Logistic support

SOLE – SOLE – The International Society of The International Society of LogisticsLogistics

Introduction to Logistics

and

Integrated Logistics Support (ILS)

Presented to University of St. Thomasby Chapter 6 District 6 Minneapolis – St. Paul

April 30, 2003

Logistics in HistoryLogistics in History

Historically, Army quartermasters have been charged with:

Examples:

• Feeding soldiers (consumables, preparation service)

• Providing fodder for horses (foraging, transportation)

• Procuring uniforms, equipment, weapons, and ammunition (supply and repair management)

• Supporting aircraft, ships, tanks, guns, vehicles (fuel, spare parts, repair, transportation, storage, interoperability)

Scope: Manufacturing vs. After-SaleScope: Manufacturing vs. After-Sale

75 % of U. S. employment is services:

21 % of employment is goods producing:– Construction

– Manufacturing

4 % of employment is extraction:– Agriculture

– Mining

Source: Statistical Abstract of the United States,

1997 for 1990

Emphasis: Emphasis: Products vs. SystemsProducts vs. Systems

17.8 % of Gross Domestic Product is manufacturing (1990):

– Consumables

– Non-repairable products

– Repairable (consumer) products

– Repairable (industrial, complex) products• Mobile (self-propelled) vs. Installed• Custom Engineered vs. standard product

Product Life CycleProduct Life Cycle

• Product life cycle showing net profit highest in mature phases.

Systems StructureSystems Structure

• System (prime contractor)– Subsystem - product (subcontractor level)

• Sub-Subsystem– Component

» Replaceable Assembly / Part

» Application-Operating System / Software

Support Concepts -Support Concepts -

• Product Life Cycle Management

• Life Cycle Cost (LCC)

• Service Engineering (products)

• Integrated Logistics Support (ILS)

• Logistics Engineering (complex systems)

Product & System Product & System Life Cycle ManagementLife Cycle Management

• Pre-Concept

• Concept

• Demonstration and Evaluation

• Full Scale Development

• Production and Operation

• Phase Out

• Development • Introduction

• Growth

• Maturity

• Decline

SystemProduct

Concept - Life Cycle Cost (LCC)Concept - Life Cycle Cost (LCC)

• (1) All costs associated with the system life cycle,

• (2) The total cost of acquisition and ownership over the life cycle,

• (3) Approach to costing that considers all costs, and an

• (4) Approach whereby the value of different concepts can be made by comparison of different LCC estimates and the concept with the minimum LCC is preferred.

Concept - Support ElementsConcept - Support Elements

Support Concepts – Elements (cont’d)Support Concepts – Elements (cont’d)

Integrated Logistics Support (ILS)Integrated Logistics Support (ILS)

“A disciplined, unified and iterative approach to the management and technical activities

necessary to (1) integrate support considerations into system and equipment design; (2) develop

support requirements that are related consistently to readiness objectives, to design, and to each other; (3) acquire the required support; and (4)

provide the required support during the operational phase at minimum cost”.

Logistics EngineeringLogistics Engineering

“Those basic design related functions implemented as necessary to meet the objectives of ILS.”

Initial definition of system support requirements

Development of design input criteria

Evaluation of alternative design configurations

Determination of resource requirements

Ongoing assessment of support infrastructure

Logistics Definition #1Logistics Definition #1

“The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements”.

The professional organization for individuals who have an interest in logistics management.

Logistics Definition #2Logistics Definition #2

“The art and science of management, engineering, and technical activities concerned with requirements, design, and supplying and maintaining resources to support objectives, plans, and operations.”

Logistics Definition #3Logistics Definition #3

“Logistics is the science of planning and carrying out the movement and maintenance of forces. In its most comprehensive sense, those aspects of military operations which deal with: (a) design and development, acquisition, storage, movement, distribution, maintenance, evacuation, and disposition of materials; (b) movement, evacuation, and hospitalization of personnel; (c) acquisition or construction, maintenance, operation, and disposition of facilities; (d) acquisition or furnishing of services.”

North Atlantic Treaty Organization (NATO)

AffordabilityAffordability

• Affordability is made up of:– Schedule

• Affects Cost when compressed

– Performance• Affects cost by quality required

– Cost• The driver in affordability

AffordabilityAffordability

• Where are the major costs a product Life Cycle– Design/Development

– Procurement/Manufacture

– Support

– Disposal

AffordabilityAffordability• Costs of Life Cycle

AffordabilityAffordability

• Methods of estimating costs– Life Cycle Cost (LCC)

• Costs to design, manufacture, use and dispose of a product

– Total Ownership Cost• LCC plus costs to recruit, train and support the

product operating personnel

• Design to Cost– Working to the amount of funds available

AffordabilityAffordability

AffordabilityAffordability

• Support Factors Creating Costs– How many products

– Where and how many sites

– How many products at each site

– How is repair accomplished

– How many people are needed to repair

– What training is needed by the maintenance people

– What repair parts are needed and how many

– How fast can failed units be repaired

– Repair/support equipment is needed

AffordabilityAffordability

• How is support designed into the product– Analysis of the design for:

• Maintainability – How fast can it be repaired• Reliability – How long will it work without failing• Availability – Is it available when needed

AffordabilityAffordability

• How is the lowest LCC cost achieved– Tradeoff studies

• Design tradeoff– For ease of repair and cost of repair parts

• Manufacturing tradeoff– For less environmental cost at disposal

• Support tradeoff– Where to repair and at what level (O,I,Depot)

AffordabilityAffordability

Life Cycle Cost

System Effectiveness

• Imbalance between “cost” and “System Effectiveness”

Research & Development

COSTS

Production & Construction

System Operation

Maintenance & Support

Retirement & Disposal

Performance & Effectiveness

Reliability, Maintainability & Supportability

Production & Disposability

System Quality

Other Technical Factors

AffordabilityAffordability

• Extra costs created by lack of support analysis– Peculiar support equipment

– Special Tools

– Test equipment

– Training

– Support of support equipment

AffordabilityAffordability

• Conclusion– Supportability is a main factor in the cost of

owning a product

– The most efficient way to get to the lowest LCC is analysis of the design

Design and SupportabilityDesign and Supportability

The tale of four vehicles

Measures of LogisticsMeasures of Logistics

• Reliability

• Maintainability

• Availability

ReliabilityReliability

• How often a thing breaks. Expressed in failures/unit of measure.

• Examples– 385 failures/million hours of operation

– 68 failures/100,000 miles

– 7 failures/million cycles

MaintainabilityMaintainability

• The ease with which an item is repaired

• Includes time to diagnose the problem, fix the problem and verify the fix

• Usually expressed as mean time to repair

AvailabilityAvailability

• The amount of time a piece of equipment is available for use.

• Availability affected by– Time equipment in for service

– Time equipment in for repair

Availability & Support CostAvailability & Support Cost

• High Reliability +

• High Maintainability =– High availability

– Low support cost

Technology ChangesTechnology Changes

• Emissions standards necessitated– Fuel injection

– Electronic distributors

– Hot spark plugs

– Three and four valves/cylinder

– Mass air flow sensors

– Oxygen sensors

– Exhaust gas regulators

Scheduled MaintenanceScheduled Maintenance ComparisonComparison

• 1978 Omni (1.7 Liter)• Change Coolant 30 K miles

• Change Oil & Filter 3 K miles

• Change Air Filter 30 K miles

• Change Spark Plugs 15 K miles

• Ignition Timing 15K miles

• Replace PCV 30 K miles

• Service Trans 15 K miles

• Plug Wires As needed

• Replace Belts As needed

• Replace Timing Belt60 K miles

• Change Fuel Filter 15 K miles

• 1998 Cirrus (2.0 Liter)• Change Coolant 36 K miles

• Change Oil & Filter 3 K miles

• Change Ail Filter 30 k miles

• Change Spark Plugs 30 K miles

• Ignition Timing N/A

• Replace PCV 30 K miles

• Service Trans 15 K miles

• Plug Wires 60 K miles

• Replace Belts 60 K miles

• Replace Timing Belt60 K miles

• Change Fuel Filter N/A

Cost of Repair (Fuel System)Cost of Repair (Fuel System)

Vehicle Component Pt Cost Hours Lbr Rate Lbr Cost Tot Cost

1978 Omni, Carb Fuel Filter $ 3.00 0.3 $94.00 $ 28.20 $ 31.20

1.7 Liter, 4 Cylinder Fuel Pump $ 50.00 0.5 $94.00 $ 47.00 $ 97.00

1998 Cirrus, InjectFuel Filter $ 27.00 0.7 $94.00 $ 65.80 $ 92.80

2.0 Liter, 4 Cylinder Fuel Pump $ 215.00 1.4 $94.00 $ 131.60 $ 346.60

1998 Escort, Inject Fuel Filter $ 16.00 0.6 $94.00 $ 56.40 $ 72.40

1.9 Liter, 4 Cylinder Fuel Pump $ 255.00 0.8 $94.00 $ 75.20 $ 330.20

1998 Cavalier, Inject Fuel Filter $ 19.00 0.7 $94.00 $ 65.80 $ 84.80

2.2 Liter, 4 Cylinder Fuel Pump $ 457.00 1.8 $94.00 $ 169.20 $ 626.20

Fuel System Maintenance Fuel System Maintenance Cost Over Life of VehicleCost Over Life of Vehicle

Vehicle Task Cost Freq Total Cost

1978 Omni Change Fuel Filter $ 31.20 1/15 K miles $ 310.20

Change Fuel Pump $ 97.00 1/75 K miles $ 194.00

$ 504.20

1998 Cirrus Change Fuel Filter $ 92.80 1/150 K miles $ 92.80

Change Fuel Pump $ 346.60 1/150 K miles $ 346.60

$ 439.40

1998 Escort Change Fuel Filter $ 72.40 1/30 K miles $ 362.00

Change Fuel Pump $ 330.20 1/150 K miles $ 330.20

$ 692.20

1998 Cavalier Change Fuel Filter $ 84.80 1/30 K miles $ 424.00

Change Fuel Pump $ 457.00 1/150 K miles $ 457.00

$ 881.00

When Things Go WrongWhen Things Go Wrong

Lens separated from $75.00 $47.00 $122.00

fog lamp

Heat/AC valve broke $150.00 $600.00 $750.00

Premature spark plug $48.00 $200.00 $248.00

wearout

Headlight gasket $300.00 $94.00 $394.00

separation

Fault Parts Cost Labor Cost Total Cost

Automotive Design TrendsAutomotive Design Trends

• Longer vehicle life (150 K miles)

• High reliability for critical components

• Low reliability for non critical components

• Minimal preventive maintenance

• Built in diagnostics

• Fewer repair parts, more assemblies

• Poor maintainability

Effect on ConsumersEffect on Consumers

• Few critical component failures

• Several non critical component failures

• High parts cost

• High labor cost

• Support costs escalate after 100k miles

What can we do?What can we do?

• Be aware of hidden vehicle support cost

• Read consumer type evaluations

• Look for accessibility of components

• Talk to mechanics

• Ask dealer for scheduled maintenance costs.

• Complain about support costs

Logistics Engineering and Support Engineering

Questions

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