Connecting CBM+ to the Supply Chain Presentation

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1 Connecting to the Supply Chain Presentation AVNIK Defense Solutions, Inc. / Valu-Lytics, Inc. Contains AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

2 Agenda Purpose Propose Methods to Connect to the Supply Chain Outline Concepts for Consideration Benefits from a Supply Chain Perspective Materiel Enterprise Engine for Innovation (EFI) Path Forward

3 AMRDEC Diagnostics to Prognostics Remaining Useful Life (RUL) Process Prognostic Early Warning is achieved thru Raw Data Collection, Feature Extraction, Condition Indicators (CIs), and OPTEMPO. Supports Supply Chain Optimization.

4 The Army Class IX Supply Chain SUPPLY DEMAND RDA Wholesale Retail Unit Mission Demand Reverse Logistics Forecast Actually Used Current and Potential Data Opportunities Across the Enterprise

5 Benefits of Connecting to Forward Supply Chain = Early Warning Anticipatory requisitioning for proactive maintenance Supply Forecasting - Readiness Based Sparing (RBS) Reduced Enterprise Requirement Objective (RO) for Cost-Wise Readiness RDA Wholesale Retail Unit Mission Demand Reverse Logistics Contributes to Achieving Cost-Wise Readiness AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

6 Benefits of Connecting to Reverse Pipeline RDA Wholesale Retail Unit Mission Demand Reverse Logistics = Early Warning Improve DLR induction forecast Forecast consumable Class IX requirements maintenance workload Enable synchronized closed loop supply chain for Maintenance Repair & Overhaul (MRO) depots Contributes to Synchronized Retrograde Process AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

7 Benefits of Connecting to Demand Signal Capture consumption/replacement data at unit Adopt point-of-effect demand segmentation Forecast Demand = f (Mission Based Forecasting + Intermittent Demand + ) Enable Readiness Driven Demand Network (RDDN) - relate resources to A O RDA Wholesale Retail Unit Mission Demand Reverse Logistics Contributes to Readiness Driven Demand Network (RDDN) AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

8 The Benefits of Connecting to the Supply Chain Contributes to Achieving Cost-Wise Readiness Forward Supply Chain Contributes to Readiness Driven Demand Network Demand Signal RDA Wholesale Retail Unit Demand Contributes to Synchronized Retrograde Process Reverse Logistics Reverse Pipeline Benefits AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

9 Connecting to the Supply Chain Improved Forecasting Improving Forecast Accuracy: Reduces Forecast Errors, Increases Readiness, Reduces Excess, and Minimizes Burden

10 Quantifying the Benefits Metrics Forward Supply Chain Reverse Pipeline Demand Signal Readiness Return on Net Assets Operational Availability Materiel Availability Backorders Forecast Error Metrics Forward Supply Chain Reverse Pipeline Demand Signal Readiness Return on Net Assets Materiel Availability Inventory (RO) Inventory Value/Aircraft Inventory Turns Excess Forecast Error READINESS INVENTORY AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

11 Quantifying the Benefits (Cont d) Metrics Forward Supply Chain Reverse Pipeline Demand Signal Workarounds Cannibalization Controlled Substitution Local Purchase Fabrication Swapping Forecast Error Burden AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

12 How might one design, test, and pursue connecting to the supply chain? Establish a Materiel Enterprise Engine for Innovation (EFI). AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

13 Materiel Enterprise Engine for Innovation (EFI) An advanced analytics test bed for experimentation and evaluation of innovative ideas and concepts for multiple classes of supply Concept to Reality Recommended Test Bed at AMRDEC Diagnostics Prognostics Laboratory AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

14 Path Forward Develop the analytical architecture, implementing technologies, and supporting processes as recommended by OSD (LM&R) (MPP) for MBF. Propose an organizational construct for a Materiel Enterprise EFI to test and evaluate Catalysts for Innovation, including, recommended by the NRC BAST Report. Incorporate Mission Based Forecasting (MBF) and Associated Metrics as part of the Network Integration Evaluation (NIE) FY16. AVNIK Defense Solutions, Inc. and Valu-Lytics, Inc. Proprietary Information

15 Contact Info AVNIK Defense Solutions, Inc. Woman Owned Small Business (WOSB) Michele K. Platt, President/CEO Root cause analysis Data-driven analytics > Information Repeatable verified design processes Diagnostic Condition Indicators (CI) Prognostic Remaining Useful Life (RUL) Signal processing / machine learning / optimization Modeling & Simulation Hardware-in-the-loop (HWIL) testing Advanced Windchill Quality Solutions (WQS) modeling Valu-Lytics, Inc. Service Disabled Veteran Owned Small Business (SDVOSB) Tom McLaughlin, President Dr. Greg Parlier Forecasting Methods & Statistical Analysis Inventory Theory Queuing Theory Network Flow & Optimization Modeling & Simulation Strategic Analytics

16 Backups

17 AVNIK / Valu-Lytics Capabilities ) Woman Owned Small Business (WOSB) Engineering Services Programmatic, Technical and Logistics Background Brigade Aviation Maintenance Officer(s) (BAMO), CW5, USA Ret Army Aviation - PC/Tech Supply Interface with ALC Wholesale Supply SMEs Digital Source Collector (DSC) Diagnostics/Prognostics CAISI/VSAT Decision Support Tools Strategic Planning Concept Dev & Req Analysis Systems Design/Eng/Int Test & Evaluation Integrated Log Support (ILS) Acq & Life Cycle Management Education PhD Electrical Engineering MS Systems Engineering MBA BS Service Disabled Veteran Owned Small Business (SDVOSB) Mission - Creating Value thru Analytics Background Nearly 100 Combined Years Active Duty Commissioned Military Service HQDA and OSD Staff Battalion Commands Assoc. Professor, West Point Test Engineer Aviation Battalion Supply Officer Senior Service Schools Private, Public, and FFRDC Experience Education PhD Systems Engineering MS (Operations Research) MBA Focusing on Supply Chain Engineering Mission Based Forecasting Intermittent Demand Forecasting Readiness Based Sparing (ME RBS) Dynamic Strategic Logistics Planning Performance Based Logistics Conditioned - Based Maintenance

18 Other Supply Chain Initiatives Transforming U.S. Army Supply Chains Strategies for Management Innovation by Greg H. Parlier (2011) Dynamic Strategic Logistics Planning Enterprise Integration and Transformational Change Sustainment Readiness Levels (SRLs) PBL/CLS Management Innovation as a Strategic Technology SM OSD (LM&R) (MPP) Task: Maintenance Value Chain Mission Based Forecasting (On-Going) Aligning supply management with maintenance planning Demand signal driven Class IX forecasting MBF Readiness Levels for post-milestone C Sustainment Extending MBF to other platforms and all services National Research Council, Board on Army Science and Technology Report: Force Multiplying Technologies for Logistics Support to Military Operations (2014) Rebuilding analytical capacity for Army Logistics Synchronized retrograde process Connect CBM to the Supply Chain Sustainment Maturity Model (Appendix G) Engine for innovation (EFI) (Appendix F)

19 Odds of Failure Margin 2 hrs Margin 4 hrs Margin 8 hrs Other CBM Initiatives CECOM Task: Diagnostics/Prognostics for Avionics Components Risk Reliability Centered Maintenance (RCM) Reliability, Availability, Maintainability, and Cost (RAM-C) Diagnostics / Prognostics Remaining Useful Life (RUL) Modeling & Simulation Verification & Validation Processes Enterprise Product Data Management (epdm) Flight Hours (hrs) Embedded Global Positioning System/Inertial (EGI) CECOM Task: Dynamic Toolbox for Maintenance, Logistics, and Data Integrity Maintenance Tracks Maintenance/readiness by platform, by location; Platform Documents (DA Form 2410) and Platform History (DA ). Logistics Center - Tracks LRU by Work Unit Code (WUC) & Serial Number, Bad Actors, Mean Time Between Failure (MTBF), Remaining Useful Life (RUL). Data Integrity - Verifies data to Army Regulations, Technical Manuals. Global - Prognostics Indicator Reliability Logistics System (G-PIRLS) AMCOM/PEOAVN Task: Diagnostics/Prognostics for Structural Components Health Monitoring for Crack/Corrosion Detection Isolation/Location Characterization Prognostics/Remaining Useful Life (RUL) Finite Element Modeling (FEM)

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