Ever Elusive RIGHT Part - Pennant International Group PLC · System (CGCS) & the NATO Codification System (NCS) CGCS is the DND-managed system for our national codification bureau

Delivering the

Ever Elusive RIGHT Part

Brief to the 2012 NAOUG

Ottawa, Ontario, Canada

May 2012

Pat Read & Nick Oklobdzijia, Pennant Canada

Objectives

To examine Materiel Identification (MI) as a key enabler to selecting

RIGHT parts across Materiel Acquisition and Support (MA&S)

Processes for defense departments (based on Canada’s DND)

Key MI Concepts

MA&S Value Chain

Some Existing Challenges

Present for discussion some evolving concepts for possible future MI

across DND

For an ERP-enabled, increasingly ISSCF(PBL) support environment

Based on Pennants experience working with DND on MI since 2009

Not sanctioned or endorsed

@ 1-May-12 2 Pennant Canada Ltd

FIRST

SOME MI CONCEPTS

@ 1-May-12 Pennant Canada Ltd 3

Materiel ITEM & Materiel CONCEPT

Some MA&S processes (and related identifiers)

deal in a Materiel ITEM

A specific physical item is removed, installed, repaired,

issued, purchased, etc

Some MA&S processes deal in a Materiel

CONCEPT

A concept or requirement for similar items is specified,

solicited, or requested as replacements


Materiel CONCEPTS

Can be two types

Related to a particular end-use (System) requirement or

specification

Related to a common-to-many uses (Product/Part) requirement or

specification

Will have associated Interchangeability lists of suitable

Materiel ITEMS

Which may VARY depending if the list applies to an end-use or

common requirement/specification


Source Identifying

Materiel ITEMS

May be identified to DND by a range of

providing source identifiers, such as

Original item manufacturer PN; platform/system

integrator PN; 3rd party provider PN, etc

As well as company/source organization

identifiers (often NCAGE)

May be further uniquely identified by

Batch/lot number & Serial number @ 1-May-12 Pennant Canada Ltd 6

About NSNs ACodP1 - defined as a Materiel CONCEPT

Identifier (MCI) for a NATO Item of Supply (IOS)

Can contain a NATO common requirement or

specification and a list of NATO-agreed

interchangeable Materiel ITEM Identifiers (MII) –

usually source PNs – deemed suitable by a

designated NATO authority

Has been used as an MII in some NATO supply

systems, including CFSS @ 1-May-12 Pennant Canada Ltd 7

The Mix Varies…

DND Navy & Army Primary Systems

About 50% of items have NSNs

DND Leo2 about 20,000 of 25,000 items have NSNs by Germany

Only about 5,000 will be IOS based on Canadian Support concept

Almost all Repairable assemblies and End Items have

NSNs

Few Commercial Vehicle Items and many Unforecast

Operational Requirement (UOR) support items have NSNs

Most locally bought & supported items do not have NSNs


The Canadian Government Cataloguing

System (CGCS) &

the NATO Codification System (NCS)

CGCS is the DND-managed system for our national codification bureau

(NCB, DSCO) within the NCS

NCS is a collation of 34 member (74 user) nation NCB NATO numbers

Generally, 1st codifying or country of manufacture = resp TA for NSN

CGCS is about 1.2 Million NSNs used by Canada

2/3 foreign TA controlled, by 6 main nations

6-7 Million industry PNs from about 100,000 vendors

Does not include most local and commercial/manufacturer numbers not

assigned NSNs

Less 1-200,000 with PSCNs


AN MA&S VALUE CHAIN


11

2

Activity

Data &

Problem

Reports

(using

Materiel

ID)

Technical

Data

(including

Materiel

ID)

DESIGN CHAIN (System Life-Cycle)“Define the RIGHT Item for the User”

CUSTOMER CHAIN

SUPPLY CHAIN “Get the Right Item to the User”

“MA&S” Value Chain: Simplified

Supportability

System Engineering

Configuration ManagementDesign

NATODATA

INDUSTRYDATA

Procure Make Move Store MaintainProcurement

Strategy

Adapted from the Supply Chain

Council DCOR SCOR & CCOR

and DND KNet Models

A Materiel

ID

Perspective

A Simplified View As….

There are 1000s of DND Equipment System Design

Chains, often with shared interests in common items

The DND Supply Chain links to 100,000s of Industries plus

Allies

Dynamic data on many Millions of DND Materiel Items of

Interest

Does not show control issues


So Which Right is Right??

NATOs Common Item Need

Industries Common Item or System Need

DND Supply Chain by Common Service Need

DND Technical Authorities by System Need


DND Materiel of Interest

Must cover the full range of MCIs and MIIs that are used

within its processes and that are synchronized with Industry

and NATO

Three main levels, based on the support solution for the

system

The Items of Supply (IOS) – nationally and locally – that will flow

through the DND Supply system, particularly those reprovisioned

and exchanged with NATO allies

DND Maintenance-Only Items (MOIs) – that may be repaired or

reported on locally, but do not usually flow through supply

Non-DND Support Items (Others) – other items within the structure

that are not included above.


15

Design Chain

Materiel Concepts & Items

MOI

?

Apply

Support

Concept

Design & Build

SUPPORT

IOS

?

Design & Build

END ITEM

66K

MCIs =

66K

MIIs

?

Others

on AC?

Others

off AC?

66K MCIs + new ones for

Support Items and

Packaged Parts

Only 3.5-14K IOS

100k+ MIIs

SOME EXISTING

CHALLENGES


Key Current System Challenges

Control of MCI lists often rests outside DND

2/3 of NSNs are foreign TA controlled

The ERP solution is configured to work with NSNs for both MCI and MII

Non-NSN materiel converted or treated as text; substitutions not done well

Loss of PN reporting required for some processes

Different MCI lists used by different processes

Maintainer uses tech pub RIGHT list vs Proc/Supply using NSN RIGHT list

Dynamic datasets in ISSCF that are PN-based


Procurement

Inventory

NSN

Maintenance

MPN

Work

Order

NSN

Change from

MPN to NSN

Parts Issue

NSN

Record NSN for

Repaired Eqpt

Available

Eqpt

Maint Needs

Parts Request

MPN

Replenishment

NSN

RFP by

NSN

Complex

Assets

Contract

by MPN

Equipment Parts

Book – by MPN

Receive

MPN Complies with GOC’s NATO

interoperability commitments.

Acceptable

Alternatives

MPN

“As Is” Situation

The NSN parts

list and list of

acceptable

alternatives will

not always be in

agreement.

Not fully optimized to meet

customer requirements.

Lack of PN Reporting

Seriously degrades Supportability Analysis

of causes and resulting actions

Faulty part stock purges

Affects ability to do Airworthiness traceability

Delaying AirForce adoption of ERP

Hides most non-NSN activity as text info

Text buys vs PN orders


TOWARDS A BETTER?

FUTURE


Control

Final control of RIGHT needs to be vested in

DND TAs

Can be “EASY BUTTON” acceptance of NATO

or industry MCIs or custom ones where needed

Both initially and ongoing

ONE RIGHT MCI used across the system


Process-Based Materiel Identifiers

The MI used and reported/recorded by process needs to

reflect the MI used in that process and in a linked causal

chain

Some processes are MCI based

request part, solicit buys, search inventory

Some Are MII based

Remove/install part, pick/issue part, contract/receipt part

Cause Chains Map Different Identifiers

Removed part A, used MCI list 24, got suitable part B


Use of NSNs

NSNs remain a fundamental tool for MI with and within NATO and DND

NSNs may be the MCI or may be an external reference list against

which the MCI subset is compared for those MCIs where NSNs are

required.

Primarily centrally managed, exchanged with allies, reprovisioned regularly,

“significant”

PNs would continue to carry NSNs as attribute data where avail

To retain and enhance interoperability

Efforts to align NSN with MCIs would be ongoing, but MCIs internally

allow DND to run effectively with whatever data they have.


External MCIsInventory


NATO

DATA INDUSTRY

DATA External Reference List (NSN?)

2 1 3 4 5 6

MCI

Sys A

MCI

Sys B

MCI

Sys C

A C B B A C

1 1 2 2 2

3

3

4

4 3

4 5 5 6 6

Altn PNs

System TA

Decisions

Inventory

Locations

Supported

Systems ??

Procurement

Inventory

MPN

Maintenance

MPN

Work

Order

MPN

Enter into

Stock As MPN

Parts Issue

MPN

Record MPN for

Repaired Eqpt

Available

Eqpt

Maint Needs

Parts Request

MPN/MCI

Replenishment

MPN/MCI

RFP by

NSN

Complex

Assets

Contract

by MPN

Equipment Parts Book

MPN

Receive

MPN

“To Be” Situation

Acceptable

Alternatives

While transacting enterprise supply, warehousing and/or

replenishment functions using MPN’s, the GOC is still

able facilitate exchange with allied nations and comply

with NATO interoperability commitments because the

NSN is retained as a secondary identifier for inventory

stock.

Procurement

Inventory

MPN

Maintenance

MPN

Work

Order

MPN

Enter into

Stock As MPN

Parts Issue

MPN

Record MPN for

Repaired Eqpt

Available

Eqpt

Maint Needs

Parts Request

MPN/MCI

Replenishment

MPN/MCI

RFP by

NSN

Complex

Assets

Contract

by MPN

Equipment Parts Book

MPN

Receive

MPN

The MPN/MCI option supports three main supportability

objectives:

1. Maintenance needs are synchronized with stock holdings

and replenishment activities.

2. Facilitates assessment of MII/MCI performance against end

item.

3. Recall/purge of bad part (by MII) is easily located in current

stock holdings and can also be traced to end item through

work order material issues.

“To Be” Situation

Acceptable

Alternatives

NSN

Lists

Procurement

Inventory

Maintenance

Work

Order

Place into

Stock

Parts

Issue

Record Consumed Parts

Against Repaired Eqpt

Available

Eqpt

Maint Needs

Parts

Request

Replenishment

Action

RFP by

MCI

Complex

Assets

Contract

by MPN

Equipment Parts

Book – by MPN

Receive

MPN

Acceptable

Alternatives

MCI

Procurement

Technical Data

Management

Supply & Maintenance

Supportability

Comply with GOC’s NATO

interoperability commitments.

Supply Chain MI – Future?

DISCUSSION


Ever Elusive RIGHT Part - Pennant International Group PLC · System (CGCS) & the NATO Codification System (NCS) CGCS is the DND-managed system for our national codification bureau

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