2. Who is SRA?
• A leading provider of technology and strategic Our Vision:
consulting services and solutions
SRA aspires to be the
• Serve public and private‐sector clients in world’s best company in
the national security, civil government, and everything we do,
global health markets guided by our
unwavering commitment
• Operations throughout the U.S. and Europe to honesty and service.
• FY09 revenue of $1.65B – 88% as a prime contractor
Our success is measured
91% win rate on recompetes by the value we bring to
our clients and
• Publicly traded company (NYSE: SRX) stakeholders, the
careers we offer our
• Founded in 1978; a deeply embedded culture employees and the
focused on creating real value for customers contributions we make
• Employer of choice for 6,900+ employees to our local and global
communities.
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SRA PROPRIERTARY
3. SRA Market Demands
Intel Counterterrorism Cyber PBL Performance Based Health IT
Logistics Management
Counterterrorism Cyber attacks DoD spending on PBL is Government to address the
remains top Justice continue to grow expected to continue rising cost of health care
Department concern growing at a rate of through significant
10.3% CAGR to reach investment in health IT
$7.4B by 2013
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SRA PROPRIERTARY
4. Force Generation Drives All
FORCE Generation Drives Demand-Side…. = Customer “Takt” Rate
….Requiring An Effective Supply-Side Response…. = PBL “Dynamics”
ARFORGEN PBL Layer I
COMPLIANCE
LA
ND
PBL Layer II
FO
R GE
CULTURE
N
1
Details of the multi-echelon supply
and value chain PBL Layer III
SEAFORGEN1
Informed lead times required by each “For ARFORGEN we
PROCESS
supplier Manufacture Brigade
1
Combat Teams”
EN
Critical paths and specific bottlenecks ….therefore what is:
RG
Make to Stock?
FO
Actual days required to support a Make to Order?
R
supply chain, versus unsupported Engineer to Order?
AI
estimates
1 Notional
Takt Time
Planning drumbeat: How often completed units NEED to come out the end of the pipe – 4
as established by customer demand
SRA PROPRIERTARY
5. SRA Recent Company Awards and Recognition
FORTUNE Magazine as One of the '100 Best Companies to Work For‘
(1999-2009)
Washington Technology Top 100
Three Alliance for Workplace Awards:
Excellent Place to Work | Health and Wellness Trailblazer | Ecoleadership
Best Place to Work in Northeastern Pennsylvania, Large Company (Scranton)
Bisnow Green Leadership Award
Association of Marketing and Communications Professionals’ Annual Awards
www.sra.com | SRA Headlines | SRA Annual Report
Black Collegian Top 100 Employer
Silver Sponsorship Appreciation Award for participating in the American Freedom
Foundation Festival to raise awareness for U.S. veterans
Quality-Assurance award for Era’s performance over a five-year period from the
ENVIRO organization
SRA selected as winner of Supply Chain Council’s 2009 Operational Excellence
Award
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SRA PROPRIERTARY
6. SRA Lifecycle Management Solutions Offerings
• Command & Operations Center Engineering
• Infrastructure Engineering and O&M Support
• Command and Control Systems Engineering
• Complex Systems Integration
• Directory Services
• Enterprise Architecture
• Worldwide Technical Support
• Network Managed Services
• Netcentric Enterprise Services
• Afloat Operations
• Automated Identification Technology
• Enterprise COTS Integration
• Identity Management & Cross‐Credentialing
• Lifecycle Management Support
• Integrated Logistics Support
• Industrial Base Support
• Transportation & Logistics Systems
• Modeling, Simulation and Analysis
• Multimedia Training & Curriculum Development
• Performance Based Logistics
• Cyber Security for the Supply Chain
• Supply Chain Management
• SETA Support
• Web Development & Enterprise Portals 6
SRA PROPRIERTARY
7. What LMS Does
Primary Products and Services
Logistics Optimization, Lifecycle Management, Supply Chain /
Sustainment Excellence
Performance Based Logistics (PBL)
Sensei Lean Masters, Six Sigma Master Black Belts, Certified
Instructors with the International Supply Chain Council
Project / Program Management Professionals (PMP)
OEM Logistics Services
Background
C-Level, VPs, Staff- and Line-level Managers, Logisticians
Ops Managers, Engineers, Planners, Buyers, Sales and Mktg…
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SRA PROPRIERTARY
8. LMS Supply Chain Optimization
8
® Registered Copyright of the Supply Chain Council, Inc. SRA PROPRIERTARY
PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING
9. LMS Value Proposition
GAP 1 closes through Past Experience
understanding Industry Standards and Norms
customer value Standards of Competitors
structure. Situational Requirements
GAP 2 closes through
greater commitment to Business Customer
Expectations GAP 1
customer value. Expectations
GAP 2
GAP 3 closes through
better system
alignment to reduce Customer Actual
Service GAP 3 Customer GAP 5 Customer
variability. Response
Decisions Service
GAP 4 closes through
reliable delivery of GAP 4
service.
Internal Customer
Perception Perception of
GAP 5 is closed by
of Service Service
reducing GAPs 1-4.
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SRA PROPRIERTARY
PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING
10. LMS Performance Alignment Model
Custo
me r Intima
cy
Reliability
Velocity
What level of Responsiveness
Flexibility
Research
Time
Supply Chain Enable
Make / Maintain
Value
Plan Design
Performance Cost Sell
Source
Amend
Material Assist
Will Impact Relate Return
t
Information
Deliver
m en
Op Integrate
ge
Customer, e ra
tio an
a
n Contract M
Supplier, al E c le
xce cy
Employee, l len L ife
ce e ss
oc
Pr
Behavior?
As-Is Should-Be 10
SRA PROPRIERTARY
PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING
11. Why LMS Exists –
To Help It’s Customers Become Faster, Better, Cheaper
•Responsive
•Agile
Performance
•Lean
Level
Loosely Coupled
Supply Chains
Agility “Flexibility and Adaptability”
Integrated
Supply Chains
Velocity “Integration at the interface”
Functional
Supply Chains
Effectiveness and Efficiency “Independent optimization”
Performance Based Lifecycle Management 11
SRA PROPRIERTARY
PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING
12. LMS Supply Chain Optimization
When you enable the
Enterprise to examine
its supply chain
processes, analysis
acting like Sonar,
helps profile
performance.
It is only then that the
real problems begin
to surface
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SRA PROPRIERTARY
PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING
13. LMS Time Trap Analysis
Order Cycle Time: 117 Days (Air)
ERP = 64 days
77.1 days or 66% 39.9 days or 34%
Notional (EPAT Portal)
15 days 37.8 days 14.3 days est 10 days 2 days est. 4 days 9 days 1 days 23.4 days est .5 day
1 2 3 4 5 6 7 8 9 10
Turn In SSA Transfer CCP Receipt CCP Transfer POE Receipt POE Transfer POD Receipt POD Transfer Stow Receipt Depot Transfer
SR2.1 DR2.4 D2.3 D2.4 DR2.3 DR2.4 DR2.3 DR2.4 DR2.3 DR2.4
12.8% 32.3% 12.2% 8.5% 1.7% 3.4% 7.7% .09% 20.0% .04%
Source: Phase 3 Cycle Time Analysis Source: EPAT (electronic portal) Source: EPAT
90% of Turn Ins were done under 20 days 700-800 items per TCN Data: 5/22/2008 – 6/6/2008
4-8 triwalls per pallet
Source: Phase 3 Cycle Time Analysis GTN shows can take up to 10 days to load Txns | Min | Max | Median | Stdev
3.75 hours to process asset Header create vs ship / receipt discrepancies Total: 290 1 1 1 0.0
1-4 days for pickup depending on loads Bagram: 52 1 1 1 0.0
3 Transportation Consolidation Points No Source to validate time from CCP to POE Balad: 238 1 1 1 0.0
have no RIC designation Estimates 1-3 days Kuwait: N/A 2 8 8 2.9
Loading Containers (20 and 40 footers)
Source: EPAT No Source
Big SSAs like WVE are loading containers
Data: 5/22/2008 – 6/6/2008 No data to determine dwell time
Txns | Min | Max | Median | Stdev May 12th Visit Depot Mr. Snow:
Source: CCP Quality Inspection
Total: 1153 2 9 4 2.9 • STO shipping discrepancies
TDC had 286 containers backlogged
Bagram: 53 2 9 9 0.9 • No validation prior to receipt trxn.
CCP receives 20-40 containers per day (24x7)
Balad: 339 2 2 4 0.8 • ERP records DDTP shipment
SRA CCP processes 20 containers during day
and 30 containers per night Kuwait: 759 2 8 8 2.9 regardless of error.
• No metrics to measure delivery
Therefore running about 14.3 days backlog Source: EPAT reliability against Depot req.
[286 / (50-30)] = 14.3 days Data: 5/22/2008 – 6/6/2008
No triwalls damaged during unloading Txns | Min | Max | Median | Stdev
40% boxes are sent to black hole (no doc)
Winner of the 30% sent straight to QSU serviceable warehouse Total: 353 1 9 11 3.7
30% unserviceables are receipted with proper doc STO discrepancies
SCC 2009 Award Bagram: 52 5 5 5 0.0
5 loaded flatbed trucks sat from 1330 to 1430 waiting for MHE Balad: 238 9 11 11 0.9
For Government owned containers are lower priority for unloading (notional) Kuwait: 63 1 1 1 0.0
Operational Excellence 13
SRA PROPRIERTARY
PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING
14. LMS Example of Aligning Metrics to Targets to Close Gaps
PERFORMANCE ATTRIBUTE (GOALS) AFMC KEY PERFORMANCE INDICATOR COMPETITIVE POPULATION GAP
Current Parity Advantage Superior
SCOR AFMC KPI From CHIP Opportunity
State 10% 15% 20%
139,128 TNMCS
Aircraft Availability 91.0% 91.9% 92.3% 92.8% 1.8%
Improve Material Hours
Availability
Time Definite Delivery
Reliability
MICAP Hours: MSD Items 141,862 MICAP 141,862 MICAP
709,309 638,378 602,913 567,447
(FY04 Q1-Q3) Hours Hours
EXTERNAL
Improve Customer
Satisfaction MICAP Hours: GSD Items 239,542 MICAP 239,542 MICAP
1,197,709 1,077,938 1,018,053 958,167
(FY04 Q1-Q3) Hours Hours
Customer Wait Time: MSD Items 4.19 3.87 3.71 3.55 0.32 Days 0.32 Days
Responsiveness N/A
Customer Wait Time: GSD Items TBD
Reduce End-to-End
Flexibility Source Cycle Time (AQLT=ALT+PLT)) 307 276 261 246 31 Days 31 Days
Cycle Time
Cost / Flying Hour: TOTAL
$13,258 $11,933 $11,270 $10,607 $1,989 $492,816,287
(AFTOC FY04 Actuals)
a. Cost / Flying Hour: Mission Personnel $4,765 $4,288 $4,050 $3,812 $715 $177,075,483
b. Cost / Flying Hour: Unit-Level
$1,426 $1,283 $1,212 $1,141 $214 $52,963,799
Cost Effective Supply Consumption, excluding AVFUEL
INTERNAL
Cost
Chain Operations
c. Cost / Flying Hour: AVFUEL $1,652 $1,487 $1,405 $1,322 $248 $61,391,470
d. Cost / Flying Hour: Depot-Level Maint
$2,594 $2,334 $2,205 $2,075 $389 $96,379,168
(not DLR)
e. Cost / Flying Hour: Contractor,
$2,822 $2,540 $2,399 $2,258 $423 $104,857,674
Sustaining, & Indirect Support
Asset N/A N/A $0
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SRA PROPRIERTARY
PRACTITIONER BASED – SOLDIER FOCUSED – ARFORGEN ENABLING
16. Integrate & Synchronize Acquisition, Logistics & Technology
• LCM GOALS RDT&E, PA $$$ OMA, AWCF $$$
Life Cycle Cost
– Overcome culture of “Acquisition COMMITTED $40B+ in
FY08
then Logistics” 100
– Reduce Life Cycle Cost
Shift
CUM PERCENT
– Optimized decision making ACTUAL FUNDS 28.6% of
SPENT the
– Affordability Benefits Army’s
budget
– Increased sustainability 0
A B C
YEARS
– Better Responsiveness to RDT&E Supportability
Customer Requirements
PRODUCTION
– Equip and Sustain OPERATION & SUPPORT
– Better, Faster, & Cheaper
What can we leverage to help address these problems?
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SRA PROPRIERTARY
17. What is Performance Based Logistics?
It’s all about It’s not about
Buying Results Buying Resources
Not
Provider Assumes Responsibility Buyer assumes responsibility for
Buyer wants a solution that works performance results
Using Performance Using Design
Not
Specifications Specifications
Defining the Process and
Buying a Solution or Methods to achieve a pre-
Not
Outcome determined course of
action
Assigning Assigning Responsibility
Responsibility to the Not to the Requiring
Provider Organization 17
SRA PROPRIERTARY
19. LMS PBLM Construct
PM Oversight & Accountability
(MONITORS) PERFORMANCE OUTCOMES
PSI (EXECUTES)
Product Support Product Support Program
Providers PBA Integrator PBA Manager PBA Customer
(PSP) (PSI) (PM)
MOU
F
Com DLA MACOMs
MOA L
PSP1
E
Com
Product Support
FMS
Organic SYSTEMS X
Supplier SYSTEMS Manager
I
PSP2 SUBSYSTEMS
B
SUBSYSTEMS (PSM)
AMC NATO
COMPONENTS I COMPONENTS
PSP3
L Monitors Other
I TRADOC
Performance Services
PSP4 PPP T
Y Other Data Other
Services Warehouse Agencies
(REDIRECTS)
Business Case Analysis (Benchmarking)
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SRA PROPRIERTARY
20. Senior Principal
Lifecycle Management Solutions
Bob Daniell bob_daniell@sra.com
732‐861‐1487
• 4 Years Regular Army 75th Rangers, 101st Airborne.
• 25 Years Commercial Experience – Operations P&L, IT,
Supply Chain P&L, Management Consulting.
• Johnson & Johnson, Dun & Bradstreet, Siemens, Barnes & Noble,
Supply Chain Associates, Total Plastics, Xelocity Ltd, SRA International.
• 6 Years implementing SCOR® best practices within DoD at operational levels.
(KC‐135, B‐52, A‐10, AFMC, PM CAS, CECOM LCMC)
• Has project led 18 SCOR SCE Implementations within industry and DOD.
(Siemens Warranty Management, B16 Class IX Retrograde)
• APICS Certified, L6S Master Black Belt, SCC Certified SCOR®/M, PBL Practitioner.
• Chairperson for SCOR® SOURCE Technical Development Committee 1998‐1999.
• Chartered the SCC SCOR® Lean Six Sigma Convergence Forum in 2003.
• Two‐Time Winner of SCC Award for Operations Excellence (1998 and 2009).
• Currently Life Cycle Management Technical Program Lead for SRA International.
• International SCM experience in Haiti, China, Singapore, Germany, New Zealand)
• Something Unique About Me....
Lacrosse Player, Founder, Coach, Referee, Author, Past Owner
1970
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® Registered Copyright of the Supply Chain Council, Inc. SRA PROPRIERTARY