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U. S. Coast GuardAircraft Repair

and Supply Center

Our Mission

We provide Air Stations with depot level maintenance, engineering, supply and

information services to support Coast Guard missions.

“We keep ‘em flying” by providing:

the Right Stuff

at the Right Place

at the Right Time

at the Right Cost

Every time.

Our Vision

HH-65

XOXO

HU-25

Safety

HH-60 C-130HC-144

COCO

Organization

ALD ISD IOD PRD OPSEISDISD EISD IOD PRD OPS

• Military: 159–55 Officers

–104 Enlisted

• Civilian: 552 –218 GS

–334 WG

• Contractor: 700+• HS Apprentice: 32

• Total: 1400+

Staffing

TOTAL OE: $250M

PARTS, PRODUCTION & PROJECTS: $193M

OPERATING BUDGET: $57 MComponent Repair, IT Systems, Industrial Infrastructure, Pub Maintenance, Logistics Support, etc.

Budget

Facilities

Total: 14 buildings 508,500 sq ft

2 Production Hangars

Facilities

Stripping Hangar

Paint Hangar

Facilities

Facilities

3 Acre Warehouse

Engine Shop

Facilities

Gear Box Shop

Facilities

Machine Shop

Facilities

Avionics Repair Facility

Depot Maintenance

23 - HH65/year 9 - HH60/year 4 - HU25/year3 – C130/yr @ EC

Depot Maintenance

Aircraft Modifications– HC130 DF-430, HSI Replacements, ASIP Inspections, Selex

Radar, Wing Rewire– HH65 C Re-Engining– HU25 Avionics Upgrade– HH60 T Conversion, AUF, Avionics, Rewire

Depot Maintenance

Component Repair

– 90 Jet Engines

– 400+ components (wheels, doors, actuators, servos, avionics, etc.)

EngineeringTechnical Center

Set Coast Guard aeronautical maintenance policy and direction

Define/refine/field ALL proposed aircraft changes

EngineeringTechnical Center

8000 publications & 450,000 technical drawings

2775 Pubs Owned By ARSC

Web-Based

Aviation Inventory Control point

$930M parts (ARSC warehouse and 26 air stations)

33,000 line items

5.5M parts

Supply Services

IT Services

Data Center

Fully Deployed

Contractor Sites

DHS Prototype Sites

Current Initiatives

Lean Manufacturing Unique Identification (UID) C130 Organic PDM USAF JDLM Logistics Transformation Initiatives

World Class Quality

ISO 9001:2000 Certification

ISO 14001:2004 Certification

Commandant’s Quality Awards

2 Silver and Gold

2006 White House CTC Env Award

2005/2006 CG Industrial Maintenance Innovation Awards

Performance Based Logistics

Prior to PBL with Rockwell Collins Equipment repaired via firm fixed price orders. All Non-RFI physically flowed thru ICP – ARSC. ICP would fund and issue an order and ship material to Rockwell repair

center. QDR/UR issued if quality was bad and unit was returned on no-cost

delivery order. Numerous repair orders and modifications increased the administrative

burden on the government and the contractor. Vendor essentially received more profit for more failures. “Throw back over the fence” repair quality. Inefficient shipping pathways. Repairs were only done as necessary. Test equipment was problematic, resulting in more questionable repair

actions...$$.

Current PBL Process

Description of Scope Mission Readiness Requirement Of 85% Contractor Management of Customer Assets, including test equipment. Guaranteed Reliability baseline with incentives (MTBUR not MTBF) Provides onsite training to field users

Platforms Supported All Rockwell Collins content on the HU-25 and HH-65 aircraft Supports 74 different LRU’s Supports 113 Aircraft at 25 CONUS locations

Availability to Support the Fleet 85% Availability Guaranteed 24 Hr OST (Order Ship Time) For Class 1 Requisitions 5 Day OST for Class 2 Requisitions Average Ship Times Reduced to less then 3 Days for all requisitions

Current PBL process,cont’d

One order placed against the contract @ the beginning of the year.

Failed boxes are shipped directly to and from the repair center at Rockwell Collins.

Rockwell must have access to CG inventory database.

QDR/UR are practically unnecessary and are “For Information Only”

Incentivized PerformanceSupply Metrics

Ability to fill CG requisition in a timely manner

Priority 02 within 24 hours

Priority 05 within 5 work days

Priority 12 within 15 work days

Ability to meet these requirements counts for two thirds of the total incentive $

Vendor issues a monthly report on their own performance, which is then verified by the Coast Guard.

Incentivized PerformanceQuality Metrics

Ability to make repairs that last on-wing.

MTBUR as measured against a established baseline MTBUR.

Counts as one third of total incentive.

Rockwell issues a quarterly report on their own performance.

Then and Now

Comparison

PastPastPastPast TodayTodayTodayToday

Failure ResponseFailure Response Operational AvailabilityOperational Availability

ReactiveReactive ProactiveProactive

InconsistentInconsistent Zero VariabilityZero Variability

Rigid, InflexibleRigid, Inflexible Agile, Reconfigurable, CustomizedAgile, Reconfigurable, Customized

Unresponsive, UnavailableUnresponsive, Unavailable Responsive, Customer-CenteredResponsive, Customer-Centered

PricePrice ValueValue

Advantages of PBL

The cost is contained (number of flight hours versus number of repairs).

The administrative costs of issuing numerous orders is eliminated.

More efficient shipping path from CG units to repair center.

Rockwell’s incentive for doing quick marginal repairs is eliminated and replaced with an incentive for doing improved repairs.

Rockwell manages assets in order to maximize availability.

Test equipment and training for covered assets is partnered with vendor.

PRODUCT LINE DRIVEN ORGANIZATION

Single belly button Ownership Teamwork Synergy Flexibility

CHALLENGES

Adequate, Qualified Staffing Adequate Budgeting Timely identification of requirements Adequate definition of requirements and roles

and responsibilities

QUESTIONS?