Thesis Presentation for the Degree of Master of Science in Asset Management Control at the Hogeschool Zeeland

Transcription

1 Thesis Presentation for the Degree of Master of Science in Asset Management Control at the Hogeschool Zeeland Prepared by ing. I.A. Khrystova Scientific Supervisors: Ir.P.J.T. Bakker, MSc Ir. Peter Van Gestel, MSc Expert Supervisor: ing. P.J. Kense, MSc

2 Contents Introduction Research topic; COTS background and COTS definition; Field of research; Research approach Statement of the problem; Research question; Research model and sub-research questions; Research strategy and study cases; Results from the literature review, criteria X Current policy summary, criteria Y Assessment of the study cases and assessment findings Conclusions and recommendations Reflection on research Questions 11 January 2012 Thesis presentation 2

3 Research topic Commercial off the Shelf (COTS) policy at DMO: consequences of implementing COTS products and components in naval military assets 11 January 2012 Thesis presentation 3

4 Definition of COTS COTS items are commercial items that have been sold, leased, or licensed in substantial quantities in the commercial marketplace and that are offered to the Government without any modifications. COTS benefits: Elimination of the need to invest in the development and support of unique items; Lower risks since the product is already established; Integration of new or latest technology (which is probably the most important benefit for Defence organisations); Reduced cycle time; Lower life cycle costs; Improved reliability and availability; Access to commercial support services. 11 January 2012 Thesis presentation 4

5 Field of research Director DMO Directorate of Materiel Policy Directorate of Planning and Control Directorate of Personnel& Organisation Transition Manager Directorate of Projects & Procurement Directorate of Weapon Systems Directorate of Logistics Agencies General Support Branch Projects Branch Procurement Branch Government Quality Assurance Division Sea Systems Branch Land Systems Branch Air Systems Branch Naval Maintenance & Service Agency National Supply Agency Woensdrecht Logistics Centre 11 January 2012 Thesis presentation 5

6 Statement of the problem Absence of an unified and streamlined COTS policy results in: Lack of clear definition what is understood under COTS and how to deal with this group of products; Form-Fit Function replacements are almost never available; Suppliers consider any electronic component as COTS for the systems being purchased in accordance to MIL SPEC ; Overpricing of COTS components; Lack of transparency how to trace OEM to buy COTS directly; Lack of clear replacement strategy due to a shorter life cycle of COTS and the rapid occurrence of obsolescence; Knowledge about COTS is fragmented and not centralized. 11 January 2012 Thesis presentation 6

7 Research question What are the consequences of implementing COTS products and components in naval military assets and what is the impact on the effectiveness of the maintenance process? 11 January 2012 Thesis presentation 7

8 Research model 11 January 2012 Thesis presentation 8

9 Subresearch questions 1 & 2 1. Which criteria for the effectiveness of the maintenance process with respect to performance preparation will be considered in view of implementing COTS products and components in naval military assets? 2. To what extent does the current policy comply with those criteria? 11 January 2012 Thesis presentation 9

10 Subresearch question 3 3. To which extent does the maintenance process in each of the study cases comply with the set of criteria derived from the research question 1? 11 January 2012 Thesis presentation 10

11 Subresearch question 4 4. What have we learned from the analysis results of study cases (Z1, Z2, Z3, and Z4) in view of the maintenance process effectiveness in relation to COTS? What are suggestions and recommendations for improving of the maintenance process effectiveness and of the COTS policy? 11 January 2012 Thesis presentation 11

12 Research objectives Surveying the expectations of the stakeholders; Understanding the issues which occur during the exploitation and maintenance phase of military assets in relation to COTS; Investigating backgrounds and causes of those issues; Examining if the current maintenance policy in relation to COTS items is effective (IST); Determining principles and selection criteria to structure and systematize the COTS process in order to mitigate risks related to the obsolescence character of COTS products; Analyzing the current process and make recommendations for Target (SOLL) situation. 11 January 2012 Thesis presentation 12

13 Study cases Mine Hunters (PAM): SPVDS Air Defence and Command Frigate (LCF):The Active Phased Array Radar(APAR) Hydrographic Survey Vessel (HSV): Integrated Bridge Management System Patrol ship(ps)integrated Sensors and Communication Suite (ISCS) 11 January 2012 Thesis presentation 13

14 Criteria X Supportability analysis, COTS ILS Support, Test equipment Support, COTS reliability, COTS maintenance and replacement strategy, COTS obsolescence strategy, COTS failure and fault registration, Technical development on the market COTS definition and COTS categories, Relationships with suppliers, COTS costs and method of control Business Engineering Programwide Contract Main delivery contract with supplier, Type of support contract with supplier, Contract surveillance and evaluation approach COTS price assessment, Risk identification approach and impact on maintenance, COTS technology insertion and its planning during the life-cycle Knowledge management, information sharing 11 January 2012 Thesis presentation 14

15 Current policy summary Logistics guideline Obsolescence management issued in September 2009 Has a temporary status until ILS plans are amended; Is based on the stipulations from the STANAG 4597 Obsolescence management and two TNO reports; Covers strategic objectives. Guidance MEDDMKM 23 version 1.0 issued in December 2003 Gives a broad overview of COTS issues; Pays attention to market knowledge, ISS contracts; Has seven appendixes and therefore is less conveniently arranged; Is written for the old structure of the organization. 11 January 2012 Thesis presentation 15

16 Criteria Y COTS Replacement strategy, Supplier responsibilities ILS support for COST replacement strategy; Obsolescence risk analysis Acquisition Sustainment ISS contract with supplier; Price indexation method for spare parts; Performance registration and analysis of obsolescence; COTS obsolescence problems and technical meetings; Link of COTS replacements with system modifications COTS components obsolescence method 11 January 2012 Thesis presentation 16

17 Assessment criteria CONTRACT BUSINESS 18 CRITERIA (X) 10 CRITERIA (Y) 18 ASSESSMENT CRITERIA ENGINEERING PROGRAM- WIDE 11 January 2012 Thesis presentation 17

18 Study cases assessment 18 Assessment criteria Check list questions Identify objectives Identify current standings Gap analysis template Create plan of actions Data analysis 11 January 2012 Thesis presentation 18

19 GAP analysis template example N Activity area Assessment criteria 1. Business 1.1. COTS definition and COTS categories 1.2 Relationships with suppliers 1.3 COTS costs and method of control Check list questions Is there any definition given regarding COTS products? Is only one contractor involved in the process? Is there any method applied on how to control costs of the COTS products? Study case Yes Partly No N/A Remarks and comments Z1 X Set up a process Z2 Z3 Z4 X X X Z1 X Set up a process Z2 Z3 Z4 X X X Z1 X Set up a process Z2 Z3 Z4 X X X 11 January 2012 Thesis presentation 19

20 Summary of findings 1 11 January 2012 Thesis presentation 20

21 Summary of findings 2 11 January 2012 Thesis presentation 21

22 Conclusions For the short term: Establish an internal COTS management policy ASAP taking into consideration existing policy documents and practices in the organisation; Revise Obsolescence management and the Guideline MEDDMKM 23; Make it obligatory to specify COTS requirements in requests for quotation (RFQ). For the long term: - Set up a COTS management/obsolescence group, which will be specialized in: - new developments in this domain; - program-wide approach; - technology insertion and eventual risks. - Look for an international cooperation. 11 January 2012 Thesis presentation 22

23 COTS policy in the scope of Total Quality Management 11 January 2012 Thesis presentation 23

24 Recommendations Definition: COTS in military systems are products and components which are : developed in accordance to the latest technological achievements, integrated in military assets without or with minor modifications; having limited visibility into reliability and frequency of their new updates; creating interdependencies. Considerations: COTS require a proactive approach during development, acquisition, and being very crucial during the exploitation phase of military assets; COTS proactive approach imply strong policies from the side of suppliers and organizations for: planning of COTS replacements; mitigating of COTS obsolescence issues, indicating financial consequences; specifying COST support elements in contracts. In order to achieve effective maintenance process for the naval military assets considering use of COTS products and components, minimum 75% of the criteria specified for the assignment of the study cases are to be met: Effective maintenance process = f (Business, Engineering, Contract, Programwide Activities and Criteria) 11 January 2012 Thesis presentation 24

25 Tactical recommendations 19 recommendations 47 recommendations Business Engineering Programwide Contract 25 recommendations 23 recommendations 11 January 2012 Thesis presentation 25

26 COTS life cycle model 11 January 2012 Thesis presentation 26

27 Reflection on research This research is facing a challenge; The whole process is a learning loop whereby the abstract theory has been tested in practice; The scope of the research was very ambitious; It was an intention to investigate how the obsolescence management has been set up by other NATO countries; This research is a qualitative assessment aimed at process; A major point to conduct a quantitative pilot study investigating financial consequences of COTS usage 11 January 2012 Thesis presentation 27

28 Questions 11 January 2012 Thesis presentation 28