Rear Admiral Mark Purcell - Department of Defence - Provision of maritime capability/sustainment in support of border security

Enterprise Naval Shipbuilding Plan

Rear Admiral Mark Purcell RAN

Head Maritime Systems

CAPABILITY ACQUISITION AND SUSTAINMENT GROUP

Current Naval Acquisition Projects


- 3 AWDs: Australian Build - Adelaide SA, Williamstown VIC, and Newcastle NSW

SEA4000 Phase 3 Air Warfare Destroyer


JP2048 Phase 4A and 4B LHDs

- 2 LHD Amphibious Ships: Hybrid Build - in Williamstown VIC, and Ferrol, Spain

- First LHD commissioned HMAS Canberra on 28 November 2014, NUSHIP Adelaide anticipated

delivery Late 2015


JP2048 Phase 3 LHD Watercraft

• 12 LHD Landing Craft: Offshore Build - Cadiz, Spain

• First 4 LLCs have been Accepted with Initial Operational Release granted 10 October 2014.

• LLC 5-8 were delivered to Australia 5 February 2015, with DMO acceptance 19 February.

Operational Release was in July 2015.

• LLC 9-12 are expected late 2015.


• To replace the existing RAN afloat support capability:

• Limited Tender’ RFT for an overseas build of two AORs

based on existing, proven in-service or in-build designs.

Navantia -

Cantabria

DSME - Aegir 18A

HMAS SUCCESS HMAS SIRIUS

SEA 1654 Phase 3 Mar Op Support Capability


SEA3036 Phase 1 Pacific Patrol Boat


Enterprise Naval Shipbuilding Plan



RAND Recommendations

The Australian government faces a trade-off between paying a

price premium for indigenous production and benefiting from

some broader economic development from such production.

The 30- to 40-percent price premium for building in Australia

could drop to approximately half that level over time with a

steady production program that leads to a productive

workforce.

Supporting an Australian shipbuilding industry that is cost-

effective will require specific steps, including filling the gap

between the end of the air warfare destroyer program and the

start of Future Frigate construction and adopting a continuous

build strategy that starts a new surface combatant every 18

months to two years.



RAND Recommendations

The RAN should be an intelligent and informed partner in the acquisition

process, by involving the appropriate organizations early and often, clearly

assigning roles and responsibilities, and understanding the cost and

schedule implications of options.

It should strive for program stability.

It should commence construction only after designs have been largely

completed.

Critical near-term questions facing the SEA5000 Future Frigate program

should be addressed, including:

• determining the operational and performance requirements and the

technical requirement

• deciding on the best design option,

• deciding how to engage with industry and how the program office will

monitor the program, and

• deciding how the class will be supported throughout its life.


Recommendation 5 paragraph 6.35

The committee recommends that the 2015 White

Paper is prepared in such a way that all

procurement proposals are costed and scheduled

realistically, and informed by the need to have a

continuous build program for naval ships.

The committee understands that, following the

release of its 2015 Defence White Paper, the

government will also publish a Defence Investment

Plan and an enterprise-level Naval Shipbuilding

Plan.

The committee recommends that both documents

take note of the evidence provided in this report

about the importance of having a continuous build

program that will sustain a viable naval shipbuilding

and repair industry.


The Government’s plan for a strong and sustainable

naval shipbuilding industry

Today, the Government announces that it is:

• Bringing forward the Future Frigate programme (SEA 5000) to replace the

ANZAC class frigates. As part of this decision, we will confirm a continuous

onshore build programme to commence in 2020 …. The Future Frigates will be

built in South Australia based on a Competitive Evaluation Process, which will

begin in October 2015.

• Bringing forward construction of Offshore Patrol Vessels (SEA 1180) to

replace the Armidale class patrol boats by two years, with a continuous onshore

build commencing in 2018 following a Competitive Evaluation Process.

In the short term these two measures will sustain around 1,000 jobs that

would otherwise have been lost. Once both programmes ramp up they will

guarantee around 2,500 Australian shipbuilding jobs for decades.

Joint Media Release – 4 August 2015

Prime Minister and Minister for Defence


SEA 5000 Future Frigates


SEA 1180 Offshore Patrol Vessels (Armidale Replacements)


MSD Business Plan and Focus Areas

CAPABILITY ACQUISITION AND SUSTAINMENT GROUP 2015 – 2016 Business Plan

The Business Plan was developed in response to a pressing need to change the way we work

Inconsistent performance

We deliver against most project

schedule and product availability

targets, but need to improve

performance in the remaining areas.

Inconsistent safety compliance

Safety compliance varies between

business units and must be raised to a

more consistently high standard across

MSD.

A shrinking workforce

Our workforce has reduced by 5.5%

over the last year, and current

recruitment constraints mean it is

extremely difficult to replace staff that

leave.

Areas of cultural risk

Our people commend the care and

respect shown by their colleagues, but

believe they could be better supported

to deliver on their responsibilities.

Significant external pressure

The many priorities and change

programs we are tasked with supporting

is stretching our ability to contribute

where we are expected.

A pressing need for improvement

The current state is unsustainable and

will not deliver improved performance

unless we adopt a new way of doing

business.

MSD


Maritime Systems Division

2015 – 2016 Business Plan

This vision will be delivered through improvements in four areas. These are the Strategic Pillars

for the changes we will make across MSD

B. Essential Business:

Focus on the effectiveness

of configuration

management, maintenance

planning and execution

delivered by industry and

governed by MSD

C. Governance and

Oversight: Shift to a

governance focussed

business, in partnership with

industry, through

Communities of Practice

D. Workforce: Create and

manage the workforce to

support sustainable

operations

• Appoint MSD Community of

Practice leaders in these

areas

• Refresh professional

standards to align to ‘good

practice’

• Form projects to drive good

practice and improve key

enablers (e.g. data quality) at

the waterfront

• Reform our approach to

working with industry so that

MSD has a greater emphasis

on Governing and Planning

• Create MSD Communities of

Practice across all functional

areas, to drive the high

professional standards we

require in our new role

• Focus on improving

workplace health and safety

compliance

• Improve the flexible

allocation of resources

across MSD

• Cease doing activities which

do not align to our vision for

MSD

• Undertake workforce

transition, succession and

talent management planning

in line with our new role

• Understand and seek to fulfil

our business information

requirements

A. Waterfront: A whole-of-

MSD focus on delivery of

improved waterfront

outcomes

• Establish productivity- and

performance-based relational

contracts and reform how we

work with industry

• Improve the processes we

use to govern and plan

industry’s activity

• Begin with the Armidale-

Class Patrol Boats, the

LHD and LSD amphibious

vessels, Afloat Support

vessels and Enterprise

Naval Shipbuilding Plan

enabled by + +



Sustainment : Repair and Maintenance


Asset Management Activity Cycle

Analyse

Develop Change

Plan Maintenance

Plan Inventory

Procurement & Repair

Change

Maintain

Procure & Repair

Inventory

Measure

&

Report


MSD Support Concept

Asset Management Reviews

Support Services Reviews

Risk / Intellectual Property

Data Mgmt / Data Integrity

Decision support

Engineering Support Reviews

Configuration Assurance

Major Engineering Change

Design Margins Control

Material Condition Profiling

(stress / corrosion analysis)

Safety Case

Product Baseline

Functional Specifications

Maintenance Support Reviews

RAM Case

RCM & CBM Analysis

Maintenance Effectiveness

Maintenance Optimisation

Class Maintenance Plan

FRACAS/ DCACAS

Supply Support Reviews

Supportability Assessments

Major Systems Uniques

Life-Cycle Cost Analysis

Spares optimisation (APL/OAL)

Training Support Reviews

Training Assurance

Supply Mgmt Services

Inventory Investment

planning

Obsolescence Mgmt

TML procurement

Long-lead time mgmt

Engineering Mgmt

Services

Technical data

Minor Eng Change

URDEF diagnostic

Supply Production

Stores receipt,

verification and

staging

Maintenance

Production

Maintain Material Cert

Deliver Out of

Maintenance

Engineering Change

Production

Acceptance Tests &

Trials and V&V

Asset Usage available, reliable and

reusable

Enterprise Result Areas Availability – % MRDs

Reliability – P1 MDR

Seaworthiness

- Safety/ Environment/ Op Effect

Cost per Material Ready Day

Maintained Materiel Certification

relationship / behaviours /

responsiveness

ISS Result Areas Post Maintenance Defects • Trend Analysis – P1 & 2 URDEFs Date Out of Maintenance (DOM) Maintenance Liability & AWL Completion • No of Open Deviations • No of Open CCPs • No of Cannibalisations Logistical Supportability • TML accuracy • Allowance List Effectiveness • inventory Timeliness / Wait Times Functnal/ Physcal Baseline Accuracy Configuration Baseline Accuracy Maintenance Baseline Accuracy

Asset

Optimisation efficiency of

sustainment

RCM, CBM inventory

optimisation

Asset

Preservation ensuring longevity…

Asset availability over

Life of Type

Maintenance Mgmt

Services

Work Packages

WI / MWL / TML

Scheduling / Planning

URDEF rectification

Engineering Support (Teamcenter)

Maintenance Support (AMPS / SAP)

Supply Support (MILIS/ SLIMS/ SAP)

Enterprise & ISSC

Performance Indicators Performance

Effectiveness

Focus Areas

Implement Plan & Develop Verification & Validation

Major & Minor Acquisition Projects (Materiel Acquisition Agreements)

In Service Support (linking Asset Mgmt,

Facilities, Production, ILS & Training)

Designer / Asset

Manager Support

Customer Requirements (Materiel Sustainment Agreements – Product Schedule) Version 4 – Sep 2015

Configuration Mgmt

Training Mgmt

Services Training Courses

Training Support

Asset Management Asset Management Strategy (AMS)

Support Services Management

Wh

ole

-of-

Life A

sset M

anagem

ent

(IS

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Questions ?

Rear Admiral Mark Purcell - Department of Defence - Provision of maritime capability/sustainment in support of border security

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