difficult to standardize processes and achieve needed efficiencies. Obtaining management signatures on D200 requirement computations is a manual, non-standardized business process that is filled with errors and inefficiencies. The workload assignment and tracking of Military Interdepartmental Purchase Requests (MIPRs) and materiel screening actions is a manual intense process that is inefficient and prone to human error. Management is not able to adequately monitor the health of the processes without tracking data. These conditions relate to the high level outcomes of standardized and streamlined operations.

Examination of the problem definitions results in identifying four common causes.

First, process owners’ familiarity with Microsoft Office products has resulted in trying to use these products to solve complex process problems, but being unsuccessful. For example, the SRRB process was originally designed around Microsoft Excel and Outlook. However, a significant amount of manual effort was needed to build the spreadsheets and there were versioning problems when weapon system configuration changes were collaborated across the Air Force. Another example is the tracking of MIPRs and materiel screening actions using Microsoft Access. Multiple problems have been encountered in sharing the databases across locations. .

Second, aged legacy systems cannot be modified to satisfy new processes. When the Air Force developed new processes for depot supportability (DSCM) and consumable support of DLA parts (PDMC), an assessment of existing Air Force legacy systems was accomplished to see if any could accommodate the new processes. It was determined none of the aged legacy systems could accommodate the new requirements.

Third, disparate and site unique solutions were developed to address the same business needs at different locations. As a result, non-standard processes were adopted across the enterprise and duplication of effort drove further inefficiencies. For example, each logistics complex is using different methods for bill of material reporting, workload collaboration and computation signatures.

Lastly, changes brought about by CPI, re-organization, and changes in the operating environment have driven a need to change business automation tools and solutions. For example, fielding new joint fighter aircraft with new sustainment philosophies will require changes in automated business processes. Further, CPI events related to the War on Excess parts drove process changes and corresponding changes in automated solutions.

The following table is shown to clearly articulate the current problem (“As-Is”) and the desired future state (“To-Be”) for MSDIS:

Root Cause Analysis The root causes for the variety of problems seen across all functional activities are as follows:

1. Lack of robustness in COTS/GOTS (e.g., Microsoft Office Suite) applications. Personnel are capable of using many of these applications; however the tools were not designed to support the more complex aspects of USAF mission. Joint use of these applications using share drives is an option, but requires Enterprise Information Technology Data Repository (EITDR) registration, certification & accreditation and significant documentation that far exceed the benefit that could be derived. Further, COTS/GOTS applications were not designed to manage the numerous data sets and millions of records required to adequately support the mission.

2. Difficulty and high expense of modifying aged legacy systems (e.g., D200 Requirements Management System). Many of the Air Force legacy systems are designed on old programming standards and infrastructures that are not easily adapted to the ever changing supply chain processes. These systems cannot be modified to add-on new web capabilities without redesign of the entire system, which is cost prohibitive. Further, standup of Enterprise solutions (e.g., ECSS and LIMS-EV) has resulted in policy that prohibits the modification and further development of these legacy systems that will be subsumed eventually. Personnel in the affected functions/areas do not possess the skill sets or resources needed to design and maintain web-based solutions that cater to their unique requirements as a gap measure until Enterprise solutions develop the full capability to help them perform their mission and support the warfighter.

3. Lack of information technology governance which enabled prevalence of disparate and site unique tools. This has been a long standing problem in the Air Force. Organization changes have been adopted to eliminate non-standard processes and IT solutions, and many of the site unique capabilities are being decommissioned in favor of Enterprise approved solutions. MSDIS is the approved Enterprise solution for many logistics and non-logistic IT requirements.

4. Lack of standardized and streamlined operations due to Logistics transformation initiatives and the ever changing DoD operating environment which result in constant changes to existing business practices. Each of these changes results in requirements for enhancement of the associated automated business solutions. This also creates difficulty in arriving at a resolved state with the information system.

Table 1 – DOTMLPF-P Constraints, “As-Is” State DOTMLPF-P Analysis was conducted at the System level. Analysis specific to an individual module will be annotated separately within the table as needed.

DSCM AT: AFPD 21-1, AFMCI 21-130, AFMCI 21-101, AFMCI 21-102, AFMCMAN 23-1, Centralized Asset Management's (CAM) Logistics Requirements Determination Process (LRDP) Guide and Handbook; PDMC: AFMCI 23-205; SRRB: AFI 23-120; EMS: AFMAN 23-110, AFMCMAN 23-1, AFMCMAN 23-2, DoD 4140.1R, AFMCI 20-102; AFSC 20-102 Supplement (in draft); DFARS 217.75; & AFI23-101 .

“To-Be” Analysis High-Level Outcomes (HLOs) Table 2a - HLOs

Table 2b – HLOs and Measurement Criteria

C: Details and formats of APS outputs

D: The solution is dependent upon APS data feed and file structure

C: Details and formats of BOM system

D: The solution is dependent up BOM data feed and file structure

C: Supply uses multiple End Item forecasting methods/tools

D: The solution is dependent upon standardized data feeds and processes

C: Non-standard processes across aircraft and whole engines

D: The solution is dependent upon detailed business rules and required data feeds

C: Limited window between SRRB cycles to develop code

D: The solution requires formation of a “what if” IPT to develop the detailed logic and business rules

C: Non-standard processes across complexes and functions

D: The solution is dependent upon enterprise approved and documented business rules

C: Non-fly single managers are not centrally located at complexes with fly single managers

D: The solution requires formation of a non-fly IPT to develop the process and detail business rules

C: Sustainment strategies still be decided

D: The solution will need data from the OEM for initial requirements forecasting until 8 quarters of actual data is available

C: TDY funds are limited

D: The solution is dependent upon holding the IPT meetings and agreeing upon and enterprise requirement and solution

C: Changes in IT governance are slowing CSRD approval process

D: The solution is dependent upon obtaining an approved CSRD in time to develop in FY14

C: Changes in IT governance are slowing CSRD approval process

D: The solution is dependent upon obtaining an approved CSRD in time to develop in FY14

Business Case: Material Support Division Information System (MSDIS) Version 1.5, 6 Nov 2013 12 Business Process Re-Engineering (BPR) Table 3a – Business Outcomes

Table 3b – Business Outcomes and E2E Alignment (“To-Be” State)

Forecast Demand

Collect and Analyze Requirement

Forecast Demand

Populate Asset Data Elements

Forecast Demand

Perform Inventory Management Collect and Analyze Requirement Populate Asset Data Elements Update Asset Record

Business Case: Material Support Division Information System (MSDIS) Version 1.5, 6 Nov 2013 15 Table 3c – Business Outcomes and Measurement Criteria (“To-Be” State)

C: Constrained budgets

D: The solution is dependent upon data feeds from new systems

C: changing data sources and processes

D: The solution is dependent upon capturing accurate and timely data

C: Ops tempo is constantly changing to meet real world events

D: The solution needs variable data that is timely and accurate

C: Constrained manpower budgets

D: The solution is dependent upon human resources to run the deep look process

C: Non-standard organizations

D: The solution requires a standard non-fly process

C: Program changes associated with a new weapon system

D: The solution is dependent upon good data

C: TDY funds

D: The solution is dependent upon an agreed upon enterprise requirement

C: Changing IT governance delays CSRD approval

D: The solution is dependent on an approved CSRD

C: Changing IT governance delays CSRD approval

D: The solution is dependent on an approved CSRD

Business Case: Material Support Division Information System (MSDIS) Version 1.5, 6 Nov 2013 18 18 DOTMLPF-P Impact, “To-Be” State Table 4 – DOTMLPF-P Impacts, “To-Be” State

DOTMLPF-P Analysis was conducted at the System level. Analysis specific to an individual module will be annotated separately within the table as needed.

DSCM AT: AFPD 21-1, AFMCI 21-130, AFMCI 21-101, AFMCI 21-102, AFMCMAN 23-1, Centralized Asset Management's (CAM) Logistics Requirements Determination Process (LRDP) Guide and Handbook; PDMC: AFMCI 23-205; SRRB: AFI 23-120; EMS: AFMAN 23-110, AFMCMAN 23-1, AFMCMAN 23-2, DoD 4140.1R, AFMCI 20-102; AFSC 20-102 Supplement (in draft); DFARS 217.75; & AFI23-101 .

Recommended Course of Action Obtain approval of the Problem Statements by the Investment Review Board (IRB) Chair, allowing implementation and resolution of problems described in Section 3.0 above.

Rough-Order-of-Magnitude (ROM) Cost Estimate ROM Cost Estimate: Low: $2.6 million, Expected: $4 million, High: $8 million image1.jpeg