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January-February 1995 PROGRAM MANAGER Journal of the Defense Systems Management College Foreign Technology Dependence "Fly Before You Buy" Lean Logistics The Right Stuff - Revisited "We have slain the Dr. Kaminski addresses the mighty dragon, DSMC graduates r. of PMC 94-2 but now we're (see page 2) left with ( numerous pesky i snakes. 00U," 19950424 050

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Page 1: PROGRAM January-February MANAGER · Guide13 27 30 DSMC Guidebook A Decade of Success and The Right Stuff - Revisited Distribution 18 Failure in the DoD Acquisition Capt. I3nvan J

January-February 1995

PROGRAMMANAGER

Journal of the Defense Systems Management College

Foreign Technology Dependence

"Fly Before You Buy"

Lean Logistics

The Right Stuff - Revisited

"We have slain the Dr. Kaminskiaddresses the

mighty dragon, DSMC graduatesr. of PMC 94-2but now we're (see page 2)

left with (

numerouspesky i

snakes. 00U,"

19950424 050

Page 2: PROGRAM January-February MANAGER · Guide13 27 30 DSMC Guidebook A Decade of Success and The Right Stuff - Revisited Distribution 18 Failure in the DoD Acquisition Capt. I3nvan J

Journal of the Defense Systems Management CollegeVol. XXIV, No. 1, DSMC 124

Published by the

DEFENSE SYSTEMSMANAGEMENT

COLLEGEPRESS 2 5

Colnuandlat Dr. Kaminski Speaks to PMC NATO's NAMSA InauguratesBrig-. Gen. Claude M. Bolton, Jr., USAF 94-2 Graduates Its Group Facilitation Center

Provost and Deputy ConrimondontEdward Hirsch Alberta Lctch'mon Louis Evangcl ista

Dean, Division of College Operations Toglether wvc can deliver superior NAMSA's new Group Facilitationan1d Services -

Col. William E. Knight wveapon systems at an affordable cost. Center enables the Agency to imple-Director, DSA4C Press andL Art Director ment a newx wvay of making decisions.

Greg Caruth

PROGRAMMANAGERANo11C ,ing Eio

Collie J. Johnson

Art DirectorGreg Caruth K

Typography nod DesignPaula Croisetiere >

Jeanne Elmore es~

Protrm Mlanager (ISSN 0199-7t114) is r lsksit<~

publishbimonthly b the Defense Systems llAtJaageinet College Press. ,-s

POSTM\ASTER: Send address chages to:D EFENS E S YS T N1G,%tT CO)L LEGEATTN~ DS/ltD PRESS9820 BEL VOtE ROADSUITE G38FT IIELVOIR VA 22060-55-5 22 25

Ta subscribei, government perisomnel shouild America's Eroding Critical "Us Versus Them" Attitudesubmitiwritten reCques tlsin~g theirbaLsineCss addreIS- ehnlgyBs Improves After Courseto the above address.Teho gyBs

Nongvermen emloyes ad oganzatins t. dr.Stete E~tbtgUSNVincent P. Grimecsmat0' subscibe at SlOi. ann aaLl0' through theSupeinttendent of Documents, UI.S. GovernmenCt -al ann ins of our nation's DSMC gaming in classes offers anPrinting Office, washinlgton, DC 20-402. Second oe niomn o hrniesClass postage paid at Fort tlelvoir, VA and at ad- alarming dependence on foreign tech- opnevr mntfrsaigda.

clitanalentl offces.nology critical to our most sophisti-

XAtanaseripts, Letters to the Editor, and other cated weapons systems.CorreCspondece7C1 arewecome and 17Cshould beC addre11ssedas above. lonqa is concering pro0posed artIices m7aybec macic In' phone at 1703) 805-2 892/3056 or 1/SN655-2892/13056. \VhC1neer lemn1i11C 0in or maSCuIi1 ie nouns or 1iroiionns appear. other thani \ith OhIVIOas relerence to namied

___________________________________________________ idividuaLls, then ha1Ve beenI uISed for lCirr PLrPOSeS ard are riean: iii teir generic senise.

Program Manager January- February 1995

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- -4 -SECURITY CLASSIFICATION OF THIS PAGE

Form ApprovedREPORT DOCUMENTATION PAGE OMB No. 0704-0188

la. REPORT SECURITY CLASSIFICATION lb. RESTRICTIVE MARKINGS

Unclassified None2a. SECURITY CLASSIFICATION AUTHORITY 3 DISTRIBUTION/AVAILABILITY OF REPORT

2b. DECLASSIFICATION /DOWNGRADING SCHEDULE Distribution Unlimited

4. PERFORMING ORGANIZATION REPORT NUMBER(S) 5. MONITORING ORGANIZATION REPORT NUMBER(S)

6a. NAME OF PERFORMING ORGANIZATION 6b. OFFICE SYMBOL 7a. NAME OF MONITORING ORGANIZATION

(If applicable)

Defense Systems Mgmt College DSMC Press Same as 6a.

6c. ADDRESS (City, State, and ZIP Code) 7b. ADDRESS (City, State, and ZIP Code)

9820 Belvoir RoadSuite G38 Same as 6c.

Fort Belvoir, VA 22060-55658a. NAME OF FUNDING/SPONSORING 8b. OFFICE SYMBOL 9. PROCUREMENT INSTRUMENT IDENTIFICATION NUMBER

ORGANIZATION (If applicable)

Same as 6a.8c. ADDRESS(City, State, and ZIP Code) 10. SOURCE OF FUNDING NUMBERS

PROGRAM PROJECT TASK IWORK UNIT

Same as 6c. ELEMENT NO. NO. NO. ACCESSION NO.

11. TITLE (Include Security Classification)

Program Manager - Journal of the Defense Systems Management College VOL XXIV,No.1,DSMC 124

12. PERSONAL AUTHOR(S)

Nmerous Authors13a. TYPE OF REPORT j13b. TIME COVERED 14. DATE OF REPORT (Year, Month, Day) j15. PAGE COUNT

Journal FROM TO January-February 1995 3616. SUPPLEMENTARY NOTATION

17. COSATI CODES 18. SUBJECT TERMS (Continue on reverse if necessary and identify by block number)

FIELD GROUP SUB-GROUP America's Eroding Critical Technology Base; NATO's NAMSAInaugurates Its Group Facilitation Center; Lean Logistics;

A Decade of Success and Failure in the DOD Acquisition Syste19, ABSTRACT (Continue on reverse if necessary and identify by block number)

Program Manager is intended to be a vehicle for the transmission of information on policies,trends, events, and current thinking affecting program management and defense systemsacquisition. -

S --

20. DISTRIBUTION/IAVAILABILITY OF ABSTRACT 121. ABSTRACT i'L8t C Z:EL SS'I _I:NC3

UNCLASSIFIEDUNLIMITED El SAME AS RPT. El DTIC USERS Unclassi _fied

22a. NAME OF RESPONSIBLE INDIVIDUAL 22b. TELEPHONE (nclude Area Code) I22c. OFFICE SYMBOLSylvia Nance I703-805-2743 AS-PR

DD Form 1473, JUN 86 Previous editionsare obsolete. SECURITY CLASSIFICATION OF THIS PAGE

Page 4: PROGRAM January-February MANAGER · Guide13 27 30 DSMC Guidebook A Decade of Success and The Right Stuff - Revisited Distribution 18 Failure in the DoD Acquisition Capt. I3nvan J

VTN,

8 14 20Is "Fly Before You Buy" Lean Logistics The Proof is in the PackagingObsolete? Col. Arthui 13. Morrill III, LISAF Richard S. Cunningham

Rear Alm. fohn J. Zeir, USN A professional logistician discusses An examination of the discipline ofLt. Mike Oldenburg, USN changes affecting and improving our core packaging - an essential element of the

Two insiders review the need for rapid, logistics processes and capabilities. DoD Logistics System.but disciplined acquisition.

ALSO4.50 Applicants Sought for4.00 Economics Chair 43.50

$ EMD- 3.00 Defense Industry Students inAct/ 2.50 PMC 94-2 Visit ADPA 6Plan

Budget 2.00 .....................1.50 ,Call for Papers: 1995

1.00 Acquisition Research0.50 Within Budget Symposium 7

0.0Within Schedule Sy psu

0.00 I Book Review - The Project0.00 0.50 1.00 1.50 2.00 M anag e r oject

EMD-Act/Plan Schedule Manager's Survival

Guide1327 30 DSMC GuidebookA Decade of Success and The Right Stuff - Revisited Distribution 18Failure in the DoD Acquisition Capt. I3nvan J. Mc Veigh, USA From Our Readers 19System

A competency perspective of Army Inside DSMC 21Rayinond W. Rcig

A recent research effort identified the program managers. 1994 Program Manager

current "track record" of DoD weapon Magazine Articles 35

systems acquisitions. This article reviews Quality Forumthe acquisition history of 24 recent pro- Announcement 36grams of all types.

Program Manager isa veh icle for transmitting information on policies, trends, events, and current 1i ki ig affecting pirogiram management and defense systems acquisition.Statements of fact or opinion appearing in Program Manager ate solely those of the authors and ate not necessarily endorsed by the Department of Defense or the DefenseSystems Management College. uniess copyrighted, articles may be reprinted. \Vhcn reprintin, please credit the author and Paogramn Manager, and fonvard two copies of thereprinted material to the DSMC tress.

Program Manager 1 January-February 1995

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DR. KAMINSK"It"I SPEAKEP TOPM%" Y4-2 GdRADYUATESL

"We have slain the mighty dragon, but now we'releft with numerous pesky snakes."

Alberta Ladymon

ddressing the 421 graduates of the the nature of threat facing the U.S.; The Department's renewed empha-Defense Systems Management withthemeanlevelofthesinglegreat- sis on reducing the cost of weaponCollege (DSMC) Program Man- est threat - communist domination system ownership is an important pil-agement Course (PMC) 94-2 at of the free world - dramatically re- lar in DoD's investment strategy. Dr.

Fort Belvoir's Wallace Theater on De- duced.Aresultofthislesseningthreat Kaminski spoke of the need to shiftcember 9, 1994, Dr. Paul Kaminski, has led to a decrease in our force away from performance as the soleUnder Secretary of Defense for Ac- structure and the overall defense bud- driving consideration, to move to-quisition and Technology, told attend- get. Ironically, he points out, the vari- ward an environment where weees: "The defense acquisition chal- ance of our collective residual threats adopt a more balanced "cost ofl&.ige facing us is driven by dramatic - the pesky snakes - are up consid- performance" view: "Weapon .changes underway in the world to- erably, as can be seen with a 30- system life-cycle cost shouldday. I see us in a period of dual percent increase in deployments of be viewed as an independenttransition: one is a needs transition U.S. forces worldwide. Dr. Kaminski variable, not simply a fall-due to enormous changes in the na- credited Secretary Perry with placing out dependent variable."tional security environment; and the proper emphasis on deployment andsecond change is what I would de- operational readiness in this evolvingscribe as a sources transition where national security environment.we, in the Department of Defense(DoD)), are promulgating a shift in the DoD) Investment Strategybalancebetweenthemilitaryandcom- The address outlined portions ofmercial elements of our national in- an investment strategy for the DoD.dustrial base. We are moving our sys- Given the diversity of situations to betem to place greater reliance on dealtwith, the one thing not changingcommercial sources." is "our policy of maintaining the tech-

nological supremacy of our fieldedChanging National Security weapon systems. Our lessons learnedEnvironment here are very clear - the second best

Dr. Kaminski spoke of the change technology, the second best system,in the national security environment, will just not cut it for the U.S. and forechoing comments of the Central In- our warfighters. Desert Storm illus-telligence Agency Chief, Jim Woolsey: trates the point: second best means a"We have slain the mighty Soviet very poor, last-place finish."dragon, but now wve're left with nu-merous pesky snakes." He addressed Our challenge in this environment

is to "maintain technological su-premacy in a period of fewer resources;

Ms. Ladymon is special publica- doing so therefore, at an affordabletions writer-editor, DSMC Press. cost."

Program Manager 2

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The primary objective is to do the I A second pillar of DoD's invest-up-front trades and determine the in- } ment strategy is our effort to improvecremental cost of a system's driving - the defense acquisition system. Dr.requirements. An important fact to - Kaminski saw acquisition reform asremember is that 80 percent of systemstages:life-cycle costs are determined during , *poeeig.n.heesagsthe first 10 percent of the effort. Dr. Stage 1: Groundwork. "This stage,Kaminski believes it is important to now behind us, was the groundworkmake the results of cost performance laid by Bill Perry, Colleen Preston andtrades available to decision makers many others." It was completed withearly in the acquisition process; rather passage of the Federal Acquisitionthan have an unwanted outcome oc- Streamlining Act (FASTA) of 1994.cur downstream as a consequence of This Act provides an excellent foun-not having explicitly made those de- dation and is especially helpful in twocisions. "The message here is to all of small-purchase categories - underus - from program directors, to pro- $25,000 and under $100,000.

Honorablc Paul G. Kamins i, Undcr Secre-tary of Defcnse for Acquisition and Technol- Stage 2: Implementation."It's hereogY and now-time for doing and not just-- fgram executive officers, to service ac- talking." We must "unlearn" some of

quisition executives, to myself in the the accumulated lessons we'vedefense acquisition executive role - learned to make the defense acquisi-we are responsible for providing our tion system truly responsive. Thiscustomers with the kind of explicit stage also deals with improving theaffordability information needed to processesforprocurementofmedium-

make informed judgments about to large-size systems.If 7 program alternatives."

Stage 3: Another Round of Legisla-tion. This stage is directed towardenactment of a legislative package -FASTA II - for relief from restrictive

)" 0statutes not dealt with earlier. It isintended to remove many of the statu-

etory impediments to efficient acquisi-tion of large systems. "I see us movingto the third stage now-even as we're

- making progress on Stage 2 imple-mentation." Dr. Kaminski envisions

/ acquisition reform will proceed byfacilitating three key cultural shifts:

1. Moving from an environmentdictated by regulations to onewhere performance incentivesmotivate the right behaviors.Our goal is to provide a climatefor reasoned, well-informed risktaking by program managers.

2. Changing from a tradition ofhierarchical decision making toa process where decisions aremade across organizationalstructures by integrated prod-uct teams. Decisions need to bepushed down to the lowest lev-

Program Manager 3 January-February 1995

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els where it's appropriate to do cial technology. The advantage will Iso. This means that our senior go to the nation who has the bestacquisition staffs need to be in a cycle time to capture what's availablereceive mode to be receptive to commercially, get it incorporated in APPLICANTSinput from the field- not just a weapon systems, and get it fielded." SOUGT FORtransmit mode. It is important to S-ucreate incentives for good ideas Dr. Kaminski identified a fourth key ECONOM ICSand "best practices" to bubble investment strategy element: improv- CHAIRup from the outstanding people ing logistics and support. "In the cur-working in the field. rentbudgetenvironment, life-cyclecosts U.S. Air Force

will have great weight in our calculus of3. "Shift away from a one-size- what to build." It is important to con- Academyfits-all classical acquisition ap- sider "back end" sustainment costs upproach to tailored approaches, front in the design of a new system. Inadjusted on a program-by-pro- reviewing inventory costs, Dr. Kaminski The Department of Econom-

gram basis." Implementation finds DoD wholesale active spare in- ics and Geography, U.S. Air

will be in the form of "pilot-like ventories are valued at $77 billion, Force Academy, Coloradomechanisms" to serve as agents with annual outflows approaching $11 Springs, Colo., announces thefor change. billion. About $18 billion is war re- creation of the William A.

serve materiel stocks. Even without Anders Chair for Economics ofDr. Kaminski identified "leverag- the war reserve stocks, "the inventory the Defense Industrial Base and

ing the U.S. industrial base" as a third turns ratio is unimpressive when com- i-------necessary pillar of DoD's investment pared to certain commercial commodi- invites applicants for this Chair.strategy. A dual-use strategy is essen- ties. I wouldn't say we can managetial in today's world. The objective is this inventory in exactly the same The intentof thisendowedChair

to leverage both the technology and way commercial inventory is man- is to increase understanding of

production components of our com- aged- but I would say there is prob- the relationship between themercial industrial base. The DoD no ably some room for improvement." defense industrial base and na-longer paces technological change in An additional cost of $13 billion is tional security. This is a one- tomany areas; the way is being paved spentannuallyondepotmaintenance. two-year position, with a pro-by the commercial sector. The DoD Summing depot maintenance and jected hiring date of July 1995.needs to learn how to best capture annual spares outflows together pro- The Department reserves thewhat is going on in the commercial vides an annual cost not far fromworld; and then influence the devel- what DoD is spending on procure- right not to proceed with anyopment of high-payoff commercial ment. The strategy is to reduce back- appointment forfinancialorpro-

technology through selected applica- end support costs and plow the say- grammatic reasons. A Masters

tion-specific projects "without having ings backinto modernization accounts Degree is required; however, a

to make root investments by our- "in this period when we're stretched Doctor of Philosophy is pre-

selves." Dr. Kaminski realizes com- very thin on the resources needed to ferred. Candidates must dem-plex defense systems will not typi- support our current force." onstrate a commitment to un-cally be manufactured as end items dergraduate teaching and toon commercial lines; however, sub- Conclusion research directly related to the

systems and components for those Inclosing, Dr. Kaminskirestatedhis defense industrial base. Workdefense systems probably could be vision of fielding technologically supe-manufactured in commercial or in rior systems at an affordable cost. A experience in the defense sectorcommon production facilities. DoD investment strategy meeting this is preferred. The closing date is

challenge can be implemented "if it has February 28, 1995. Send a vita,

AccordingtoDr. Kaminski, the ben- ownership by people like you in the the names of three references

efits of a better leveraged industrial field. Together we have an opportunity and salary requirements to:base are not only reduced cost, but tofundamentallychangethewaywedo LT COL STEPHEN SLATEreduced cycle times as well. "In DoD, business. I would refer back to a quote HQUSAFA/DFEGwe can't afford a 15-year cycle time by President Kennedy: 'Some look at 2354 FAIRCHILD DRIVEwith a commercial cycle turnover ev- things as they are and ask why-others SUITE 6K12ery 3-4 years. In a global market, look at things as they could be and ask USAF ACADEMY CO 80840-6238everyone - including our adversar- why not.' I invite you to join me inies -has access to the same commer- asking why not." __

Program Manager 4 January-February 1995

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= NATO' NAMSAINA'UGURIATES ITS G-ROUP

~FACILITATION CENTER

A New Way of Making DecisionsLouis Evangelista

n important event took place on As shown in the Figure, the facility27S1ptember 994at 1600hours N I A will help teams through the decisionat the North Atlantic Treaty making process of a meeting in a moreOrganization (NATO) Mainte- effective and efficient manner. The

nance and Supply Agency (NAMSA), T [ advantages of using the NAMSAlocated in the Grand Duchy of Lux- Group Facilitation Center should beembourg. The NAMSA General Man- seen in terms of its support to deci-ager, H. Schmidt-Petri, Major Gen- sion making through-eral, presided over the official opening The Groupceremonies for the NAMSA Group a anonymity, which removes the bar-Facilitation Center. Facilitation Center riers in meetings due to emotions,

rank and personality;The facility uses GROUPWARE wil enabe the * parallel processing, as all partici-

technology - computer-based and pants can work simultaneously oncomputer-aided facilitation tools and Agency to implement the same issues; andtechniques. The term GROUPWARE 0 documentation, by instantloosely describes software support for a new way of making recordkeeping and reporting of thegroups working collaboratively on results of meetings.projects. As a generic term, it refers to decisions."a group of technologies that mediate The operational core of the NAMSAinterpersonal collaboration through Group Facilitation Center is its spe-the computer."' cific hardware and software configu-

ration.Specialized computer aids de- plete complex projects by significant

signed for use by collaborative work- amounts. The Agency learned about The Hardware consist of-ing groups were reported to produce this kind of facility, generally knownmeasurable productivity gains. Soft- as an electronic meeting system, from Local Area Network: Network forware for electronic meetings, in par- the U.S. Defense Information Sys- 12 users' laptops, two personalticular, were purported to reduce the tens Agency. computer workstations, LCD flattime required for managers to com- screen, color projector, electronic

The General Manager explained in white board, scanner, server, twohis opening remarks that the Group printers and a copier.Facilitation Center will enable the

Mr. Evangelista is the Chief, Man- Agency to implement a new way of The Software consist of-power, Organization and Methods Di- making decisions since it is a toolvision, NATO Maintenance and Sup- designed to help teams in working * GROUPSYSTEMS V: The systemply Agency (NAMSA), located in the together to achieve results. It will be enablingGROLIPWARE operation,Grand Duchy of Luxembourg. available to many NAMSA users. composed of a suite of 14 tools,

Program Manager 5 January-February 1995

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such as Electronic Brainstorming, The General Manager pointed out team members, must be open-Outliner, Alternative Evaluator, that three key ingredients make the minded and adventurous.Group Writer, Vote, etc. facility work:

* CM/I: Corporate Memory 1 allows For further information concern-the exploration and evaluation of (1) An initiator or team leader ing the Center, please contact thedifficult issues by documenting requests a session in the facil- Chief, NAMSA/AE, Telephone 011positions, arguments and deci- ity. (352) 30 85 85 254, Telefax011 (352)sions. This computer-based tool (2) Facilitators help the teams 30 87 21, Mailing Address: NAMSA/supports discussions of issues in a through their sessions. These AE, UNIT 4045, APO AE 09126-4045.structured way by identifying and individuals are specially trainedinter-relating issues, alternative so- to handle the GROUPWARE Referencelutions and advantages/disadvan- software and to facilitate help-tages. ing the team leader in planning CW Custom Publications, 375

* IDEFO: Integrated DEFinition is and running the team sessions. Cochituate Road, Framingham, MAan activity modeling technique that (3) Participants, identified as the 01701is used for detailed process analy-sis. The models created describe FIGURE. Process of a Meetingprocesses in terms of their inputs, Start with an issueoutputs, controls and mechanisms.This technique is used to model Support bythe decisions, actions and activi- Process Groupwareties of an organization or system to of aidentify non-value adding and lim- meeting Diverge Generate ideas

ited value adding activities, whichare to be eliminated prior to auto- Organize, evaluatemation. stn - and share ideas

" Office Automation: These are stan-

dard automated office applications,such as Excel, Word, PowerPoint, rConverge R onsnetc. reach consensus

Decision on issue

DEFENSE INDUSTRY STUDENTS IN PMC 94-2 VISIT ADPADuring a 7 December 1994 De-lense Systems Management Col-lege (DSMC) student field trip tothe American Defense Prepared-ness Association (ADPA),Rosslyn, Va., PMC 94-2 industrystudent, Diane Copenhaver, re-ceives on orientation on how in-dustry representatives in theWashington area do their jobsand interact with Governmentprocurement authorities. Pic-tured from left: Lt. Gen.Lawrence F. Ski bhie, USA (Ret.),President, ADPA; DianeCopenhaver, Boeing Company;George Krikorian, IndustryChair, DSMC.

Photo by Richard Mattox

Program Manager 6

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CALL FOR PAPERS1995 ACQUISITION RESEARCH SYMPOSIUM

Sponsored by the Deputy Under Secretary of Defense(Acquisition Reform)

Cohosted by the Defense Systems Management College andthe National Contract Management Association,

Washington, D. C. Chapter

Holiday Inn Crowne PlazaRockville, MarylandJune 28-30, 1995

The 1 995 theme is "Acquisition for the Future: Imagination, Innovation, and Implementation," and the sub-theme is "Acquisition Reform: A Mandate for Change - Reengineering the Acquisition Process." Papers thataddress the theme, subtheme and current issues in acquisition management will be especially relevant. Topicareas include:

* Acquisition Management Education and Workforce , Acquisition Planning and Management @ Commercial Products and Practicess Contracting and Subcontracting e Cost and Resource Management s Defense Industrial Base* Engineering and Manufacturing Matters a Federal Acquisition and the Political Process e International Acquisition Issues* Logistics Approaches and Issues * Management Decision/Information Support Tools a Systems Performance and Test/Evaluation

To be considered, all papers should include the Title, Topic Area, Author(s) Name, Business Address and Tele-phone Number. If a paper is submitted with more than one author, the primary author should be listed first. Allcommunications will be addressed to the primary author. Paper guidelines are available upon request to: Ms.Joan L. Sable, DSMC Program Co-Chair, at (703) 805-2525/2289 or DSN 655-2525/2289.

Prospective authors must submit three copies of their paper and, if possible, electronic media on a 3 1/2" disk nolater than February 24, 1995. Paper will be evaluated to be accepted as session presentations and/or publishedin the 1995 Acquisition Research Symposium Proceedings.

Send papers to: Schedule:DEFENSE SYST MGMT COLG Paper Deadline: February 24, 1995ATTN RCID (CALVIN BROWN OR JOAN L SABLE) Notification: April 19959820 BELVOIR ROAD Registration Information: April 1995SUITE G38 Symposium: June 28-30, 1995FT BELVOIR VA 22060-5565

Program Manager 7 January-February 1995

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The Need for Rapid but Disciplined AcqusitionRear Achm. John J. Zcrr, USN o Lt. Mike Oldcenburg, LLSN

PCeratioI IalI test anrd eValILta tiO n hV Shistorically been based on anacquisition and disciplinemethodology known as "Fly

Before You Buy." Many years of dif-ficult lessons learned and a need fordiscipline and structure led to orga- c I

nizing the acquisition process into aseries of phases and milestone deci-sions.

Recent efforts to economize acqui-sition led to reevaluating this struc-ture and the role of operational test- ', ..ing. Any reform effort, however, mustnot lose sight of disciplining the ac- ,quisition process through sound m.an-agement, informed decision making -and planning, as well as thorough test ' -,

and evaluation.

Where We Sta-ad N owMany forces are driving us to speed

the pace of acquisition reform- forcesranging from the highest levels in theDepartment of Defense to selectedcommanders in chief throughout theServices. Fortunately, systems now indevelopment promise a dramatic mili-tary advantage. Further, some of the

Rear Admn. John Zcrr, LISN, is th e TiM T acticaI Command 5ytm AfloAl (NTCS(A)) tcmlmnl uho0cd the LISS Kittyhawk (CV3).

Commander, Operational Test andEvaluation Force (COMOPTEVFOR), new systems aie cheaper than sys- absolute requirement. The problernNoifolk, Va. tems they will replace, arises when the drive for speed bull-

Lt. Mike Oldenburg, LISN, is CLu- dozes aside many of our acquisitionrently the operational test director for Because of the rapid rate of tech- discipline measures. Thus, we needsubmarine comunMications projects on nological advmces and the need to rapid acquisition, but we also needthe COMOPTEVFOR staff, Norfolk, Va. economize, rapid acquisition is an disciplined acquisition.

Program Manager 8 Jantjaiy--February 1995

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Problems resulting from acquisi- Initially, the latest round of acqui- organic and inorganic tactical, sur-tion with inadequate discipline may sition reform aimed at dramatic veillance and intelligence data, pro-be the loss of important programs, change. When that proved too hard, vidingthe afloat fleet commanderwithschedule slips, scandal, and systems thinking focused on how to speed information necessary to direct thethat are ineffective and insupportable programs along by streamlining the battle force.in the field. Initially acquisition plan- processes prescribed by current law.ners tailored "Fly Before You Buy" to To date, acquisition streamlining Composed predominantly of COTShardware-intensivesystemsthatDoD manifests the following principal char- computers, the system resides in a dis-developed to meet military needs- acteristics: tributed local area network throughoutsystems for which there were no the command and control spaces. In anequivalents in the commercial sector. • Considerable reliance on non- OPEVAL, OPTEVFOR examines the

developmental items/commercial operational effectiveness and suitabilityNow, many of our systems are soft- off-the-shelf (NDI/COTS) technolo- of a system and makes a recommenda-

ware-intensive, and many of the gies. tion about introducing the system to thefleet. At the time of OPEVAL, the Navy

Advanced Concept Technology maintained two versions of hardwareo Demonstrators (ACTD). and two of software on over 200 ships.,- Thus, a recommendation regarding fleet

- Deletion of the military specifi- introduction was meaningless, andcation library. OPEVAL was too late to perform any

kind of acquisition discipline or even toSBypassing many of the old con- serve a quality assurance function.

straints that slowed but also disci-plined acquisition. F-14D

On the F-14D program, the Navy'sIs Streamlining the Wave of purchase of the aircraft is complete,the Future, or Are We and two squadrons already completedAlready Behind? their first deployment to the Indian

Acquisition reform and stream- Ocean and Persian Gulf. Yet, we stilllining can improve many acquisi- haven't started the phase of testingtion-related areas and current acqui- that should have released the fundingsition practices.Although ACTDs are for production. Our old testing para-still progressing from policy pro- digm said we could not conduct announcements to programs, many operational test until all key systemsareas in the acquisition business are were available to support a full sys-already streamlined frorn the opera- tem test. We have the F-14D, but wetional tester's point ofview. The Navy do not have four important sub-Tactical Command System Afloat systems, and thus have not gone to(NTCS(A)) and the F-14D are ex- test.amples of programs where new ac-quisition practices rendered our old Acquisition managers encountereddiscipline and our old operational significantdelayswiththesubsystems,test and evaluation philosophy ob- and since the F-14D has significantsolete. advantages over the older models,

procurement authorities made theNavy Tactical Command decision to field the aircraft. And al-System Afloat though we made the decision to field

Recently, the Navy's Operational the aircraft, our old philosophy said

Test and Evaluation Force we should not go to test until all the(OPTEVFOR) completed an opera- subsystems were available.

military's needs can be met in the tional evaluation (OPEVAL) oncommercial sector. The challenge is NTCS(A). The NTCS(A) is the Navy's Fielding a system like this, how-to impose the right new discipline on primary command, control, commu- ever, without complete testing, posesthe acquisition of software-intensive nications and intelligence (C3I) sys- problems for fleet operators of thesystems without slowing or derailing tem. The system receives, processes F-14D and for fleet commanders in-efforts to reform and streamline. and displays an integrated fusion of terested in the true state of their force

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point. The old discipline measureswere pushed aside, and no new disci-pline measures, compatible withstreamlining, are in place.

- Not all would agree that the "FlyBefore You Buy" idea is outdated.Also, the concept probably meansdifferent things to different people.Usually, "Fly Before You Buy" in-cludes the following principal charac-teristics:

a Many discipline measures thatmake up the philosophy were put inplace because of lack of trust.

e Requirements, once approved,u.S. Navy F-14Ds fly 11 tonnatio7. are viewed as "chiseled in stone."

readiness. Fleet operators depend on You Buy" philosophy-a total absence * Full-rate production decisionsthe operational testers to generate of trust between the two sides of the are based on OPEVAL results.initial tactical manuals and users' acquisition process. The operationalguides. The guides were an important testers, DoD acquisition oversight a Only limited-rate initial produc-and natural by-product of the disci- agencies and the Congress were on tion items can be acquired prior topline measures imposed on the old one side; program managers, contrac- OPEVAL.acquisition process. tors and sponsors were on the other.

This mistrust led to the impression * Test and evaluation events areObtained from the results of disci- that attempts to downscale require- driven strictly by program forces.

plinedtestingonuniquerangeswhere ments were dishonest activities byactual threat conditions are replicated, merchants who could not deliver what * Program documents are approvedthe guides are of considerable value, they promised. through a slow, laborious serial process.Measurement of system performanceon these ranges is also important in Currently, "Fly Before You * Systems are fielded only afterassessing readiness. Here, readiness Buy" Doesn't Work With demonstrating performance sufficientmeans awar-winning readiness-not Streamlined Acquisition to pass mature thresholds.(as commonly used) a measure of Within the last several years, somepreparedness to go to war. DoD personnel began to appreciate * Most operational testing is qual-

the fact that the pace of advancing ity assurance at the end of a develop-In situations like this, where a major technology in the civilian sector, es- ment process.

system is ready for operational testing pecially in communications and con-but some key subsystems are not, one puters, had outstripped the capability Prior to declaring "Fly Before Yousolution could be a revision to the of DoD acquisition processes to keep Buy" obsolete, the kinds of weaponssystem requirements. Two reasons pace. The same personnel also be- systems to be acquired in the futureunderlie the difficulty of this solution: lieved acquisition strategies that could shouldbe considered. In general, three(1) the extremely slow process of up- keep pace with the rate of technology categories can be defined: weapons;dating key program documents such advances were incompatible with our command, control, communicationsas the Operational Requirements older, slower acquisition philosophy, and intelligence (C31) systems; andDocument; and (2) our acquisition "Fly Before You Buy." information systems. Currently, manyphilosophy of "Fly Before You Buy." systems in all three categories are

As acquisition planners developed software-intensive, posing special testProgram managers typically find faster acquisition processes, they and evaluation problems. The acqui-

considerable resistance to do any- pushed the old discipline measures sition strategy and the discipline (in-thing that looks like downscaling re- aside because these measures made cluding testing) philosophy should bequirements. This resistance resulted acquisition too slow. Therein lies the matched to the specific program, de-from a key feature of the "Fly Before real problem with streamlining to this pending on its category.

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Two Processes That Do Work pline measures at UNISYS consist ofBefore considering new acquisi- disciplined development of complex

tion discipline measures, let's look at software packages, similar to the pro-some acquisition processes that are cess used by the WSSAs, and earlyworking well. The first is the software testing to find and fix problems asdevelopment process in effect at the early and cheaply as possible.Weapon System Support Activities(WSSA) at China Lake and Point Maintaining a High LevelMugu, California. These facilities de- of Readiness is thevelop software for the mission com- Fundamental Goalputers of tactical jet aircraft. At times, acquisition can seem like

an end unto itself. But acquisitionThe development process consists does play on a larger field. For the

of a module-by-module build. The Navy, the larger field is the Navy andlaboratory assembles and tests the Marine Corps strategic vision, "Fromfirst module. Laboratory personnel the Sea." A singularly important as-then play the module on a Hardware pect of "From the Sea" is that thein the Loop (HIL) facility where devel- Navy and Marine Corps must be ableopmental and operational test pilots to fight unaided for the first two toevaluate the module's performance. three weeks of the next conflict. ThisAfter module one performs satisfacto- means that the Navy's deployed forcesrily, these same personnel add mod- must be at a high level of readinessule two to module one, and again test and able to quickly transition fromin the lab and HIL facility. presence to combat operations. For

readiness to be high, acquisition pro-This disciplined module-by- cesses must work faster and more

module process (build, test, fix, build, cheaply because of the following:etc.) continues until the entire packageof software plays satisfactorily on the * Budgets were reduced.HIL facility. Laboratory personnel thenrelease the software for developmental * Technology is advancing rapidlytest (DT) flight. After fixing DT deficien- in many areas, especially in C'I andcies, they release the software for op- other software-intensive systems.erational test (OT) flight and also to the Many systems in these areas are im-fleet for training. This achieves two portant because they provide a com-benefits over our previous test philoso- dustry imposes discipline on its com- bat effectiveness multiplier effect.phy: an expanded database from which mercial product development. Thetoevaluate the software's performance, UNISYS Corporation's main product * The weapons technology avail-and the fleet starts training early with line is machines to automatically read able to the U.S. military, in some keynew software. and process checks. Interestingly, areas, lags the technology of other

UNISYS managers reported that the countries.Over the years, acquisition plan- biggest problem for engineers and

ners at the WSSAs developed confi- manufacturing personnel was in un- As stated earlier, some streamlineddence in the software development derstanding the requirements. At this acquisition processes are already de-process, resulting in the simultaneous plant, the company brings the cus- vised. With the signing of the Federalrelease of the software for both train- tomer in at the start of a program, and Acquisition Streamlining Act of 1994,ing and OT. In years past, when con- the requirements are written. The en- others will surely follow. No new dis-fidence in the development process gineers then immediately set to work cipline measures are in place, anddeclined, each new set of software to develop a prototype for the specific some forces are working counter torequired an OPEVAL prior to any purpose of refining the requirements. discipline.release to the fleet.

On most of their programs, the Many in the fleet, aware of avail-During a visit to the UNISYS plant requirements are refined based on able technology, call for high-tech-

in Plymouth, Michigan, OPTEVFOR what they learn from the prototype nology systems faster. Battle groupexamined a second developmental about technical problems and cost/ commanders call for command andprocess to gain insight into how in- performance tradeoffs. Other disci- control systems tailored to their indi-

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vidual preferences. Occasionally, our ness and streamlined, disciplined ac-acquisition process responded too quisition. Because no such systemreadily, and with inadequate concern was available in the commercial sec-for discipline, to these calls from the tor, we tailored "Fly Before You Buy,"fleet. As a result, we deployed some our traditional acquisition disciplinesystems that were not thoroughly methodology, to hardware-intensivetested. Moreover, we have deployed systems requiring a dedicated devel-carrier battle groups with immature opment effort.command and control systems thatrequire two months of grooming be- Today, most systems are software-fore the systems are fully functional intensive, and the commercial sectorafter the start of a deployment, has much to offer to satisfy military

requirements. To take advantage ofDiscipline is Essential to the products available commercially,Readiness to economize, and to speed acquisi-

Discipline in the acquisition pro- tion, the DoD launched a program tocess is exceedingly important. With- streamline acquisition. Streamliningout discipline we are in danger of efforts to date shunted aside many oflosing credibility, and we endanger the acquisition discipline measuresreadiness. If we lose credibility with from the original "Fly BeforeYou Buy"the oversight agencies and with the philosophy, and no new disciplineCongress, acquisition funding can be measures, tailored to match stream-lost. We could also lose the gains lined acquisition, are in effect.made by streamlining to this point. U Use OPEVAL as a final proof-of-Untested systems in the fleet and the-product test, but also as a Acquisition with inadequate disci-immature command and control sys- proof-of-the-process test for software pline can lead to loss of credibilitytems reduce our readiness. The threat developers, that could result in loss of fundinghere is that acquisition with inad- and loss of the gains made by stream-equate discipline can put us in a po- * Field new systems when they lining. It can also negatively affectsition where we can't deliver on our mature to the point where they ex- readiness and imperil our ability topromises in "From the Sea." ceedexistingcapabilities andare sup- deliver on our promises in "From the

portable. Then expand on system Sea."Characteristics of a faster, disci- capability with hardware and soft-

plined acquisition process should re- ware upgrades (evolutionary acqui- In order to bring the "Fly Beforeflect the following actions: sition). You Buy" philosophy in line with

today's environment, we should ac-Develop a less rigid, more sen- ° Conduct OT prior to fielding us- knowledge that we need a DoD ac-

sible requirement-setting process. ing sensible thresholds. quisition disciplining strategy encom-Requirements should iterate, and re- passing the following areas: more earlyquirements refining processes (like * Develop and use software OT to reduce risk; more trust betweenthe UNISYS model) should be used, metrics, oversight and program management;where appropriate. For NDI/COTS more innovative thinking to deviseacquisitions, the process of establish- ° Test cheaply by doing more con- more economic testing through com-ing requirements should follow these current DT and OT. Work to do bined DT/OT; more use of models,steps: the appropriate parties agree to nonintrusive OT concurrently with simulations and hardware in the loopthe list of test parameters to be mea- fleet training, facilities; and a more sensible ap-sured; then establish thresholds, if proach to requirements.possible; establishgoalswherethresh- ° Speed the approval process ofolds are not possible; and, if goals are key acquisition documents by using This new approach could be callednot possible, then test and compare concurrent review and approval, and "Fly Before You Buy, SC (Streamlinethe results to existing system perfor- electronic document transmission. Compatible)." This is not a radicallymance. new approach, but it does alter the

Summary characteristics of the basic philoso-* Test early (including OT) to reduce There is a direct link in "From the phy to remove those aspects that ac-

risk and to prove the product using Sea," to readiness, to acquisition. complished discipline by needlesslymodels, simulators and HIL facilities. "From the Sea" demands high readi- stretching the time for acquisition.

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THE PROJECT MA N A/GERSUIRVIVAL GUIDEThe Handbook forReal-World Pro ject Maoe

Battelle Pressby Donald Penner

he author, Dr. Donald Peniner, manager's professional goals, and to actions for the leader of each phase of

has over 20 years of experi- assess the potential of the project to the team's development.ence in program management, he realistically accomplished.

research and consulting for private The final two chapters deal withindustry and government. Based on Dr. Penmer then uses several of Peter the running andclosedown of a project.the experiences of the author and in- Drucker's key management functions The chapter on running a project con-terviews conducted with various ex-- asaframework fordiscussionson project tains a good discussion on the use ofecutives, line managers and project management. Leadership is discussed a concurrent control method, identi-managers, the book serves as a desk- from the perspective of responsibilities fled as "feedforward control," as op-top guide for project management. andauthority. The leadership skill ques- posed to the use of a "feedback con-Making use of an outline-type format, tionnaire is referenced as a tool to help trol" method. Dr. Penner stresses thatthe book can be read quickly, and you identify your effectiveness as a reducing the magnitude of errors in ainformation can be accessed easily, leader in a team-orieited environment. project in order to achieve more effec-Each chapter addresses a specific as- Htowever, the book falls short in that no tive control is essential. This, he as-pect of project management and in- other guidance is provided to assist the serts, can only be accomplished bycludes a section titled, "How to Get in manager in worlking to improve lower- identifying the critical inputs and pro-Trouble," which provides examples of rated qualities. cesses of a project and instituting thecommon pitfalls. use of "feedforward control" to ini-

Dr. Penner then addresses the key tiate corrective action early in the pro-The book also includes several ap-- manageient functions of planning cess.Thechapteronprojectclosedown

pendices. Two of the more notable and control. The use of a work break- emphasizes the need to document theappendices are questionnaires. One down structure (WBS) is presented as project, provide recognition of the per-can be used as a personal assessment one of the key elements in planning sonnelwho supported the project, andofyourleadership skills, usinga simple the application of available resources to develop a detailed closedown plan.rating system. The other is a project in project management. Buildinguponmanager's checklist that is designed the WBS as a management tool, the In summary, this is a short, conciseto help identify problem areas during authorrecomneidscreatingarespon- deskguide forprojectmanagement. Iteach stage of a project. This checklist sibility matrix and resource estiiates does not provide a complete cook-is a condensed version of the issues for the lower-level work packages. book for project management or a listaddressed earlier in the book. of miracle cures to help an ailing

Network charts, Gantt charts and project. However, it does provide key,The guide is designed primarily to risk management are discussed briefly basic points to remember when man-

assist a prospective project manager as additional planning and control aging a project and some recomiien-in preparing for project management. tools. Organizing and staffing are ad- dations to help promote the success ofInitially, the author provides guid- dressed from the perspective of meet- a project.ance in assessing the project and its ing project objectives. A great deal ofvalue to the manager. This is accom- emphasis is placed on the importanceplished through the use of critical ofdeveloping an organization that fos- Cdr. William Vaughan, USN, is aquestions the prospective manager ters the flow of work and the impor- Professor of Acquisition Management,should ask about the project. The in- tance of team building. The author Principles of Program Management De-tent is to determine if there is a good discusses the four stages of team de- partment, FacullyDivision,DefenseSys-match between the project and the velopmentandprovidesrecoiiimended terns Management College.

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L E AN LOdl'GI STI S

Its Time Has Com!Col. Arthur B. Morrill III, USAF

ome might suggest the mostprofound changes imaginable inour Air Force resulted inrestructuring of our operational

wings. While these were undeniablyfar-reaching changes, others mightconclude that from a logistics perspec- --

tive, even greater changes are those -- - --

affecting and improving our core logis-tics processes and capabilities. LeanLogistics is a system of innovationsthat does just that.

With this in mind, I'll addressthree components of this evolving AirForce logistics environment-change,challenge and opportunity. The sec-tion regarding ongoing change high-lights key initiatives under the "LeanLogistics" umbrella. Under challenges,I'll emphasize the need for logisti-cians to vigorously pursue continu-ous improvements in all aspects of mote combat capability, enhance our Lean Logistics is anthe logistics arena. And finally, I'll warfighting sustainability, shrink thesummarize how change and chal- logistics footprint and reduce infra- interrelated series oflenges will lead to opportunities for all structure. The goal is to enhance com-logisticians as we end this century. bat capability while reducing the an- logistics Initiatives

nual operating costs ofAirForcesystemsLean Logistics: A New Era of by adopting state-of-the art business that promote combatChange practices and streamlined processes,

Lean Logistics is an interrelated and byreducing infrastructurethrough- capability, enhanceseries of logistics initiatives that pro- out the Air Force logistics community.

Col. Morrill is the Executive Officer, Three ground rules apply. First, our warfightingDeputy Chief of Staff for Logistics, the Air Force "benchmarks" readi- susta ability,Headquarters, U.S. Air Force, the Pen- ness and system availability at re-tagon, Washington, D.C. He holds an quired Air Force rates to meet two, shrink the logisticsM.P.A. from Ball State University, Ind., nearly simultaneous major regionaland also received a B.S. from the Col- contingencies or peacetime commit- f ad reducelege of Great Falls, Mont., graduating ments-whichever are higher. Sec- footprintcum laude, with a double major in ond, Lean Logistics business prac- infrastructure.history and political science. tices and processes are applicable

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and effective in peacetime and during ("tooth-to-jawbone" says Lt. Gen. tons of engine maintenance and avi-contingencies, in the continental (Ret) Marquez). onics equipment! We're also relievedUnited States (CONUS) and over- of the need to put 50 avionics andseas. Third, logistics infrastructure For example, converting selected engine technicians in harm's way.reductions achieved by Lean Logis- avionics and engines from three totics allow the Air Force to operate two levels of maintenance reduces What makes this streamlining pos-effectively with fewer resources, while intermediate-level maintenance re- sible? The answer is deceptively simple:sustaining force structure, peacetime quirements, thereby permitting reduc- Two-Level's daily, time-certain deliv-optempo and combat readiness. tions in base-level maintenance and ery and return of critical spare parts.

support personnel, equipment and Daily time-certain delivery will use thefacilities. In addition, the Air Force commercial CONUS infrastructure ofalso achieves personnel savings by the CRAF express carrier in peacetime,reducing 4,430 manpower positions and Military Overnight Express (MOE)Air Force-wide from intermediate during contingencies. Military Over-maintenance, night Express is the military adaptation

of commercial overnight delivery. It con-Also, the Air Force reduces equip- sists of the express carrier's CONUS

ment purchases and maintenance by infrastructure, Air Mobility Command10 percent over the Future Years De- aircraft, and a theater distribution sys-fense Program. However, they maintain tem for express shipments. The Air

0 readiness under 2LM by controlling and Mobility Command will provide dailystreamlining all aspects of the repair round-trip, direct service between thepipeline. Broken parts move from bases express carriers' CONUS hubs and theto repair centers at Air Force depots and designated aerial ports of debarkation.then return to the bases, all at "high The theatercommanderwill establish avelocity" via highly reliable transporta- distribution system that provides next-tion. In doing so, depot repair centers day delivery of critical cargo.combine 2LM work with existing de-pot-repair capabilities. The elements that make Lean Logis-

tics initiatives invaluable to warfighters0 Finally, 2LM not only saves re- are high-velocity transportation and

sources, butalsoenhancesourability the highly reliable transportation ofto support contingencies by reducing parts in peacetime and during conflict,the "mobility footprint." Two-Level in CONUS and overseas. In fact, theseMaintenance relieves us from deploy- components serve as the foundationing intermediate repair equipment- for the Air Force's increasing use of

How does Lean Logistics change in an F-16 squadron, more than 100 modern business practices such asour current approach to logistics? Fig-ure 1 helps illustrate the improve- Figure 1. Changing the Logistics Processments. Our first foray into "leanerlogistics" and enhanced readiness was *A T L , LITwo-Level Maintenance (2LM), whichnow holds the prominent position in Characteristics Characteristicsthe Lean Logistics architecture. Two- - Big Inventory - Smaller InventoryLevel Maintenance is an Air Force - Slow/Uncertain Transport - High Velocity/Reliable Delivery

- Cumbersome Batch Repair - Optimum Repair Flowinitiative that was implemented on 1 - Static Processes - Continuous ImprovementOctober 1993 via a phased-in sched- - High Cost - Reduced Investmentule after a series of convincingly suc- Base Processes:cessful tests. The importance of this Base Processes: Lean Two-Level Maintenanceinitiative is twofold: Two-Level Main- Large Capital Investment -Lle Tioed Saitoac

- Big Peacetime Operating Stock (POS) Smaller Tailored Stockstenance improves the operational fo- - Big Readiness Spares Packages (RSP) - Streamlined Support Packagescus, while simultaneously reducing - Big Footprint - Light Footprintthe Air Force's mobility footprint andcosts associated with supporting Air BOTTOM LINE BOTTOM LINEForce weapon systems. It does so by - Big Inventory Drives Infrastructure -Innovations Streamline Infrastructure

improving the "tooth-to-tail" ratio S A

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just-in-time (JIT) inventory, Military by the mail order industry. This initia-Overnight Express. The Lean Logis- We should evaluate tive features the proven commercialtics "Building Chart" in Figure 2 illus- business practice of pre-addressedtrates the relationships. what we do, consider return shipment labels. Aside from

higher-velocity movement of criticalWhile a number of other Lean Logis- why we do it, assess spares, its benefit is that commercial

tics initiatives are still in varying stages of express carriers provide system equip-development, two other Lean Logistics what it gives us, and ment to create all shipment docu-initiatives already implemented de- mentation. Another plus is that noserve mention: Door-to-Door Distribu- determine if the output capital investment is required for ad-tion (D3) and Repair and Return Packag- ditional shipment hardware-aing(R 2P).You'llrecallthatLogAirwasan is worth the input double bonus!integrated system of contract aircraft andtrucks established to expedite the move- given today's security The magnitude of change that couldment of reparables to, from, and be- potentially result from these and othertween Air Force bases and their support- requirements and Lean Logistics initiatives is awesomeingdepots. Budgetaryandforce structure for some, perhaps intimidating forchanges prompted us to look at LogAir's resource limitations, others. For example, some logisticianseffectiveness. As a result, we established may be concerned that with initia-the LOG EXPRESS Tiger Team to study Another key Lean Logistics initia- tives such as 2LM, base-level opera-LogAir and its alternatives. tive changing the way we do business tional maintenance is on the verge of

is Repairand Return Packaging (R2P). extinction. Others may believe thatWe found that while LogAir costs Implemented in conjunction with 2LM, with Base Realignment and Closure

$116 million annually, D3 costs only R2P works to increase the movement Commission-induced Service depot$33 million per year! Door-to-Door velocity of critical spares (high-value, closures, the Services' organic depotDistribution uses commercial pre- short-supply) by minimizing the num- maintenance mayalso be on thewane.mium express transportation for high- berofphysicalhandling nodes, therebypriority cargo, and surface transpor- entering the spares into the transporta- Neither conclusion could be fur-tation for routine, hazardous, tion and repair pipeline sooner. ther from the truth since maintenanceoversized and classified cargo. In capabilities in both of these areas willshort, D3is more bang for the buck- In brief, the Air Force adapted the continue to be integral to preservingit costs less, yet it's more responsive, successful business practice of "re- and enhancing our Air Force's globalguaranteed and on-time. turn labeling," which was pioneered reach and power-either as a stand-

alone capability, or in concert withFigure 2. The Lean Logistics Building other Services, joint activities or the

private sector. In short, this new erais one in which opportunities for lo-gisticians should be seen as

LEAN LOGISTICS growing...not shrinking.

Business Practices The Challenge to Logisticians:

1] hi iiEmbrace InnovationThe challenge this new era in lo-

2LM R2P M3 CMvjos EDI JIT 12P gistics poses makes it critical that AirForce logisticians chart the course

of Air Force logistics in the comingMilitary Overnight Express (MOE) years by encouraging innovation and

by leading the effort to implementDoor-to-Door Distribution (D3) continuous improvements to busi-

ness practices and logistics processes.2LM: Two Level Maintenance EDI: Electronic Data InterchangeR2P: Repair & Return Packaging JIT: Just-In-Time Practices Does this increasing focus on con-M3: Mail-Like Matter Movement 12P: Industry Information Processor tinuous improvement mean we

CMOS: Cargo Movement Operations System should automatically discard cur-

Source: HO USAF/LGT .rent Air Force business practices andlogistics processes? Absolutely not!

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and reduce user costs while deliver- by gaining experience in operationalSing a certain level of product quality and industrial logistics-at a variety,. or capability. of levels, CONUS and overseas.

" Examplesofthislattergroupmight Initially, this should be accom-a- include lIT practices, improved plished in one's primary logistics Air= 'make-or-buy" decision trees, stream- Force Specialty Code. However, sub-a- lined commodity management, and sequent experience in other logistics

flexible manufacturingandrepairpro- specialties can only enhance one'scesses. The point is this: Whether we abilities as a logistician. Why? Theapply an entire discipline or just one answer is that despite change, theprinciple, we're only just now discov- kinds of professional credentials weering our capabilities for improving hold as important still remain impor-our logistics practices and processes- tant-because they give logisticiansand logisticians should be at the fore- the tools they need to be innovativefront of this discovery. But, while this leaders in the current and future lo-discovery should be unconstrained, it gistics environments.should also be focused-and leader-USAF (Ret.) ship is the key. The demographics of professional

We should evaluate what we do, con- trainingandcivilian education notwith-siderwhywe doit, assess what itgives Opportunities for Leadership: standing, however, the core message isus, and determine if the output is The Benefit of Innovation this: The depth and breadth of anworth the input given today's security With the restructuring of our op- individual's experience is still mostrequirements and resource limita- erational wings and reduced defense important. Second, we can enhancetions. Then, if change is needed, we budgets come great opportunities for our abilities as military logisticians toshould look everyvhere-anywhere- logisticians to exercise leadership at better support the Air Force vision-Airfor a better way to do the job at hand all levels by fostering and implement- Force people building the world's mostand the job we expect to do in the ing innovation in every area of logis- respected air and space force - globalfuture. tics. Such leadership opportunities power and reach forAmerica-by bring-

come with the prerequisite to expand ing our military experience, trainingContinuous improvement means one's experience base and develop and education to bear on our profes-

studying what works, what doesn't, one's professional skills. Foremost, sion of military logistics, making surewhy, and under what conditions. It logisticians achieve this prerequisite they all complement each other.may even mean looking to non-tradi-tional sources for answers to tradi-tional problems-something we'reincreasingly doing. For example, whatAir Force logistician would havethought 10 years ago that the com-mercial mail order industry's "returnlabeling" business practice would helpus develop the R2P concept that wenow use to support Air Force weaponsystems at reduced cost?

Where do we go for inspiration?What areas are ripe for examinationfrom the macro- and micro-perspec-tives? Several disciplines and prin-ciples are likely sources of innovationaffecting Air Force logistics practicesand processes. A short list of suchdisciplines might include industrialengineering or public administration Two-Level Maintenance relieves us from deploying intermediate repair equipment in an

F-16 squadron, more than 100 tons of engine maintenance and avionics equipment. Pic-A likely list of useful principles might tured: F-16C Falcon assigned to the 422d Test and Evaluation Squadron, Nellis Air Forcebe those that increase user control Base, Nevada.

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However, we're also discovering W'Vhether we apply anthrough our Lean Logistics efforts thatexposure to, and the application of, the entire discipline or just

NEW DSMC POLIY civilian educational disciplines and pri-vate-sector business practices to the one principle, we're onlymilitary logistics arena are of growing

DSMC importance. Perhaps it's this area that just now discovering ouroffers us greatest promise for continu-

GUIDEBOOK ous process improvements in military capabilities forlogistics. With this in mind, let me share

* some thoughts expressed by General improving our logisticsDISTRIBUTION Merrill A. McPeak, former U.S. Air Force

Chief of Staff, at the first Quality Air practices andForce Symposium held in October 1994 processes-and

SINGLE COPIES in Montgomery, Alabama:

ARE AVAILABLE ...we can't relax. We must re- logisticians should be at

AT NO COST main open to new ideas. We the forefront of thisTO GOVERNMENT have to make the Air Force bet-

ter. We can't afford to throttle discovery.PERSONNEL back and level off-we must al-

BY WRITING OR FAXING A REQUEST ways have a good rate of climb, the using commands. User efforts likeON OFFICIAL STATIONERY TO THE My position is that people Fast Fix and Gold Flag are important

should come in every morning as they reduce demand through theDEFENSE SYST MGMT COLG saying this is a great place to base-level repair of selected parts,

ATTN OSPR work, but there's still room for vice disposing of these parts or send-9820 BELVOIR RD SUITE G38 improvement. The Secretary and ing them back to depots for repair.FT BELVOIR VA 22060-5565 1 expect you to continue push-

ing the limits of excellence. Likewise, reduced costs in the sup-OR FAX (703)805-3726 When others look for an ex- port organizations can reduce direct

ample of a quality operation, we costs of labor and materials, and canGOVERNMENT want them to think first of the reduceoverheadfrominfrastructureand

PERSONNEL MAY United States Air Force. personnel. Finally, improved program-ming from the Air Staff can make our

PURCHASE We do need to continue to push internal procedures more responsive,

MULTIPLE COPIES the limits of excellence, and Lean thereby allowing us to better captureLogistics is a key means to do so- savings from major command initia-

AND because it's the system of continu- tives sooner in the budget process.

NONGOVERNMENT ous improvements that brings our lo-

PERSONNEL gistics structure in line with force We can maintain our fighting edgestructure. We also must reduce our and live within our budgets if we do

MAY PURCHASE logistics support costs while keeping, these things-smartly. The efficien-

ONE OR MORE COPIES if not enhancing, our support capabil- cies realized from Lean Logistics andIN WRITING FROM THE ity. Our challenge: Minimize logistics comparable conceptswill help finance

infrastructure while building and sus- our commitment to our people, ourSUPERINTENDENT OF DOCUMENTS taining a ready force. technological edge and our readiness.

U.S. GOVERNMENT PRINTING OFFICE We must size, structure and manageWASHINGTON, DC 20204 A concept as powerful as Lean our logistics resources carefully if we

Logistics, however, can't support the are to continue fielding the world'sOR BY ORDERING ON level of reductions we'll face in the most respected air and space forces.MASTERCARD OR VISA next few years. As a result, the Chief Through Lean Logistics and our indi-

(202) 783-3238 directed an effort to reduce opera- vidual and collective efforts, we'll turn

tions and sustainability costs for our this vision into a living reality. As weweapon systems. Reductions in own- prepare to enter the 21 st century, theership costs will likely come from re- opportunity to do so is ours for theduced demand and consumption from taking.

Program Manager 18 January-February 1995

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LETTERS TO THE EDITOR

I read with interest the short discussion in the jul- Staff General Gabriel and then Secretary of the AirAug 94 issue of Program Manager, article titled Force Orr, primarily focused at the operational flag"Insufficiently Robust DT&E Means Trouble Ahead officers. These officers were the ones that appeared,for OT&E" by Raymond Reig, about the Air Force at that time, to not understand the impact thatBOLD STROKE program. software was/is making to our warfighting abilities.

The Forum is not a one-week course; it is two days.The BOLD STROKE Forum on Software Manage- The Forum is not conducted by the "Professional

ment was originally designed for general officers to Development Institute" (whoever that is), but by theincrease the awareness of these officers to the im- Technology Management School, under the Collegepact that software has made to the warfighting for Professional Development, under Air Universitycapabilities of the Air Force, and the force enhance- at Maxwell Air Force Base, Ala. Our functionalment increases that software allows. However, this sponsor that we work with on curriculum andspeakercourse is not only for general officers. We currently selection is Mr. Lloyd Mosemann, SAF/AQK.offer three courses per year for general officers andthree for colonels and GM-15s. Any questions concerning BOLD STROKE can be

answered by calling the school at DSN 493-7826, orThe BOLD STROKE course was not designed by Commercial (205) 953-7826. We are always inter-

Defense Systems Management College for the Air ested in good speakers in students that are wantingForce Systems Command. It was designed by Air to learn more about software in the Air Force.University in 1985, at the direction of then Chief of

Gerald L. OuradaCaptain, USAFCourse Director

Cadet J. Jeremy Marsh's well-researched, com- Up to the summer of 1943, their flight path wasprehensive and informative article "Liberators, quite often accentuated by the white puffs of Ger-Mustangs and'Enola Gay"' (Program Manager, Sep- man 88mm flak shells exploding harmlessly at theirtember-October 1994), evoked some lively memo- maximum effective range, about 500 to 1,000 metersries from my childhood in Germany during WW II. below their unreachable targets. By the time theThey turn personally extremely unpleasant when Germans had gotten around to fielding the longer-recalling a Mustang sortie in September 1944 on a range 127mm antiaircraft gun, American bombertrain in the German Saar region. I only survived design had already accounted for this new threat bybecause one of the pilots chose to make a slight turn extending the bombers' altitude capability, propul-to the left, which made the spray from his outer right sion power and armor protection.machine gun pass about a yard from me.

I feel this article is of considerable value from theMustangs were particularly feared by the Ger- viewpoint of acquisition management, specifically

mans because of their low-altitude capability, high as concerns requirements-based rapid design man-firepower and low engine noise level. As for the agement, and user-developer-industry interaction.Liberators and Flying Fortresses, we used to count It is also an excellent study in military history,them, by the hundreds, in the bright and sunny sky focusing on what I consider to be the decisive aspectas their groups and wings were heading in undis- in the outcome of WW II.turbed, parade-like formation, toward yet anothercarpet bombing target in Germany. Hermann 0. Pfrengle

Honorary International ProfessorMultinational Program Management

Program Manager 19 January-February 1995

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An Essential Element of theDoD Logistics System

Richard S. Cunningham

he American Heritage Dictionay Packaging design must fa-of the English Language defines cilitate these handling, star- - .. _

logistics as "the procurement, age and transportation con-distribution, maintenance and ditions and must provide for

replacement of materiel and person- a means of inspecting andnel." The DoD logistics system is much maintaining the materielmore than this. while in storage. Packaging

personnel must be respon-In addition to the procurement, sibleforthesafety, healthand

distribution, maintenance and re- environmental impact of their 4placement of materiel and personnel, decisions. They must be re-the DoDlogistics system also includes, sponsive to the needs andbut is not limited to, the disciplines of concerns ofpackaging, handling, shipping, star- society as,age and transportation. Its primary well asmission is to provide the soldier, sailor t 0and airman-the ultimate users-with thewhat they need, when they need it needsand where they need it, and to pro- and con-vide it in a usable configuration and cerns of the miii-condition. tary personnel they

serve.A Vital Role

The role of packaging is to afford Mission-Essentialprotection against physical damage All of this makes packaging sound b a r r e I sand environmentally induced dete- pretty important, doesn't it? Well, the were corroded be-rioration. Moreover, packaging must truth is that packaging is a vitally cause someone failed to applyprovide this protection within a con- important and essential element in the required preservatives? Or whattext of unknown and varied condi- the logistician's periodic table. If one would service members do if theytions that exist in the handling, star- of the other logistical elements fails couldn't get a canteen of drinkingage and transportation network. such as shipping or storage, service waterbecause someone failedto prop-

members can still function for an ex- erly preserve or pack the water purifi-tended period of time. However, if the cation equipment? Many more ex-

Mr. Cunningham is a Senior Train- element of packaging fails, they may amples could be cited, but theywoulding Specialist, U.S. Army Logistics not be able to function at all. all invariably have a negative result.Management College, School of Mili-tary Packaging Technology, Aberdeen What would tank crew members The bottom line is that even thoughProving Ground, Md. do if they found that their gun tube packaging is vitally important to our

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success, most of us take it for granted. of millions of dollars. Recent studiesWe don't think about it until some- showed decisively that depot-levelthing is received broken or corroded, reparable materiel returned for re-or just doesn't work. That's when "the pair was often damaged or degradedproof is in the packaging" becomes as a result of improper or inadequate ., E 'reality, packaging or processing. Because of

packaging's vital role in our everydayIn the past, packaging was consid- operations, military and civilian DoD

ered by many to be merely something personnel \vho process and packthat was nice to have-not mission- materiel must be sufficiently trained ifessential. If a commander had extra this negative trend is to be reversed.money to spend, he would rather buyan additional squad tent or extra field Packaging personnel often findtables than buy a heat sealer or a themselves in a Catch 22 situation.pallet load of fiberboardboxes. Maybe They may possess the necessary pack-that was okay 10 years ago, but it's aging skills, but do not have the pack- ]'4r. James E. Price became

not okay now. aging materials and equipment re- .L the new Dean, Research,quired to perform their packaging Consulting and Information Di-duties. Conversely, they may have vision, effective9January 1995.the required packaging materials and He previously served as a Chair,

- ... equipment but do not possess the-- ..... necessary packaging skills to perform Integrative Program Manage-

a packaging function. The most im- ment Department, Faculty Di-portant commodity in DoD's packag- vision.ing community is its people-it takespeople to successfully perform the Jim joined the faculty of DSMCpackaging mission. The most sophis- in January 1992 and holds anticated equipment in the world is A.A. in Management, Univer-worthless if no one is properly trained sity of Maryland, 1972; a B.S. into operate it. Business, University of Mary-

land, 1974; an M.S. in Busi-With DoD's imple- ness, Central Michigan Univer-

mentationof sity, 1976; and a Ph.D. in PublicFunding of Policy (Science and Technol-

Depot Level ogy Policy) from George Mason

Reparables (SFDLR) University, 1993.Program, packaging in the

military has never been moreimportant, and the need for addi-

tional, in-depth, formal packaging personnel who perform a packagingPackaging for training at all levels has never been function.

the Future more paramount. Under the SFDLRAs the terms "downsizing, draw- Program, units will receive a percent- In our continued efforts to do

down, reorganizing andbase closure" age of credit when they turn in ser- more with less, we must better uti-become part of our everyday lexicon, viceable and unserviceable materiel. lize our resources, including ourwe are faced with the reality of having The amount of credit received will be personnel. As the DoD moves to-to do more with less. This realization predicated on the condition of the ward a smaller, quicker, more mo-is never more evident than in the field materiel when it arrives at the servic- bile military, and as the role of pack-of packaging. ing depot. When the SFDLR is fully aging becomes more critical to its

implemented, the careless identifica- success, the need for trained pack-The dollar value of materiel re- tion, packaging and transporting of aging personnel has never been

turned from Desert Shield/Desert reparables will directly cost units from greater. We must now make theStorm that was ruined because of their stock funds. Some type offormal funds available for formal packag-improper or inadequate packaging packaging training, therefore, is im- ing training at all levels. We cannotprotection may run into the hundreds perative for all military and civilian wait for later. LATER IS NOW!

Program Manager 21 January-February 1995

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AMERKICAR'S ERODINGl

A Program Management Concern?Lt. Cdr Steve Eastburg, USNThe six weeks of Desert Storm sight optics and an ingredient in the

dramatically drove home a vital seal, which were also made by over-fact that the U.S. seemingly seas companies.'failed to appreciate fully in the

four decades spanned by the Cold The extent of this nation's foreign .War. This nation is becoming alarm- dependence cannot be preciselyquan-ingly dependent upon foreign sources tified. What is known, however, is ,of technologies critical to our most that there no longer exists any majorsophisticated weapons systems. U.S. producer of robots. Overseas in-While the warning signs were there vestors also acquired the last majorfor some time, the Gulf War dramati- American manufacturer of siliconcally highlighted the problem of for- wafers, a component critical to pro-.. :!

eign technology dependence. duction of semiconductors. This coun-try also lost its lead in the manufac- A

The Framework for Concern ture of supercomputers, optoelec-Of interest is the fact that this con- tronics, semiconductors, digital im- products to enhance the

dition surfaced despite the spectacu- aging, and in dozens of additional financial standingof theirlar performance of America's sophis- critical technologies. 2 own industries.4

ticatedweaponry. Much of the successof these weapons must be attributed Numerous government reports over The implications of ato a vast array of system components the past several years warned of the nation's forfeiture of itsdevelopedandmanufacturedbyover- erosion of U.S. industrial competi- technological competi-seas competitors. Among this long list tiveness. A 1990 Commerce Depart- tiveness are fairly wellwere such items as optical glass used ment study reported that this country known in an economicin reconnaissance satellites, manu- lost competitive advantage to Japan sense. However, the im-factured in Germany; gallium- in all but three of 12 key technolo- pact upon national mili-arsenide semiconductor chips found gies. 3 That the potential loss of con- tary security, an arenain satellite and radar receivers from trol over these advanced technolo- where the stakes areJapan; and five different parts of the gies portends deleterious impact upon even higher, is less wellAbrams tank, including the gunner's a broad range of industrial capabili- understood. According

ties is widely recognized.

Generally, with the loss of technolo-Lt. Cmdr. Eastburg serves as Project gies also flows a diminished job base,

Officer, Tomahawk Program Office, lost national income and prestige, aProgram Executive Officer, Cruise Mis- lowered standard of living, lost marketsues Project and Unmanned Aerial share, and an increased trade deficit.Vehicles Joint Project, Crystal City, Loss of control also places the U.S. inVirginia. Cmdr. Eastburg was a mem- the situation where overseas competi-ber of PMC 94-1. tors could raise prices or even withhold

Program Manager 22 January-February 1995

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to a 1991 Defense Science Board as- among many senior U.S. policy mak- to this important question lies in rec-sessment, the U.S. military was "dan- ers about how to ensure future combat ognizing and understanding the de-gerously dependent" upon foreign readiness in the event that this coun- gree to which programs rely on for-suppliers for spare parts and tech- trywouldencountershortagesofcom- eign sources for critical technologiesnologies critical to operating many ponents from non-cooperative over- and parts support. The answer alsoweapons systems.- A 1991 report from seas suppliers during future conflicts. resides in appreciating the PM's re-the Office of Technology Assessment sponsibility, as detailed in governingnoted that "almost all U.S. weapon The Program Manager's acquisition regulations, to considersystems contain component parts Dilemma the impact of programmatic decisionsfrom foreign sources."" It appears obvious why an issue upon the defense industrial base.

such as foreign technology depen-DuringtheGulfconflict, manyU.S. dence might capture the interest of It might be of value to review what

military commanders found that even and invite speculation from econo- existing guidance is provided in thewith significant cooperation from for- mists, international traders, and per- applicable acquisition instructions.eign governments, existing depen- haps even national security special- DoD Instruction (DoDI) 5000.2 (Partdence upon overseas suppliers greatly ists. But why should such a 5, Section E) states the following:complicated the efficient flow oflogis- macroeconomic and trade concerntics supplies to U.S. forces in the field. be of even remote interest to military Plans and actions must ensureThis situation also raised concerns program managers (PM)? The answer that adequate industrial capa-

bility exists to produce, in anefficient and cost-effective man-ner, the goods and services re-quired to meet DoD missions...

The DoD Federal Acquisition Regu-lation Supplement (DFARS) also has

.. something to say about responsibilities: .... . . that government PMs shoulder in ad-

dressing the national technology andindustrial base. Part 207 (AcquisitionPlanning) specifically states that majordefense acquisition program planningB must address the following areas:

An analysis of the capabilities ofthe national technology and indus-trial base to develop, produce, main-tain and support programs, includingconsideration of the following factorsrelated to foreign dependency:

.. Identification of items that areavailable only from sources outside

... .the national technology and indus-trial base if such items become un-available from sources outside thenational technology industrial base.

- Analysis of any military vulner-ability that could result from the lackof reasonable alternatives.

- The effects on the national tech-

A. MIAI Abrams Tank D. USS Normandy (CG-60) D nology and industrial base that resultB. F-I17A Stealth Fighter from foreign acquisition of firms inC. U.S. Nave Tomahawk Cruise Missile the United States.

Program Manager 23 January-February 1995

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Becauseoftheacknowledgeddiffi- enable government and contractor debate. Ultimately, the debate willculty and arcane nature of attempting PMs to make prudent choices in iden- come home to roost in the backyardsto forecast industry activity, particu- tifying the technologies that they of the military-user communities,larly those aspects involving corpo- project as available for inclusion in which will be held accountable forrate acquisitions and mergers, viabil- developing systems, and that they supporting and maintaining systemsity of the defense industrial base has estimate as supportable in the in operational environments. Thenot always represented an area of out-years of a system's life cycle. PM's responsibility to the user corn-concentrated attention from PMs. Similarly, the database would en- munity demands proactive involve-Nevertheless, political, military, eco- able program offices to steer the de- ment in comprehensively addressingnomic and social pressures will in- sign of their systems away from a the various impacts upon a system ofcreasingly compel program offices to dependence upon technologies that technology migration.direct attention to the impact upon are in danger of being fully acquiredtheir programs of America's migrat- by foreign interests. As the trend of foreign acquisitioning, and in some cases eroding, de- of American high-technology compa-fense industrial base. The question Within the bounds of what makes nies continues, military PMs will likelythat ultimately arises, then, is what goodeconomicsense, thegovernment encounter increasingly formidablesteps can be taken to influence and should place an emphasis upon re- challenges developing systems thatrespond appropriately to the dynam- warding companies for automating are not over-reliant upon critical tech-ics of this changing technology mar- their manufacturing plants. Likewise, nologies owned exclusively by over-ketplace? firms should be compensated for re- seas companies. Only by directing

taining critical organic production careful consideration to the sourceThe Way Out capabilities, as opposed to contract- and supportability of components

From the vantage point of the typi- ing-out forvarious specialized manu- selected for inclusion in developingcal program office, seemingly little facturing processes. These corporate weapons systems, will PMs be as-overt influence can be brought to bear capabilities could be considered dur- sured that available and affordablein meeting the national challenge of ing the source selection process, as life-cycle support of these systemsreinvigorating America's diminishing well as during other contract award will exist well into the future.high-technology market share. Nev- and administration activities.ertheless, a coordinated response toguidance contained in DoDI 5000.2 Any U.S. corporations with con- EndnotesandDFARSPart207willprovidesome tracts for critical weapons systemsmodicum of insurance against inad- that are not presently doing so would 1. Pollack, Andrew, "In LI.S. Technol-vertently designing a system contain- be advised to identify alternate manu- ogy, a Gap Between Arms and VCRs,"ing potentially insupportable foreign facturing materials and processes, New York Times, March 4, 1991, p.technology or components. including those that are readily avail- D8.

able from American producers. De- 2. Tolchin, Martin and Susan, SellingIn considering tradeoffs among fense firms, of course, should main- our Security: The Erosion of America's

competing technologies, PMs would tain a healthy vigilance of the status Assets (New York: Alfred A. Knopf,be advised to insist upon the develop- of their suppliers, and should remain 1992), p. 5.mentofsystemarchitecturescontain- cognizant of industry forecasts of the 3. U.S. Department of Commerce,ingtechnologiesandcomponentsthat availability of existing critical materi- Emerging Technologies: A Sunvey ofareprojectedtobecontinuouslyavail- als. Companies should also continu- Technical and Economic Opportuni-able over the system's entire life cycle. ously seek to identify materials and ties, Spring 1990, p. 13.In support of this design approach, processes that could be substituted 4. Tolchin, p. 4.efforts should be initiated to make for those presently employed. This 5. Department of Defense, Report ofavailable to the defense systems ac- effort should be undertaken not sim- the Defense Science Board Study of thequisition communities a database that ply with the objective of reducing cur- Defense Industrial and Technologydetails the status of various critical rent unit production costs, but also as Base, October 1988.technologies. ahedgeagainstincurringinflatedcosts 6. U.S. Congress, Office of Technol-

as a result of a future takeover of a ogy Assessment, Arming our Allies:This database could be used to supplier by an overseas investor. Cooperation and Competition in Dc-

track those technologies and spe- fense Technology, May 1989, p. 5.cialized components that are either The prospect of diminished miili- 7. O'Rourke, Ronald, Congressionalexclusively held by foreign concerns, tary preparedness arising from emi- Research Service, Persian Gulf War:or are in danger of achieving that gration of selected technologies from Defense Policy Implications for Con-status. Likewise, the database would the U.S. is a topic of intense public gress, May 15, 1991, p. 7 1.

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"US VERSUS THEM" ATTITUDEIMPROVES AFTER COURSEDSMC Gaming in Classes Offers an Open

Environment for Sharing IdeasVincent P. Grimes

W alking into a class at the Defense Professors make it clear the pur-Systems Management College pose of classes and the College is to(DSMC) to see Pentagon educate. The goal is to teach studentsacquisition professionals and to understand general acquisition

industry managers building toy pup management principles. Students,tents makes one wonder how effec- however, come to courses withtively public money is being spent. some preconceived notions.Seeing acquisition managers sitting When courses begin, clearlyaround a table rolling dice and mov- they have one primary objec-ing poker chips from one place to tive - certification as acqui-another also may raise eyebrows. sition corps professionals.

There is a method to this madness Ticket Punchingat DSMC. Professors blend hands-on Attendingcoursesisactivities with lessons on manufac- "ticketepunch-turing principles and management ing or havingphilosophies. According to those at- the right boxtending courses, this teaching style is checked offmore interesting, informative, and in the person-leaves a stronger impression than nel folder,"actraining programs regarded by par- cording to oneticipants as "death by viewgraph." professor.Classes are not exercises in learninghow to fill out forms.

Mr. Grimes is currently the SeniorWriter, National DEFENSE magazine.He initially wrote a similar article describ-ing his experiences as a fonner DSMCgraduate of the Level II Defense Manu-facturingManagement Course (DMMC).When the Course Director, Lt. Col. GeorgeA. Noyes III, spotted the article in Na-tional DEFENSE magazine, we contactedMr. Grimes for a follow-up. The course isnow offered at the Air Force Institute ofTechnology (AFIT).

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Another gives a similar view: "Some helped change his attitude. "At the shelf systems, where appropriate. Sec-government students consider a end of the course I realized that you retary Perry's goal is to make theDSMC course an unwanted diversion depend on contractors, and they are Defense Department a world-classfrom their jobs." honest people trying to do the best consumer.

they can in a complex atmosphere,"During the courses, attitudes and Gen. Bolton recalls. Many students do not understand

prejudices change. The teaching en- the commercial ISO-9000 standardsvironment and the classroom interac- Classes also provide opportuni- program. Since its importance willtion are responsible in large part for ties for Defense Department repre- grow as commercial specificationsthe altered mindset. sentatives at commercial manufac- replace military standards, classes are

turing plants to discuss acquisition madeawareoflSO-9000'sbroadpro-A reason for the changing attitude policy issues with their colleagues visions. The College is adjusting its

is the College's longstanding policy of involved in program management and course curriculum to pay additionalnon-attribution for speakers, profes- contracting. attention to commercial standards andsors and students. The policy pro- off-the shelf procurement.motes an environment for the free A point made throughout theand open exchange of information courses is understanding the relation- Besides attempting to becomeand ideas. The students say the abil- ships between a system's cost, pro- world-class customers, the Pentagon'sity to speak freely and provide per- duction run and performance charac- acquisition workforce is becomingsonal experiences enriches the class. teristics. The basic economic law of more aware of environmental protec-

decreased production rates causing a tion issues. The growing importanceAnother factor in the shifting atti- rise in the per unit cost is mentioned of environmental regulations is evi-

tudes is the student mix. In each at every opportunity. denced by a substantial chunk of onecourse, approximately seven percent day's instruction being devoted to thecome from industry. The remainder Transitioning from prototype con- topic.are military and civilian professionals struction to full-scale production isfrom often competing Army, Navy, also a challenge acquisition profes- Not understanding environmentalAir Force and Defense Department sionals must be prepared to meet. The laws can have dire consequences foragencies, realization that the use of a low-rate program management. Students dis-

initial production phase does not al- cuss their own horror stories of hay-Some tension and a bit of surprise ways reduce program uncertainties ing to deal with conflicting environ-

are evident when the military's acqui- when part of an acquisition strategy is mental laws, regulations, and thesition students discover several of their driven home by case study reviews, advice of superiors and legal counsel.classmates come from industry. The Ultimately, understanding acquisition The growing number and complexityadversarial relationship that has de- principles and programmatic chal- of laws covering manufacturing, han-veloped between the two groups is lenges provides a framework in which dling and disposal of toxic materialsinitially evident, changes in acquisition regulations and presents a challenge to the acquisi-

new environmental requirements can tion corps. Program managers can beIn discussions with professors, it be placed. heldpersonallyliable forviolations of

becomes clear that bringing together environmental regulations.people from government and indus- World-Class Customerstry serves a vital function. As courses The military can no longer afford to Gaining an understanding of com-progress, the interaction between the maintain a separate defense indus- mercial standards and environmen-students leads to a better understand- trial base regulated by more than tal regulations are just two examplesing of the interrelationship between 30,000 military specifications and of how DSMC courses teach studentsall the parts of the acquisition, devel- standards. The fast-paced cycle of and help change their attitudes. Asopment and manufacturing process. technological change is also forcing we enter an era of intense acquisition

the military to use commercially de- reform and streamlining, cooperationAttitude Change veloped systems. between government acquisition per-

Brig. Gen. Claude M. Bolton, Jr., sonnel and industry representativesUSAF, DSMC Commandant, says his Defense Secretary William J. Perry will take on added emphasis. In thisperception before taking a course at mandated the use of commercial area, the College is at the forefront,the College was that "industry was specifications, such as the ubiquitous daily teaching students to better un-out to take advantage of the govern- ISO-9000 standard, for new acquisi- derstandthe acquisition, developmentment." However, the students from tion programs. He also encouraged and manufacturing processes as seenthe defense industry and the College the purchase of commercial off-the- from each other's perspective.

Program Manager 26 January-February 1995

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A DECADE OF SUCCESS ANDFAILURE IN THE DOD

ACQUISITION SYSTEMA Continuing Quality Journey

Raymond W. Reig

recent research effort identified FIGURE 1. Results: Ratio of Actual vs. Plannedthe current "track record" of 4.50Department of Defense weapon 400systems acquisitions. In the

spring of 1993, the office of the Direc- 3.50

tor of Operational Test and Evalua- 3.00tion (DOT&E), asked DSMC to un- $ EMD-

Act/ 2.50dertake a research study of the current PlanD oD acquisition system for a very Budget 2.00 - ...........................................--

specific reason.' Since 1991, Con- 1.50 * a

gressional law requires the DOT&E tospecify at Milestone II, the number of .00...a

Within Budgettest articles required for the Initial 0.50 Within ScheduleOperational Test and Evaluation in 0.00 - I Ithe Army and Air Force, and Opera- 0.00 0.50 1.00 1.50 2.00 2.50 3.00tional Evaluation in the Naval Ser- EMD-Act/Plan Schedulevices (IOTE/OPEVAL) system test.The office desired to know if there was Engineering and Manufacturing expenditures. The Milestone III DABhistorical data that would help in Development Phase information gave us actual activitiesmaking this important, and possibly Because the acquisition phase of and costs incurred during EMD. Wecostly decision, interest was the Engineering and were particularly interested in the

Manufacturing Development phase planned and actual costs for EMD, and(EMD), we concentrated our efforts the planned and actual schedule. Toon this phase exclusively. We sur- gather this data, we also looked at the

(Editor's Note: In the July-August rised that if we reviewed the data annual Selected Acquisition Reportissue of Program Manager, Professor within the "Blue Books" prepared for (SAR) for the year the program con-Reig commented on the acquisition of Defense Acquisition Board (DAB) ducted its Milestone III DAB meeting.software-intensive systems. This ar- meetings at Milestone II and Mile-ticle reviews the acquisition history of stone III, we could determine the We applied this approach to 2424 recent programs of all types.) program's success in adhering to its recent DoD acquisition programs. As

EMD phase. "Blue Books" are sum- we reviewed the DAB "Blue Books"mary program plans and data com- and program SARs, we recognized

Professor Reig is on the faculty at piled for the use of DAB principals that we could extract much more in-DSMC. He is a graduate of the U.S. and staff assistants immediately prior formation than was necessary to an-NavalAcademy, New York University, to milestone meetings. swer the basic question:Auburn University, Southern IllinoisUniversity, the Air War College and Milestone II DAB information gave Is there a relationship betweenPMC 90-1. us the program's planned activities and the number of Low Rate Initial

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Production (LRIP) articles used fined as a low schedule overrun.) We able well before the operational test isfor testing in EMD/IOTE/ are dividing the number of the LRIP supposed to start."OPEVAL, and the success of test articles used within a program bythat program? the total planned production quan- Evaluation Scheme

tity, expressed as a percentage. This Further, in order to evaluate theAlso, we intuitively assumed that is compared to the probability of the impact of the other variables, we de-

LRIP quantity alone could not ac- program having an EMD schedule vised a standard program success rat-count for the success of any program slip less than 50 percent. These data ing scale of one to five. Five indicatedin EMD. We identified six other vari- (21 programs) show that programs the program was "Very Successful,"ables that could affect a program dur- using three percent or more LRIP test essentially on planned budget anding EMD and gathered this data as articles historically never exceeded a schedule. A rating of four indicatedwell. 50-percent schedule slip, and the the program was "Successful," ex-

probability steadily increased as the ceeding the EMD budget by less thanThe net result of this approach is three-percent mark was approached. 30 percent, and exceeding the sched-

that we gathered data from the EMD ule by less than 12 months. Threephase that - The data also show that 28 percent indicated a "Fairly Successful" pro-

1. determined how successful these of the total LRIP quantity was ac- gram, exceeding the budget by less24 programs were in meeting their quired with research, development, than 45 percent, and the schedule byplanned EMD cost and schedule; test and evaluation funds and pre- less than 18 months. The two lower2. determined the relationship be- sumably used for testing. The remain- success ratings decrement by 15 per-

tween LRIP test quantities and pro- ing 72 percent was presumably used cent for budget overruns and sixgram success; and for other than test purposes. 2 Proving months for schedule overruns.3. identified how other variables af- out the manufacturing process and

fected program success. ramping up the production rate are It is important to recognize thatthe only other authorized purposes of our evaluation scheme is a measure

EMD Cost and Schedule Data LRIP systems. Since this is accom- of program management success at aFigure 1 indicates the results of plished regardless of the end use of point in time rather than eventual

planned and actual EMD cost and the LRIP systems, aquestioncouldbe weapon system success. There wasschedule data for the 24 programs. asked: no attempt to evaluate the effective-This is the ratio of the actual EMD ness of the systems in their opera-results to the planned figures for cost Is the current 28-percent LRIP tional roles. Also, we did not evaluateand schedule. A program that came in test usage/72 percent other than the performance (Effectiveness andessentially on-cost and on-schedule, test usage the proper mix of LRIP Suitability) of these programs in EMD,would have a ratio of 1:1 for cost and systems? although that would be an excellent1:1 for schedule. Of the 24 programs, additional study and relatively easy18 came in under a 100-percent cost In this regard, a recent Naval Post- to do.and schedule overrun (ratios 2:1, and graduate School thesis concludes that2:1). For the entire 24 programs, the the majority of the problems that oc- The six other variables selectedaverage cost overrun in the EMD curred during IOTE/OPEVAL are di- were-phase of the program was 45 percent, rectly related to test resource issues.- 1. the degree of risk identified atand the average schedule overrun was It also recommends "sufficient test Milestone II;63 percent. The data showed more articles shouldbe producedandavail- 2. use of competition during theprograms were better able to controltheir cost overruns than their sched- FIGURE 2. LRIP Test Quantity and Scheduleule overruns. For the remainder of Slippagethis article, and for the final research 11.1.01.report, w e discuss the data obtained If >3%... no more than 50%

by reviewing all 24 programs, unless Probability 0.75 slip in scheduleof Less than

otherwise noted. 50%.5Schedule 0.50 .40

LRIP Test Quantity Slip .38 .4weN

at

Figure 2 shows the results of the 0.25data gathered to answ er the question No Dn0 I 0

0-1% 1-2% 2-3% 3-4% 4_5% 7-8%

articles was related to program suc- LIP Test Articles

cess. (Here program success was de- Total Planned Production Quantity = Percentage

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Demonstration/Validation (DEM/ The data also showed that pro- tems acquisition. "Control charts areVAL) phase; grams using one or no associate con- simple devices used to establish

3. use of competition during the EMD tractor (besides the Prime) had a suc- bounds on measured characteristics,phase; cess rating of 3.4 compared to a rating so thatwhen the bounds are exceeded,4. type of contract; of 2.4 for the programs that used more production should be suspended and5. number of associate contractors; than one associate contractor. For the machine in question should be

and probably the same organizational adjusted or repaired."' Hopefully,6. Joint- or single-Service program. complexity reasons, single-Service these data define our current baseline

programs had an average success rat- on our continuing quality journey.From the data available in the pro- ing of 3.0 compared to Joint programs'

gram "Blue Books" or the SAR, we success rating of 1.8. Referencesassigned a success rating of one tofive in accordance with the plan out- Conclusions 1. Galley, C. K., Reig, R. W. and We-lined above. We next compared this To conclude by returning to our ber, V. (1994); Ongoing, unpublishedrating with the program's other vari- initial paragraph-how are we doing? DOT&E-sponsored research of DoDables. For example, did the program Well, it depends (a classical phrase acquisition, Defense Systems Manage-at Milestone II indicate it was low- here at the College). It depends on ment College, Fort Belvoir, Va.risk or medium-risk? what DoD weapon systems acquisi- 2. Reig, R. (1994 July-August), "Insuf-

tion is compared to. Our overall aver- ficiently Robust DT&E Means TroubleProgram Success Rating ages were discussed herein, but Fig- Ahead for OT&E," Program Manager,Results ure 3 shows major weapon systems Vol 23, No. 4, pp. 12-15.

Finally, we averaged the program as comparedto otherindustries.' Here 3. Mills, J., "An Analysis of Weaponsuccess ratings of the programs that the comparison is more favorable. System Readiness forOperationalTest-were low-risk and the programs that And if we return to Figure 1, and ing," Masters Thesis, Naval Postgradu-were medium-risk, and found in this consider only the 18 of the 24 pro- ate School, Monterey, Calif., 1994.instance, programs thatwere medium- grams reasonably clustered together, 4. "Final Report to the President" byrisk had a higher average program the average cost overrun is 20 per- the President's Blue Ribbon Commis-success ratingthan programs thatwere cent, and schedule overrun is 32 per- sion on Defense Management, A Questlow-risk. Initially we assumed a low- cent. These are credible numbers and for Excellence, Appendix, p. 61, Junerisk program would haveabetter prob- much better than the 45 percent and 1986.ability of success than a higher-risk 63 percent overall overruns. 5. Bailey, M.,Bowden, l.andCallahan,program. The data did not support A.I., "Managing Ship Performance ofthis assumption. Programs that evalu- In Total Quality Management Naval Gunfire Support Using Statisti-ated their risk as Low at Milestone II terms, our performance with 18 of the cal Process Control," Military Opera-had an average program success rat- 24 programs reviewed can be thought tions Research Journal, Vol. 1, No. 1,ing of 2.4 as compared to programs of as our current statistical process Summer 1994, Alexandria, Va.with a risk evaluation of Medium, control bounds for DoD weapon sys-which had an average success ratingof 3.3. FIGURE 3. Cost Growth in Major Projects (RAND)

200- N =19

Ten programs had no summary N=29risk estimate that we could find. Only N

one program indicated Software Lines 150-of Code, an accepted metric of soft-ware risk. Programs that did not use Program N = 12

competition in DEM/VAL had a higher CostGrowth n

program success rating than did those (percent) 100-that did 3.3 vs. 2.0. Programs that didnot use competition in EMD also had N = 59a higher success rating -- 3.1 versus 50- N -13 N = 49

2.2. We evaluated four EN/D contract N 7 N=49

types, and the data resulted in thefollowing program success ratings: 0 ... .Cost Plus Incentive Fee, Fixed Price 1960s 1970s Highway Water Public Very large All Nonploneer

Major weapon projects projects buildings construction PioneerIncentive and Firm Fixed Price - all systems (1972) (1972) (1972) (1977) process plants(1 985)3.3; Cost Plus Award Fee - 1.0. Source: Improving the Military Acquisition Process- Lessons from Rand Research," (R-3373-AF/RC) The Rand Corporation,1986

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REVISIY'-2TED

A Competency Perspective ofArmy Program Managers

Capt. Bryan J. Mc Veigh, USA

ihat are the characteristics that gram manager, and the nine leastdistinguish the most success- important characteristics.ful program managers from theirpeers? One of the most exten- Initially, surveys were administered

sive studies of successful program to Army PEOs and their deputies.managers - The Right Stuff: Results , X These individuals were asked to iden-of DSMC Program Manager Cornpe- tify those program managers who besttency Study - identified 16 compe- characterized the competencies theytencies in its Program Manager Job had previously identified as most im-Competency Model.' portant for an "ideal" program man-

ager. Of the 34 Army program manag-This 1989 DSMC study defined a ers, they selected 18 as "successful"

competency as an attribute of a pro- and 16 as "average."4 Of the 25 pro-gram manager that underlies effective gram managers who responded to theperformance. Specifically, the DSMC 1.{ survey, 11 were successful, and 14Program Manager fob Competency were average. Figure 1 reflects theModel included 10 core competen- results of the data obtained from bothcies for program managers, and six Coaching senior successful and average programcompetencies that distinguished the managers.most successful program managers.2 officers must coach

Program ManagerThis article presents the results of junior officers to Competencies

research recently completed at the The Naval Postgraduate SchoolNaval Postgraduate School, which reach their potential. (NPS) study validated 14 of the 16evaluated the competencies identi- competencies identified in the origi-fled in the original DSMC study from nal DSMC study. Figure 2 provides athe perspective of the Army's current The results of this study are based comparison of the original and re-major acquisition program managers., on survey data obtained from pro- vised Job Competency Models.

gram executive officers (PEO), pro-gram managers and acquisition stu- The results of the NPS study indi-

Capt. Me Veigh, USA, is currently dents. Administered to over 220 cate that all program managers sharethe Fielding Officer and Program Ex- acquisition personnel, the surveyelic- 11 competencies. Additionally, fiveecutive Office; Tactical Wheeled Ve- itedaresponserateof8opercent. The competencies appear to distinguishhicles, Logistics Management Support survey asked each respondent to re- the most successful program manag-Office, Tank Automotive Command, view the 27 competencies from the ers. In order to gain further insightWarren, Michigan. He is agraduate of original DSMC survey. Theywere then into why and how these competen-the Naval Postgraduate School, asked to select the nine most impor- cies were ranked, the seven success-Monterey, Calif. tant characteristics of the "ideal" pro- ful program managers, who were se-

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FIGURE 1. Program Manager Competency Interval Scale

Successful AverageProgram Managers Program Managers

Innovativeness

Political awareness Managerial orientation

Coaches others Political awareness NV Sense of ownership

Self control - treat Relationship development/Self control

Results orientedInnovativenesspeople with decency, Most Important CharacteristicsSense of ownership Long term perspective F cus on excellence

Long term perspective ]Managerial orientation Results oriented/}Creativity Systematic thinking Creativity

and they will bend over Action oriented Relationship development Attention to detailPositive expectations Professionalism Optimizing

Focus on excellence / Proactive information gathering Action orientedProfessionalism NCbackwards for you. Strategic influenceit Coaches others

Critical inquiry r Systematic thinking Collahorative influenceInterpersonal sensitivity ASelf controlProactive information gathering Positive expectation Assertiveness

lected by more than one PEG, were Interpersonal assessment

interviewed. The 16 competencies Critical inquiry >Strategic influence-Least Important Characteristicsfrom the revised lob Competency Attention to detailN LaImr nterpersona assessmentOptimizing v ntresntaesmt

Model, their definitions, and insights O1Assertivenessgained from these interviews are pro- lCollaborative influence

vided below. (Note: An asterisk (*) Efficiency oriented Interpersonal sensitivity C

indicates the competencies that dis- Coetitiveness eiieneCo peitvees Efficiency oriented

tinguished the most successful pro- Directive influenceinfluencegram managers from their peers.)

Competency No. 2 This guy is going to be a pro-Competency No. 1 Coaches Others (*): Providing oth- gram manager one day; it's my

Political Awareness: Knows who ers with performance feedback and job to coach him and let himinfluential playersare, whattheywant, suggestions to improve their capabili- develop to his potential.and how best to work with them. Poli- ties. As the Acquisition Corps evolvestics affects every aspect of an Army into a profession, the ability of junior Competency No. 3program. Whether this is right or officers to learn from their superiors Developing Relationships (*):wrong, program managers must oper- will help them avoid many of the Spends time and energygetting to knowate in this environment. As one pro- mistakes of the past. If program man- program sponsors, users and contrac-gram manager remarked: agers do not train the people who will tors. A program manager has daily

one day fill their positions, they are interface with avariety of people fromIf you are not politically astute performing a disservice to the Acqui- outside his organization. Each of theseabout the Pentagon, Congress sition Corps, the taxpayer and the people will have their own agenda,or other Government agencies, individual. As one program manager priorities and resource constraints.you will never understand their stated about one of his junior officers: To be successful, program managersagenda, your program will fail, must be able "...to pick up a phone,and you will never know why it explain what [they] need done, andfailed. because of the relationship [they have]

established with these folks, expect aProgram managers learn very response."

quickly how politically sensitive theirprograms are. Of importance for pro- Building relationships does notgram managers to understand is the happen overnight. Program Manag-fact that trade-offs have been made at ers must take the time to visit andthe Army, DoD and Congressional cultivate old and new relationshipslevels just to keep their programs vi- with key personnel affecting their pro-able. As one program manager stated: grams. These key personnel include

people from the Pentagon, the testYou may have to concede many community, contractors and the user.times on small issues just to There are no cookbook Many program managers stated thatkeep your program alive; lose s they obtained positive results for theirthe battle to win the war. olutions, only plans. programs merely by working the

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FIGURE 2. Comparison of DSMC and NPSCompetenciesOriginal Competency Model Revised Competency ModelSense of ownership (*) Political awarenessPolitical awareness (*) Coaches others (*)(@)Relationship development (*) Relationship development (*)Strategic influence (*) Self-control (*)(@)Interpersonal assessment (*) Results-oriented (*)Assertiveness (#) InnovativenessManagerial orientation Sense of ownershipResults-oriented Long-term perspectiveCritical inquiry Managerial orientationLong-term perspective Action-oriented

The PM is the Focus on excellence Focus on excellenceInnovativeness Strategic influence

program's number one Optimizing (#) Critical inquirySystematic thinking Systematic thinking

advocate and Action-oriented (*) Proactive information gatheringProactive information gathering Interpersonal assessment (*)

cheerleader. Notes:(*) Indicates a competency that distinguishes a successful PM.(@) Indicates a competency that was added to the PM Job Competency Model.

relationships they previously estab- (#) Indicates a competency that was deleted from the PM Job Competency Model.

lished with various agencies. As oneprogram manager stated: must remember, however, that the articulates problems or issues from a

solution that worked yesterday may broader organizational or missionThis may sound like the "good- not work tomorrow. Thus, the pri- perspective. Sense of Ownership isold-boy" network, which it is, mary responsibility of the program important from the perspective thatbut the Army is personnel- and manager is to find out what will work, one of the primary roles of programstaff-intensive, so interpersonal and do it. managers is to be their program'srelationships, the ability to work number one advocate and cheer-with others, is a must. Competency No. 6 leader. One program manager put it

Results Oriented (*): Evaluates per- this way:Competency No. 4 formance in terms of accomplishing

Self Control (*): Remaining calm specific goals or meeting specific stan- If program managers are not outand unemotional in stressful situations. dords. One of the most important parts there "leading the charge" forSeveral of the program managers who of a program manager's job is making their systems, they are probablywere interviewed said that they knew each program work and getting it performing a disservice to theprogram managers who were "scream- fielded. As one program manager taxpayer and the soldier.ers" and who got angry very quickly. stated:While this may work in the shortterm, program managers who resort Everything you do [as a pro-to such actions will never be able to gram manager] has got to be -count on those people to "bend over focused on results, results, re-backwards for them in the long term." suits.Most program managers agreed that _losing your temper is not wrong as To get a program fielded, programlong as you understand beforehand managers must "put marks on the 0 ©the consequences of that action, wall"; otherwise, events will dictate S

the course of the program. By focus-Competency No. 5 ingon results, program managers have

Innovativeness: Champions and a way of setting priorities and measur-pushes new ways of meeting program ingthe resultsoftheirprogramsagainst A PM should neverequirements. The acquisition busi- a specific standard.ness has no "cookbook" answers; become too attachedtherefore, the Army hires program Competency No. 7managers to "manage unique situa- Sense Of Ownership/Mission: Sees to his program.tions effectively." Program managers self as responsible for the program;

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A negative aspect of this compe- petency focused on dealing vith cri-tencyis that Sense ofOwnership might ses that pertained to the program'simply, to some people, that the pro- budget. One program manager put itgram belongs exclusively to the pro- this way:gram managers. Program managersshould never become personally at- When the Pentagon calls andtached to their programs. They must says that you have two hours forkeep the attitude that "... if the Army an answer, they are not throw-says that they don't want the program, ing "wolf bait." You have gotI personally don't want it." This allows two hours to get them an answerthem to establish the credibility of their before the window of opportu-programs based on each program's ca- nity closes. If you don't respond,pabilities, without others viewing their you have just lost the battle -actions as personal or vindictive. So battles which normally equateprogram managers must be committed to money.to sellingtheArmy's programs, nottheir A PM's job is topersonal programs. Competency No. 1 1

"steer the ship." Focus On Excellence: Strives for theCompetency No. 8 highest standards regardless ofcircum-

Long-Term Perspective: Antici- power their subordinates to complete stance. Many of the program manag-pates and plans for future issues and the mission. ers felt that it was easy for people toproblems. Most program managers say that they focus on excellence, butagreed that the most commonly used One of the key aspects of Manage- it was much harder to actually do it.tool for focusing on a Long-Term Per- rial Orientation is that it forces pro- As one program manager stated:spective was the DoD six-year budget gram managers to take the time toprocess. One program manager stated: understand the strengths and weak- I've never been in a situation in

nesses of their personnel. By under- this business where there wasIf I had a [financial] problem standing their subordinates' capabili- an excellent solution. Every-today, I couldn't fix it in 1994 if ties, program managers are able to thing is a trade-off.my life depended on it, without place those personnel into positionssevere turbulence, because I that maximize their strengths and So the program manager strives todon't have the money to do it. minimize their weaknesses. By em- provide the user and the taxpayerThe 1995 budget is essentially powering their subordinates to ac- with the best product he can withinlocked.. it would take a miracle complish specific missions, program the constraints of cost, schedule andto change it now. So 1996 is managers have the time to focus their performance.your first year to impact. With- efforts on resolving the major prob-out a long-term perspective, I lems before they become crises. Competency No. 12can't do that. Strategic Influence: Builds coalitions

Competency No. 10 and orchestrates situations to overcomeAccording to current program man- Action-Oriented: Reacts to problems obstacles and obtain support. Strate-

agers, what distinguishes program energetically and with a sense of ur- gic Influence plays an important rolemanagers from their peers is their gency. A program's performance is in the external environment of a pro-ability to identify a crisis that will not directly tied to how action-oriented gram. It affects how a program isoccur until two years from now. Suc- its program manager is. To quote one funded, staffed and fielded. Programcessful program managers must be program manager: managers can't get their programsable to shape events so that the crisis fielded by themselves. They must beis manageable when it does occur. You don't need me if I'm not able to build coalitions and partner-

action-oriented, because I'm ships, and be able to effectively useCompetency No. 9 paid to respond to a crisis, them to weigh in for their program

Managerial Orientation: Gets work when the time comes. One programdone through the efforts of others. Pro- The very nature of the role of pro- manager said that the key to buildinggram managers don't have time to do gram managers means that they must an effective coalition was to:everything themselves. A program deal with crisis on a day-to-day basis.manager's job is to "steer the ship," ...come across as a sincere andkeep their action officers "heading in Most of the examples cited by pro- honest person, yet willing tothe right direction," and then em- gram managers concerning this cam- stand up for what you think is

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right; then they will probably be be better able to manage their pro-willing to compromise if you grams. They will understand when todon't have a dogmatic approach "get out of their way" and when theyto things. are in danger of "focusing on a few

trees in the forest." In short, interper-Competency No. 13 sonal assessment is the ability to "un-

Critical Inquiry: Explores critical derstand and work with people."issues that are not being explicitly ad-dressed by others. Program managers Summaryare responsible for understanding the The primary role of an Army Ac-political environment within which quisition Category I (ACAT I) pro-their programs exist. Their skill in gram manager is to direct the devel-understanding other people's agen- opment and production of a weapondas, building coalitions, and getting system within the constraints of cost,their programs fielded depends on schedule and performance. To suc-their ability to ask the hard questions cessfully accomplish this, program"up front and early." This Critical managers must exhibit certain com-Inquiry, asking the "what if" ques- petencies. Their ability to integratetions, allows program managers to Always look for that these competencies into the manage-discover the rationale behind certain ment of their programs plays an im-answers. As is often the case, program window of opportunity portant part in the success of eachmanagers can gain more insight from program. The revised Job Competencyunderstandingtherationalethanfrom that wins the battle. Modelidentifies 16competenciesthatthe answer itself. current Army ACAT I program man-

reacting to a problem, it means agers identified as being important toCompetency No. 14 it's already here. Already here successful program management.

Systematic Thinking:Organizesand means I better have the finan- Whilethese 16competenciescan'tbeanalyzes problems methodically. The cial abilityto do it, which means seen as a "cookbook" solution foracquisition of a major weapon system it's too late. If I'm reacting to a future program managers, they dois a complex process. The program problem, it means that it's prob- provide a blueprint of the leadershipmanager must not only coordinate ably already over my head. and managerial skills needed to be-the program through its current phase, come an effective program manager.but also plan for the program's growth In short, an effective program man-throughout its life cycle. The program ager must find out about problems ENDNOTESmanager must be able to methodi- before they happen.cally lay out a plan that will allow the 1. Gadeken, 0 C., "The Right Stuff:program to get through a particular Competency No. 16 Results of DSMC Program Managerevent as well as future events. InterpersonalAssessment (*): Iden- Competency Study," Program Man-

tifies specific interest, motivations, ager, September - October 1989.Competency No. 15 strengths and weaknesses of others. 2. Cullen, B. J., and Gadeken, 0. C.,

Proactive Information Gathering: Program managers must be cognizant A CompetencyModel ofProgram Man-Systematically collects and reviews in- of theirown strengths andweaknesses agers in the DoD Acquisition Process,formation. Very few people are willing as well as those of their subordinates. Defense Systems Management Col-to come up and tell you that they have One program manager stated that the lege, Ft. Belvoir, Virginia, 1990.a problem. When something goes reason he hired a specific deputy was 3. Mc Veigh, Bryan J.,Army Programwrong, people will tend to "sit on the to balance his own weaknesses: Managers: A Competency Perspective,news, trying to make it better, or hop- Naval Postgraduate School,ing the bad news will go away." One I am weak in program manage- Monterey, California 93942-5002,of the program managers put it this ment, budgeting, cost estimat- September 1994.way: ing and contract negotiating. He 4. It is important to understand that

is an expert in those areas. This nonselection as a successful programIf a program manager is not balances my own style of man- manager did not mean that programproactive, he cannot get the job agement by walking around. managers were poor performers. Fordone. A program manager that the purposes of this study, a degree ofis not out finding the problems By understanding subordinates' full competency as a program man-is in the reactive mode. If I am capabilities, program managers will ager was assumed

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1994 Program Manager MagazineA Quick Reference for Last Year's Articles

January-February July-August" Software Acquisition Management-James H. * The Mobile Integrated Tactical Terminal (MITT)-

Dobbins, p. 2. Major Lillian A. Pfluke, p. 2." Roadmap for MILSPEC Reform-Debra van Opstal, * Mil-Specs and Mil-Stds No More?-Henry I. jehan,

p. 10. Jr., p. 8." Department of the Navy Strategic Systems Programs * Ethics in International Defense Acquisition

Office-Ibrahim A. Ashie, p. 32. Programs-Richard Kwatnoski, p. 28.* DSMC Hosts Acquisition Research Forum-Joan L. e Ten Sure-Fire Ways to Create Pentagon Problems-

Sable, p. 38. Lt. Col. Bud Vazquez, USAF and Lt. Col. Greg" Group Decision Support Systems-Arnold N. Hafner, Lockhart, USAF, p. 33.

p. 14. * Insufficiently Robust DT&E Means Troubles Ahead" Lessons Learned/Best Practices-Lt. Col. Lawrence E. for OT&E-Raymond W. Reig, p. 12.

Sweeney, USAF, R. Ross Hosse and Kent White, p. ° Managing a Major Technical Program-Dr. Raymond20. B. Gavert, p. 16.

" Two Propellers Short of a Plane-Capt. Hadd Jones, e Aggressive and Enthusiastic Software Engineering-USAF, p. 24. Lt. Col. Larry G. Baker, USA, p. 24.

" Tilting at the Windmill of Defense Acquisition @ General Yates Tells PMC 94-1 We Must Not LoseReform-Lyn Dellinger, p. 40. Our Combat Edge-Esther M. Farria, p. 36.

March-April * Traveling Contact Team Assists Bulgaria, p. 39.o Rapid Research and Development-Major James H. September-October

Lynch, USAF, p. 2. * Liberators, Mustangs and "Enola Gay"-Cadet J.o TEMC "Kick Off"-Lt. Col. Lawrence M. Damman, Jeremy Marsh, USAF, p. 2.

USAF, p. 11. , "Fifi" Flies, p. 16.e Experts Share Process Improvements-Mary-jo Hall, e The joint Advanced Strike Technology (JAST)

p. 26. Program-David S. Hersh, p. 33.* How Affordable a Strong Defense-Michael N. o Risk in the Acquisition Process-Lt Col Norman E.

Beltramo, p. 28. Johnson, USAF, p. 39.• DoD to Move Now; Will Not Wait on Congress to - Shelving Technologies-Thomas C. Hoff, p. 20.

Act on Reform-Program Manager Interview, p. 12. o Better Management With Fewer People-Vicky R.e Firefighting as a Management Tool-Rhico Allen, p. Armbruster, p. 23.

18. e Must Bottlenecks in the Software Process Bee The Constant Quest for Leadership Improvement- Feared?-Lt. Col. Joe G. Baker, USAF, p. 30.

Colonel James M. McClaugherty, USAF, p. 20. a Physics of Failure-Michael W. Deckert, p. 42.o Dual Use-Paul J. McIlvaine, p. 32. 9 Do We Need the Statement of Work-Dr. Jerome G.e Executive Courses Reflect Impact of Acquisition Lake, p. 47.

Changes-Robert L. Tate, p. 40. November-DecemberMay-June e ITI2V: The Formula for Marine Corps Acquisition

o Contract for Change-Michael L. Tompkins, p. 2. Success-Program Manager Interview, p. 2.o Integrative Experiential Learning-William R. o Highlights of the Federal Acquisition Streamlining

Fournier, p. 8. Act of 1994-oseph A. Drelicharz, p. 12.o DEPSECDEF Authorizes Using International Quality * Dr. Kaminski Delivers Keynote Address-Andrea

Standards-John P. McGovern, p. 21. Garcia, p. 17.* Why DoD Should Move Toward Commercial * Evolution of Configuration Management-William J.

Practices-Dr. Walter B. LaBerge, p. 24. Semiatin and Thomas C. Hoff, p. 26.o The Army Reuse Center and Program Manager - The Green Aspect of Acquisition Reform-George P.

Support-Marrea H. Riggs, p. 10. Noble III, p. 29.* Keeping Pace with Change-William W. Bahnmaier, * Sensor Fuzed Weapon Tailor Made for Today's Air

p. 15. Force-Maj. Michael A. Urban, USAF, p. 34.e International Defense Educational Arrangement, p. * Baselining and Benchmarking-Mark E. Gindele, p.

19. 42.* The Cultural Implication of Change-Henry C. e Managing Downsizing in the Military-Susan J.

Alberts, p. 30. Harvey, p. 48.* Inspectors General Auditor Training Institute-Paul o Creating Successful Entrepreneurship One Program

F. Caron, p. 36. at a Tim-e-Gretchel L. Hignite, p. 54.

Program Manager 35 January-February 1995

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You Are Invited to Participate in theDefense Systems Management College (DS C)

QUALIffFRU

WHAT IS THE QUALITY FORUM? WHEN?The Quality Forum is a series of electives offered as Each Quality Forum is 2-1/2 - 3 hours. The planned

part of the Program Management Course. The College dates are March 7 and 8 and April 24, 26, and 27. Thedesigned these electives to provide an opportunity to College will conduct all Quality Forums in DSMC's Howelldiscuss how leaders can implement quality theory to Auditorium.assist in transforming their organizations. H-THow DO I ATTEND? -

WHO WILL PARTICIPATE? For the announcement and sign-up sheet, call SharonThe series will include guest speakers such as- Boyd or Lisa Hicks in the Electives Office:

Kay Carlson Deming Study Group Commercial: (703) 805-2549Telefax: (703) 805-3201

Gerald Suarez, Ph.D. The White House Quality Office Internet: [email protected] [email protected]

John Vetter, Ph.D. Naval Air Systems CommandAsk about Elective 306, Quality

Michelle Hunt Federal Quality Institute Forum, and we'll send you the infor-mation.

Program Manager 36 January-February 1995

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FIELD TRIP PUTS DSMC X.O.AT CONTROLS OF AV-8B HARRIER

t's a long way from Tempe,Ariz. This thought may well

have been on the mind of Tempenative, Maj. Linda Puhek, Ex-ecutive Officer to the Comman-dant, DSMC, as she finds herselfin the cockpit of an AV-8B Har-rierJetduringa DSMC-sponsoredindustry student field trip to theCherry Point Marine Corps AirStation, N.C. Explainingthe con-trols are Steve Herold, Shop Su-pervisor (Left) and DSMC Com-mandant, Brig. Gen. Claude M.Bolton, Jr. (Right). The 1992 De-fense Authorization Bill, signedon 5 December 1992, repealedthe 1948 laws banning women

. from flying on combat missionsof the Air Force and Navy.

U.S. Air Force photo