Master Thesis. WSM in a PBL environment. The Role of the NL DMO Weapon System Department. Petrick Spitters

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1 WSM in a PBL environment The Role of the NL DMO Weapon System Department Petrick Spitters

2 Content Why this research? -> Problem Indication Research Objective and Research Question Research Approach Diagnosis Literature Study Analysis Results Problem Definition Terms of Reference Design Design Approach Case Study (Joint Strike Fighter) Reflection with Stakeholders Conclusion and Recommendations 2

Approach Diagnosis Literature Study Analysis Results Problem Definition

3 Why this research? Increased interest and involvement OEM in sustainment Joint Strike Fighter (JSF) program Performance Based Logistics (PBL) support concept Estimated JSF sustainment costs: NL F-35 Euro 11,3B (30 yrs) Defense budget cuts and focus on reducing sustainment costs Increased interest for Weapon System Management No major Weapon Systems within NL MOD with PBL support concept 3

Performance Based Logistics (PBL) support concept Estimated JSF sustainment costs: NL F-35 Euro

4 Problem Indication PBL indicates changes in: The role of the government transaction management to performance management transfer of product support functions (traditional to PBL environment) structural and cultural changes are required assignment of responsibilities processes and procedures knowledge standing issues with WSM within the NL MOD AMC requirements to effectively control capital assets Research Objective and Research Question 4

changes are required assignment of responsibilities processes and procedures knowledge standing issues with

5 Objective and Research Question Objective Provide recommendations to NL DMO for organizing weapon system departments responsible for air-based weapon systems in a PBL environment during the sustainment phase in order to control weapon system cost-effectiveness. Research Question How to organize a weapon system department within NL DMO for an airbased weapon system with a PBL support concept during the sustainment phase capable of controlling weapon system cost-effectiveness? 5

6 Research Approach Asset Management Control Approach Analysis Results Performance Based Logistics Approach Problem Indication Problem Definition Case Study F35 weapon system organization Organization Theory Conclusions & Recommendations Problem Indication Terms of Reference Reflection with Stakeholders Field Study NL MOD Design Diagnosis 6

system organization Organization Theory Conclusions & Recommendations Problem

7 Literature Diagnosis Review and Field Study NL MOD - WSM policy and approach - Structure Materiel Logistics Organization - Military Aviation Requirements - NL MOD restructuring 7 - Vision NL DMO on PBL

8 Analysis Results (1) Controlling Weapon System Cost Effectiveness 8

9 Analysis Results (2) NL MOD Weapon System Management WSM approach -> LCM Systems Depends on organization goals, process and environment environment -> complex strategy -> controlling weapon system cost-effectiveness process -> reciprocal interdependence (complex) Requires horizontal organization structural configuration Transfer of functions from government to PBL provider Effective management requires balanced responsibilities and authority matched to organization function Paradigm: Je bent er van, dan ga je erover WSM Knowledge -> sustaining in PBL envrionment 9 Organization Culture -> Performance Management

structural configuration Transfer of functions from government to PBL provider Effective management requires balanced responsibilities and authority

Design WSM functions vs WSM Responsibility and authority Transfer of

10 Analysis Results (3) Weapon System Departments Military Aviation Requirements are leading Military Type Certificate holder -> Type Design WSM functions vs WSM Responsibility and authority Transfer of functions to PBL provider WSM role as System Manager ( normsteller ) in PBL construct 10

11 Problem Definition Effective control Weapon System Cost Effectiveness in existing WSM organization is limited Organization structure not adapted to WSM environment and WSM process Responsibility and authority in the WSM field are not in balance tri-partite consultation structure is not adapted to PBL environment Insufficient knowledge and experience in PBL construct for major weapon systems Organization Culture and Style are relevant for an effective organization. Both are recommended for further research. 11

tri-partite consultation structure is not adapted to PBL environment Insufficient knowledge and experience in PBL construct for

12 Terms of Reference Effective Control -> adopt AMC appraoch Organization Structure -> adopt horizontal organization structure WSM Responsibility and Authority -> one single actor WSM Consultation Structure -> adapted to PBL WSM knowledge -> specific knowledge, sustaining knowledge to act as a smart buyer/smart maintainer 12

Authority -> one single actor WSM Consultation Structure -> adapted to PBL WSM

13 Design (1) Design Approach F-35 as a case study Approach -> AMC Business Realization Design Results (effective control) AMC to control weapon system cost-effectivess LCM model -> can be constructed (costs, air-based weapon systems, PBL) LCM team -> international environment WSM tools -> Roadmap, WSM portal 13

cost-effectivess LCM model -> can be constructed (costs, air-based weapon

14 Design (2) Design Results (WSM organization) WSM matrix organization structure operational, logistics, engineering, contracts, information management and financial control OPCO -> WSM responsibility and authority International environment -> air-based weapon systems Integration functions (liaison) -> coordination Design results (WSD organization) role WSD -> Type Design dependency on foreign aviation authorities Integrated in matrix organization structure (engineering element) divisional (product oriented) organization structure responsibility and authority -> Military Aviation Requirements 14

-> coordination Design results (WSD organization) role WSD -> Type Design dependency on foreign aviation authorities Integrated in matrix

15 Design (Stakeholder Assessment) Interviews with relevant Stakeholders Purpose perspective of stakeholders involve stakeholders in design process prevent biased view researcher SWOT analysis by stakeholders Results in general stakeholders support the proposed design design needs to be further developed Limitations limited number of stakeholders required knowledge 15

analysis by stakeholders Results in general stakeholders support the proposed design design

16 Conclusions effective control of weapon system cost-effectiveness effective WSM and WSD organization structure clear WSM responsibility and authority structure WSM consultation structure adapted to PBL Sustained WSM knowledge function of WSD as MTCH and weapon system technical knowledge 16

and authority structure WSM consultation structure adapted to PBL

17 Recommendations (1) Weapon System Management adopt AMC approach to control weapon system costeffectiveness in PBL environment ensure access to cost information in a PBL construct adapt matrix organization structure for WSM assign WSM responsibility and authority to one single actor adapt WSM consultation structure to PBL environment gain experience with PBL support concepts on a system level and take measures to sustain WSM knowledge 17

WSM assign WSM responsibility and authority to one single actor adapt WSM consultation structure to PBL

18 Recommendations (2) Weapon System Departments sustaining MTC adopt divisional structure of WSD integrate WSD in WSM matrix organization approval of foreign aviation (airworthiness) authority F-35 Weapon System Management create liason positions in F-35 international sustainment organization -> Product Support Management ensure insight in sustainment costs and sustainment costs framework -> operational LCM model Further research Required organization culture enlarged WSM (AMC) scope for JSF -> training and support system 18

international sustainment organization -> Product Support Management ensure insight in sustainment costs and sustainment costs

19 Questions? 19

Dissertation. How to implement Asset Management Control in a non-profit maintenance organization, on a cost effective manner

Dissertation. How to implement Asset Management Control in a non-profit maintenance organization, on a cost effective manner Dissertation How to implement Asset Management Control in a non-profit maintenance organization, on a cost effective manner Master of Science in Asset Management Control International Masters School Student: