EMT DND Handbook

Canada

National Défense Defence nationale

A-LP-005-000/AG-008

POLICY/MANAGEMENT PROCEDURES AND GUIDELINES

EQUIPMENT MANAGEMENT TEAM (EMT) HANDBOOK (ENGLISH) Cette publication est disponible en français sous le numéro A-LP-005-000/AG-009. Issued on Authority of the Chief of the Defence Staff

OPI: DMASP 5 2004-11-24

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LIST OF EFFECTIVE PAGES

Insert latest changed pages and dispose of superseded pages in accordance with applicable orders.

NOTE

The portion of the text affected by the latest change is indicated by a black vertical line in the margin of the page. Changes to illustrations are indicated by miniature pointing hands or black vertical lines.

Dates of issue for original and changed pages are:

Original ............................ 0 ................. 2004-11-24Ch.................................... 1 ....................................Ch.................................... 2 ....................................

Ch .................................... 3 ...................................Ch .................................... 4 ...................................Ch .................................... 5 ...................................

Zero in Change No. column indicates an original page. Total number of pages in this publication is 260 consistingof the following:

Page No. Change No. Page No. Change No.Title ........................................................................... 0 7-1 to 7-22 .................................................................0A................................................................................ 0 8-1 to 8-14 .................................................................0i/ii to xiii/xiv ................................................................ 0 9-1 to 9-4 ...................................................................01-1 to 1-30................................................................. 0 10-1 to 10-17/10-18 ...................................................02-1 to 2-33/2-34......................................................... 0 11-1 to 11-18 .............................................................03-1 to 3-15/3-16......................................................... 0 12-1 to 12-10 .............................................................04-1 to 4-22................................................................. 0 13-1 to 13-16 .............................................................05-1 to 5-14................................................................. 0 14-1 to 14-8 ...............................................................06-1 to 6-10................................................................. 0 LA-1 to LA-8 ..............................................................0

Contact Officer: DMASP 5-5

© 2004 DND/MDN Canada

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FOREWORD

1. A-LP-005-000/AG-008, Equipment Management Team (EMT) Handbook is issued on the authority of the Chief of the Defence Staff (CDS). This publication is effective on receipt.

2. Distribution is limited by NDHQ.

3. For this type of document to be effective, it must reflect current practices. Therefore, everyone who makes use of this handbook is encouraged to comment on its content and format, and to recommend additional descriptions/topics that could be of use to the EMT community at large. All comments and suggestions should be directed to the publication OPI.

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TABLE OF CONTENTS

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PART 1 – INTRODUCTION................................................................................................................................... 1-1

EQUIPMENT MANAGEMENT TEAM (EMT) HANDBOOK................................................................................... 1-1 Background ............................................................................................................................................................ 1-1 Aim ......................................................................................................................................................................... 1-1 Outline.................................................................................................................................................................... 1-1 General................................................................................................................................................................... 1-2 NATIONAL DEFENCE ORGANIZATIONAL STRUCTURE................................................................................... 1-2 National Defence Headquarters............................................................................................................................. 1-2 Materiel Group ....................................................................................................................................................... 1-3 Divisional Organisations – Equipment Program Management (EPM)................................................................... 1-4 LIFE CYCLE MANAGEMENT (LCM)..................................................................................................................... 1-6 Optimized Weapons System Management (OWSM) Concept .............................................................................. 1-7 MATERIEL ACQUISITION AND SUPPORT (MA&S)............................................................................................ 1-8 Background ............................................................................................................................................................ 1-8 MA&S Mission Statement ...................................................................................................................................... 1-9 MA&S Concepts..................................................................................................................................................... 1-9 MA&S Resources................................................................................................................................................. 1-12 EQUIPMENT MANAGEMENT TEAM.................................................................................................................. 1-12 Matrix Management ............................................................................................................................................. 1-12 Concept of Total EMTs ........................................................................................................................................ 1-12 Integral EMT......................................................................................................................................................... 1-13 Virtual EMT........................................................................................................................................................... 1-15 EMT Activities ...................................................................................................................................................... 1-16 EMT Leader ......................................................................................................................................................... 1-24 DEFENCE MANAGEMENT SYSTEM (DMS) OVERVIEW ................................................................................. 1-25 General................................................................................................................................................................. 1-25 Defence Planning Guidance (DPG) ..................................................................................................................... 1-26 Business Planning................................................................................................................................................ 1-26 Defence Services Program (DSP) ....................................................................................................................... 1-27 Performance Measurement.................................................................................................................................. 1-30

PART 2 – PROJECT AND RESOURCE MANAGEMENT.................................................................................... 2-1

INTRODUCTION.................................................................................................................................................... 2-1 General................................................................................................................................................................... 2-1 Purpose.................................................................................................................................................................. 2-1 Definitions............................................................................................................................................................... 2-1 Application of Project Management ....................................................................................................................... 2-2 Responsibilities of the EMT Leader ....................................................................................................................... 2-3 PROJECT AND RESOURCE MANAGEMENT PRINCIPLES............................................................................... 2-4 Introduction ............................................................................................................................................................ 2-4 Project Life Cycle ................................................................................................................................................... 2-4 Project Management Knowledge Areas................................................................................................................. 2-6

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TABLE OF CONTENTS (Cont)

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Project Management Organization ........................................................................................................................ 2-7 Project Guidance Documentation .......................................................................................................................... 2-8 APPLICATION TO CAPITAL PROJECTS ............................................................................................................. 2-9 Introduction............................................................................................................................................................. 2-9 Roles and Relationships ...................................................................................................................................... 2-10 Preparation of Project Documentation ................................................................................................................. 2-11 Capital Projects Approval..................................................................................................................................... 2-12 Development of Defence Management System (DMS) Decision Documentation............................................... 2-14 Project Transition (PM to In-service Support) ...................................................................................................... 2-19 Summary .............................................................................................................................................................. 2-20 APPLICATION TO IN-SERVICE PROJECTS ..................................................................................................... 2-21 Introduction........................................................................................................................................................... 2-21 Business Planning Process.................................................................................................................................. 2-21 Equipment Support Plan (ESP)............................................................................................................................ 2-22 Equipment Program Plan (EPP) .......................................................................................................................... 2-23 Using the Planning and Control Framework to Create and Execute an Integrated EMT Program ..................... 2-24 Initiating a New/Updated EMT Program .............................................................................................................. 2-24 Planning the EMT Program.................................................................................................................................. 2-24 Executing the EMT Program................................................................................................................................ 2-25 Controlling the EMT Program............................................................................................................................... 2-26 Completing an EMT Program Phase/Cycle ......................................................................................................... 2-26 BUDGET FORECASTING AND ESTIMATION ................................................................................................... 2-26 Introduction........................................................................................................................................................... 2-26 Capital/MR versus NP.......................................................................................................................................... 2-27 Preparing Submissions of National Procurement Estimates ............................................................................... 2-29 Financial Management Accounting System (FMAS) ................................................................................... 2-33/2-34

PART 3 – QUALITY MANAGEMENT ................................................................................................................... 3-1

INTRODUCTION.................................................................................................................................................... 3-1 DND Quality Program ............................................................................................................................................ 3-1 Definitions............................................................................................................................................................... 3-1 DND Quality Management System (QMS) ............................................................................................................ 3-2 Quality Organization............................................................................................................................................... 3-3 ESTABLISHING AND MONITORING QUALITY REQUIREMENTS ..................................................................... 3-4 Introduction............................................................................................................................................................. 3-4 Quality and Management Systems Leadership ..................................................................................................... 3-4 Quality Contracting................................................................................................................................................. 3-5 Management System Evaluation (MSE) ................................................................................................................ 3-5 Quality Surveillance ............................................................................................................................................... 3-6 Quality Performance .............................................................................................................................................. 3-6 Interface with DND QA Staff .................................................................................................................................. 3-7 ESTABLISHING AND MONITORING PRODUCT QUALIFICATION .................................................................... 3-8 Introduction............................................................................................................................................................. 3-8 Product Qualification .............................................................................................................................................. 3-9 Reviewing and Updating Qualified Products Lists (QPLs) and Qualified Manufacturers’ Lists (QMLs)................ 3-9

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PERFORMANCE MEASUREMENT .................................................................................................................... 3-10 Introduction .......................................................................................................................................................... 3-10 Background .......................................................................................................................................................... 3-10 Definition .............................................................................................................................................................. 3-10 Performance Measures........................................................................................................................................ 3-11 Performance Measurement Activities .................................................................................................................. 3-11 Effects of Performance Measurement ................................................................................................................. 3-12 Selecting Appropriate Performance Indicators .................................................................................................... 3-12 Balanced Scorecard Approach to Performance Measurement ........................................................................... 3-13 Performance Management Operating Guidelines ............................................................................................... 3-14 Planning and Budgeting............................................................................................................................... 3-15/3-16 Measurement and Reporting ....................................................................................................................... 3-15/3-16 Performance Measurement in Action........................................................................................................... 3-15/3-16

PART 4 – SYSTEMS ENGINEERING................................................................................................................... 4-1

OVERVIEW............................................................................................................................................................ 4-1

ENGINEERING MANAGEMENT ........................................................................................................................... 4-1 Introduction ............................................................................................................................................................ 4-1 Scope of Engineering Management....................................................................................................................... 4-2 Engineering Activities............................................................................................................................................. 4-2 Engineering and Support Management Plans (E&SMPs) ..................................................................................... 4-4 Research and Development (R&D) ....................................................................................................................... 4-4 Engineering Standards and Specifications ............................................................................................................ 4-4 Engineering Design................................................................................................................................................ 4-8 Engineering Analysis............................................................................................................................................ 4-11 Engineering Evaluations and Tests ..................................................................................................................... 4-13 Engineering Production........................................................................................................................................ 4-13 MANAGING ENGINEERING CHANGES (MECs) ............................................................................................... 4-15

SYNTHETIC ENVIRONMENT BASED ACQUISITION (SEBA) .......................................................................... 4-18 Background .......................................................................................................................................................... 4-18 Definitions............................................................................................................................................................. 4-18 Characteristics of SEBA....................................................................................................................................... 4-18 SEBA Support Organization................................................................................................................................. 4-20 SEBA’s Impact on the EMT.................................................................................................................................. 4-20

PART 5 – MAINTENANCE MANAGEMENT ........................................................................................................ 5-1

INTRODUCTION TO MAINTENANCE MANAGEMENT ....................................................................................... 5-1 Maintenance Program............................................................................................................................................ 5-1 Maintenance Planning............................................................................................................................................ 5-2 Maintenance Implementation................................................................................................................................. 5-4 Maintenance Monitoring......................................................................................................................................... 5-4 Maintenance Improvement..................................................................................................................................... 5-6

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MAINTENANCE POLICY AND PROCEDURES.................................................................................................... 5-9 Introduction............................................................................................................................................................. 5-9 Requirement for Policies and Procedures ............................................................................................................. 5-9 Reviewing and Updating Policies and Procedures .............................................................................................. 5-10 TECHNICAL ASSISTANCE................................................................................................................................. 5-11 General................................................................................................................................................................. 5-11 Maintenance Contract Coordination .................................................................................................................... 5-12

PART 6 – ENVIRONMENTAL MANAGEMENT.................................................................................................... 6-1

OVERVIEW............................................................................................................................................................ 6-1 DND Environmental Policy..................................................................................................................................... 6-1 Concept of Due Diligence ...................................................................................................................................... 6-1 Environmental Management .................................................................................................................................. 6-1 ENVIRONMENTAL IMPACT ANALYSIS............................................................................................................... 6-2

HAZARDOUS MATERIAL (HAZMAT) MANAGEMENT ........................................................................................ 6-3 Definition ................................................................................................................................................................ 6-3 Identification of Hazardous Material....................................................................................................................... 6-3 EMT Life Cycle Responsibilities............................................................................................................................. 6-4 NUCLEAR/RADIOACTIVE MATERIAL MANAGEMENT....................................................................................... 6-5 Conception and Acquisition.................................................................................................................................... 6-5 In-service................................................................................................................................................................ 6-7 Disposal.................................................................................................................................................................. 6-7 ELECTROMAGNETIC (ENVIRONMENT) MANAGEMENT .................................................................................. 6-7 Electromagnetic Effect Management ..................................................................................................................... 6-8 Acquisition of EM Equipment ................................................................................................................................. 6-8 EM Radiation Safety .............................................................................................................................................. 6-9 Laser Safety ........................................................................................................................................................... 6-9

PART 7 – CONFIGURATION MANAGEMENT (CM)............................................................................................ 7-1

INTRODUCTION.................................................................................................................................................... 7-1 General................................................................................................................................................................... 7-1 CM Organization .................................................................................................................................................... 7-2 CM During the In-service Stage............................................................................................................................. 7-3 CM Sub-processes................................................................................................................................................. 7-4 CONFIGURATION IDENTIFICATION ................................................................................................................... 7-5 Introduction............................................................................................................................................................. 7-5 CI Selection............................................................................................................................................................ 7-6 Configuration Documentation................................................................................................................................. 7-9 Baseline Management in Configuration Identification.......................................................................................... 7-11 Numbering............................................................................................................................................................ 7-12

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CONFIGURATION CONTROL ............................................................................................................................ 7-13 General................................................................................................................................................................. 7-13 Change Control Process...................................................................................................................................... 7-14 Engineering Change Factors ............................................................................................................................... 7-14 Initiating/Reviewing Change Requests ................................................................................................................ 7-16 CONFIGURATION STATUS ACCOUNTING ...................................................................................................... 7-18

CONFIGURATION AUDITS................................................................................................................................. 7-20 Introduction .......................................................................................................................................................... 7-20 Overseeing the Contractor’s Configuration Audit Program.................................................................................. 7-20

PART 8 – INTEGRATED LOGISTICS SUPPORT (ILS)....................................................................................... 8-1

GENERAL .............................................................................................................................................................. 8-1 Introduction to ILS .................................................................................................................................................. 8-1 EMT Leadership Responsibilities........................................................................................................................... 8-4 LOGISTICS SUPPORT ANALYSIS (LSA)............................................................................................................. 8-5 Introduction ............................................................................................................................................................ 8-5 Tasks...................................................................................................................................................................... 8-6 LSA Techniques..................................................................................................................................................... 8-6 Maintenance Planning............................................................................................................................................ 8-8 Monitoring and Updating Support Requirements................................................................................................... 8-9 INITIAL PROVISIONING (IP)............................................................................................................................... 8-10 Introduction .......................................................................................................................................................... 8-10 EMT Activities During the IP Process .................................................................................................................. 8-11 Equipment Support List (ESL).............................................................................................................................. 8-12 Provision of New Item Advice During the IP Process .......................................................................................... 8-13 Materiel Change Notices (MCNs) ........................................................................................................................ 8-13 Product Warranty Requirements.......................................................................................................................... 8-13

PART 9 – RELIABILITY AND MAINTAINABILITY (R&M)................................................................................... 9-1

INTRODUCTION.................................................................................................................................................... 9-1 Definition ................................................................................................................................................................ 9-1 Application.............................................................................................................................................................. 9-1 R&M IN THE EMT.................................................................................................................................................. 9-3 Maintenance Planning............................................................................................................................................ 9-3 ILS Planning........................................................................................................................................................... 9-3 R&M SUPPORT..................................................................................................................................................... 9-4

PART 10 – TECHNICAL DATA MANAGEMENT ............................................................................................... 10-1

OVERVIEW.......................................................................................................................................................... 10-1 Technical Data ..................................................................................................................................................... 10-1 Technical Data Management (TDM).................................................................................................................... 10-1

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TDM Responsibilities ........................................................................................................................................... 10-2 Development of Technical Data Requirements ................................................................................................... 10-3 Periodic Review and Updating............................................................................................................................. 10-4 MATERIEL MASTER RECORD (MMR) .............................................................................................................. 10-6 Introduction........................................................................................................................................................... 10-6 Materiel Master Record (MMR)............................................................................................................................ 10-6 Consolidated Area Repository (CAR) .................................................................................................................. 10-6 Overarching MMR Concept and Operating Principles......................................................................................... 10-7 Equipment Management Team (EMT)................................................................................................................. 10-7 Supply Manager (SM) .......................................................................................................................................... 10-7 Technical Authority (TA)....................................................................................................................................... 10-7 TECHNICAL PUBLICATIONS ............................................................................................................................. 10-8 Introduction........................................................................................................................................................... 10-8 Primary Acquisition Method ................................................................................................................................. 10-8 Publication Authorship Service (PAS) Contract ................................................................................................... 10-8 Publication Management Service (PMS) ............................................................................................................. 10-8 Developing Technical Publications through Departmental Standing Offer .......................................................... 10-8 Commercial and Foreign Government Publications ............................................................................................ 10-9 Changes and Revisions to Technical Publications .............................................................................................. 10-9 National Defence Index of Documentation (NDID) / Equipment Identification and

Documentation Database (EID)....................................................................................................................... 10-10 DISTRIBUTION, CONTROL AND STORAGE OF TECHNICAL DATA............................................................. 10-10 Introduction......................................................................................................................................................... 10-10 Litigation ............................................................................................................................................................. 10-10 Distribution of Technical Data ............................................................................................................................ 10-11 Storing and Archiving Technical Data................................................................................................................ 10-11 Filing/Retrieval of Technical Data ...................................................................................................................... 10-11 Maintaining a Technical Data Retrieval System ................................................................................................ 10-12 ENGINEERING DRAWINGS AND ASSOCIATED DATA ................................................................................. 10-13 Drawing Levels................................................................................................................................................... 10-13 Technical Data Package (TDP).......................................................................................................................... 10-13 Acquiring Engineering Data ............................................................................................................................... 10-14 Revising Engineering Drawings and Associated Data....................................................................................... 10-14 DISPOSAL OF TECHNICAL DOCUMENTATION............................................................................................. 10-15 Introduction......................................................................................................................................................... 10-15 Initiation of Disposal of Surplus Technical Data................................................................................................. 10-16

PART 11 – SUPPLY AND INVENTORY MANAGEMENT.................................................................................. 11-1

GENERAL ............................................................................................................................................................ 11-1

NEW ITEM ADVICE............................................................................................................................................. 11-1 General................................................................................................................................................................. 11-1 Defining Cataloguing Requirements .................................................................................................................... 11-2 Establishing the Shelf Life and Shelf Life Code (SLC) ........................................................................................ 11-2

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Warranty, Service and Shelf Life Management ................................................................................................... 11-3 Component Service Life....................................................................................................................................... 11-4 Establishing Storage Characteristics Handling Codes (SCHCs) ......................................................................... 11-5 CFSS MASTER DATABASE (CFSS MDB) ......................................................................................................... 11-6 Introduction .......................................................................................................................................................... 11-6 Updating the CFSS MDB ..................................................................................................................................... 11-6 Reviewing/Updating Information on the CFSS MDB ........................................................................................... 11-7 Monitoring/Updating Component Life .................................................................................................................. 11-7 AUTOMATED REPROVISIONING ...................................................................................................................... 11-8 General................................................................................................................................................................. 11-8 Technical Support to the Reprovisioning Process ............................................................................................... 11-8 Reviewing/Updating Procurement Instruments (PIs) and Materiel Requirements Listings (MRLs) .................... 11-8 Segregation of Mixed Stocks ............................................................................................................................... 11-8 Excess Stock Management.................................................................................................................................. 11-8 REPAIR AND OVERHAUL ................................................................................................................................ 11-10

STOCK CONTROL ............................................................................................................................................ 11-11 Introduction ........................................................................................................................................................ 11-11 Establishment, Control and Review of Materiel Reservations ........................................................................... 11-11 Stock Quarantine Action .................................................................................................................................... 11-11 Controlling the Removal of Items from Major Equipment in Storage................................................................. 11-11 Control of Materiel in Critical Supply.................................................................................................................. 11-12 LOAN OF MATERIEL ........................................................................................................................................ 11-13

MANAGEMENT OF SPECIAL MATERIEL ........................................................................................................ 11-14 Introduction ........................................................................................................................................................ 11-14 Management of Piezoelectric Devices............................................................................................................... 11-14 Management of Electrostatic Discharge (ESD) Sensitive Electrical/Electronic Parts........................................ 11-15 Responsibilities for Petroleum Products ............................................................................................................ 11-16 SUPPORT TO OPERATIONS ........................................................................................................................... 11-16 General............................................................................................................................................................... 11-16 Concept of Operational Support ........................................................................................................................ 11-17

PART 12 – DISPOSAL MANAGEMENT............................................................................................................. 12-1

OVERVIEW.......................................................................................................................................................... 12-1

INITIATING DISPOSAL ....................................................................................................................................... 12-2

DISPOSAL PLANNING........................................................................................................................................ 12-4 Introduction .......................................................................................................................................................... 12-4 Defining Disposal Requirements.......................................................................................................................... 12-5 Selecting a Disposal Process............................................................................................................................... 12-6 Controlled Goods ................................................................................................................................................. 12-6 Supporting the Preparation of a Disposal/Investment Recovery Plan................................................................. 12-7

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PHYSICAL DISPOSAL OF MATERIEL ............................................................................................................... 12-7 Introduction........................................................................................................................................................... 12-7 Supporting the Disposal of Major Equipment and Systems................................................................................. 12-8 Supporting the Disposal of Minor Equipment and Spares ................................................................................... 12-8 Supporting the Disposal of Automated Data Processing (ADP) Equipment........................................................ 12-9 Supporting the Disposal of Technical Data.......................................................................................................... 12-9 Disposal at Remote Sites and Outside Canada................................................................................................. 12-10

PART 13 – PROCUREMENT MANAGEMENT................................................................................................... 13-1

INTRODUCTION.................................................................................................................................................. 13-1

PROCUREMENT CONCEPTS............................................................................................................................ 13-2 Types of Procurement.......................................................................................................................................... 13-2 Procurement Process........................................................................................................................................... 13-3 Types of Solicitation ............................................................................................................................................. 13-3 Responsibilities .................................................................................................................................................... 13-3 PROCUREMENT PLANNING.............................................................................................................................. 13-4 Introduction........................................................................................................................................................... 13-4 Procurement Master Plan .................................................................................................................................... 13-5 Identification of Procurement Requirements........................................................................................................ 13-5 Requesting Price and Availability (P&A) .............................................................................................................. 13-5 Obtaining Authorization and Funding................................................................................................................... 13-7 EMT SUPPORT TO PROCUREMENT INSTRUMENT DEVELOPMENT........................................................... 13-8 Procurement Instrument....................................................................................................................................... 13-8 EMT/Technical Authority Responsibilities............................................................................................................ 13-8 Preparation of a Statement of Work (SOW)......................................................................................................... 13-9 Preparation of a Technical Description of the Required Goods......................................................................... 13-11 Development of a List of Contract Deliverables................................................................................................. 13-12 Identification and Documentation of Terms and Conditions (T&Cs).................................................................. 13-12 Request for Procurement Action........................................................................................................................ 13-12 CONTRACT MANAGEMENT (TECHNICAL) .................................................................................................... 13-14 General............................................................................................................................................................... 13-14 Monitoring Progress ........................................................................................................................................... 13-14 Monitoring the Use of Government Material ...................................................................................................... 13-15 Evaluating and Accepting Contract Deliverables ............................................................................................... 13-15

PART 14 – INTERNATIONAL PROJECTS AND WORKING GROUPS............................................................ 14-1

INTRODUCTION.................................................................................................................................................. 14-1

GENERAL GUIDELINES ..................................................................................................................................... 14-1

INTERNATIONAL WORKING GROUPS AND COMMITTEES ........................................................................... 14-2 Introduction........................................................................................................................................................... 14-2 Procedures ........................................................................................................................................................... 14-2 Considerations ..................................................................................................................................................... 14-3

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INTERNATIONAL PROJECTS ............................................................................................................................ 14-4 Introduction .......................................................................................................................................................... 14-4 Benefits of International Projects ......................................................................................................................... 14-4 Risks of International Projects.............................................................................................................................. 14-5 Project Categories................................................................................................................................................ 14-5 Guidance for International Projects...................................................................................................................... 14-5 Character of International Projects ...................................................................................................................... 14-7 LIST OF ABBREVIATIONS.................................................................................................................................LA-1

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LIST OF FIGURES

FIGURE TITLE PAGE

1-1 NDHQ Organization............................................................................................................................ 1-3 1-2 ADM(Mat) Organisation...................................................................................................................... 1-4 1-3 Generic EPM Organisation................................................................................................................. 1-5 1-4 Asset Cost over the Life Cycle ........................................................................................................... 1-8 1-5 MA&S Process Areas and Phases................................................................................................... 1-10 1-6 MA&S Process Model (First Level Breakdown) ............................................................................... 1-11 1-7 DMS Overview.................................................................................................................................. 1-25 1-8 DND Capability Components............................................................................................................ 1-27 2-1 Advantages and Benefits of Project Management for the EMT Leader ............................................. 2-3 2-2 DGMEPM Project Phases .................................................................................................................. 2-5 2-3 LCMS and DMS Project Phases ........................................................................................................ 2-6 2-4 Generic Project Organisation ............................................................................................................. 2-8 2-5 Project Phases / Project Documentation.......................................................................................... 2-13 2-6 Project Management Phases ........................................................................................................... 2-15 2-7 Project Document Staffing................................................................................................................ 2-20 2-8 Planning and Control Framework ..................................................................................................... 2-23 2-9 Funding Sources............................................................................................................................... 2-28 2-10 NP Estimates .................................................................................................................................... 2-29 3-1 Departmental Performance Management Framework ..................................................................... 3-11 3-2 Example Evaluation Framework....................................................................................................... 3-13 3-3 Balanced Scorecard Structure.......................................................................................................... 3-14 4-1 Engineering Management Activities and Typical Documentation ...................................................... 4-3 4-2 Acquisition Cost as a Function of Specification Detail ....................................................................... 4-7 4-3 Technical Analysis Products............................................................................................................. 4-12 4-4 Roles of M&S in DMS and MA&S..................................................................................................... 4-19 4-5 SEWG Organisations ....................................................................................................................... 4-20 4-6 M&S Stakeholders Through LCMS Stages ...................................................................................... 4-21 5-1 Maintenance Activities........................................................................................................................ 5-1 5-2 Detailed Activities of Maintenance Planning ...................................................................................... 5-3 5-3 Detailed Activities of Maintenance Implementation............................................................................ 5-4 5-4 In-service Maintenance Context ......................................................................................................... 5-5 5-5 Detailed Activities of Maintenance Monitoring.................................................................................... 5-6 5-6 Detailed Activities of Maintenance Improvement ............................................................................... 5-7 5-7 Maintenance Policy Areas of Interest................................................................................................. 5-9 5-8 Preferred Medium for Disseminating Policy ..................................................................................... 5-10 7-1 CI Selection Criteria............................................................................................................................ 7-6 7-2 Functional Breakdown Structure ........................................................................................................ 7-7 7-3 System Breakdown Structure ............................................................................................................. 7-8 7-4 CM Baselines through the System’s Life Cycle................................................................................ 7-11 7-5 Ratio of Factors Leading to ECPs .................................................................................................... 7-15 7-6 Configuration Control Task List ........................................................................................................ 7-15 7-7 Change Request Process................................................................................................................. 7-17 7-8 Configuration Control Board ............................................................................................................. 7-17 7-9 CSA Task List ................................................................................................................................... 7-19

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LIST OF FIGURES (Cont)

FIGURE TITLE PAGE

7-10 Configuration Audit Task List............................................................................................................ 7-20 8-1 ILS Elements ...................................................................................................................................... 8-2 8-2 ILS Relationship to System Engineering ............................................................................................ 8-3 8-3 LSA Process....................................................................................................................................... 8-6 8-4 Maintenance Plan Development ........................................................................................................ 8-8 8-5 Logistics Support Monitoring .............................................................................................................. 8-9 10-1 Technical Data Management Interfaces........................................................................................... 10-3 10-2 Custodial Duties of Technical Data Repositories ............................................................................. 10-5 10-3 RTD Disposal Process ................................................................................................................... 10-16 11-1 Establishing Shelf Life ...................................................................................................................... 11-3 11-2 Overview of the Loan Process........................................................................................................ 11-13 11-3 NDHQ J Staff Organization ............................................................................................................ 11-17 12-1 Disposal Processes .......................................................................................................................... 12-2 12-2 Initiate Disposal Process .................................................................................................................. 12-3 12-3 Disposal Planning Processes........................................................................................................... 12-4 13-1 Competitive and Sole-source Processes ......................................................................................... 13-2 13-2 EMT Support to Procurement........................................................................................................... 13-4 13-3 Procurement Requirement Identification .......................................................................................... 13-6 13-4 Typical Content of a Requisition for Competitive Procurement........................................................ 13-8 13-5 Example of a SOW Development Framework................................................................................ 13-10 13-6 SOW Effectiveness Checklist ......................................................................................................... 13-11

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PART 1

INTRODUCTION

EQUIPMENT MANAGEMENT TEAM (EMT) HANDBOOK

BACKGROUND

1. The Department of National Defence (DND) devotes a significant amount of resources to equipment. These equipment assets (ships, aircraft, vehicles, information systems, etc.) represent essential tools to accomplish the mission of the Canadian Forces (CF) and can be treated as investments. As with any investment, the investment in materiel has the potential for both significant gain (in terms of added capability) and significant financial loss if an expensive asset provides little or no support to DND objectives.

2. Equipment Management Teams (EMTs) have been created to ensure that any investment in the acquisition and maintenance of materiel is well-founded, and that any currently held equipment assets continue to benefit DND in meeting its objectives. EMT Leaders have direct responsibility for the delivery, maintenance and disposal of CF equipment and systems in the most efficient and cost effective manner possible.

3. The EMT Handbook elaborates on the government asset management policy in a cohesive, workable body of practice and knowledge for the effective management of physical assets. This handbook guides the EMT staff through the array of policies, procedures and personnel that comprise the Materiel Acquisition and Support (MA&S) system.

AIM

4. The aim of the EMT Handbook is to provide:

a. An index of major EMT activities;

b. A brief explanation of those activities; and

c. A list of relevant references and points of contact.

OUTLINE

5. The EMT Handbook meets this aim by providing a ready reference to applicable MA&S policies and procedures and by explaining the “why” associated with materiel management processes. Any explanation of “how” to accomplish certain processes is restricted to high-level functions. For details of how to accomplish working-level processes, refer to the MA&S Desktop and the Life Cycle Materiel Manager (LCMM) Activities Handbook. The long term vision is to incorporate the information from the LCMM Activities Handbook into the MA&S Desktop and phase out the LCMM Activities Handbook.

6. The EMT Handbook is divided into six sections comprising a total of 14 parts:

a. Part 1 (Introduction) provides an introduction to materiel management and the EMT working environment.

b. Part 2 (Project and Resource Management) and Part 3 (Quality Management) discuss management theory and processes.

c. Part 4 (Systems Engineering), Part 5 (Maintenance Management), and Part 6 (Environmental Management) discuss technically oriented management processes.

d. Part 7 (Configuration Management), Part 8 (Integrate Logistics Support), Part 9 (Reliability and Maintainability), Part 10 (Technical Data Management), Part 11 (Supply and Inventory Management) and Part 13 (Procurement Management) introduces Integrated Logistics Support (ILS) and its associated processes.

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e. Part 12 (Disposal Management) provides general guidance on disposal.

f. Part 14 (International Projects and Working Groups) provides general guidance for any EMT operating in an international forum.

7. The EMT Handbook is a reference tool and is not a replacement for authoritative documents such as orders, instructions, specifications or standards.

GENERAL

8. Since each environment has developed its own terms, there may be some inconsistencies between the terminology used in this handbook and that used within individual EMTs. This is the result of both the dynamic nature of materiel management and the objective of providing an environmentally neutral EMT Handbook. A good example of this is the term “Equipment Management Team.” Although the concept of unified and integrated technical, logistics and project management support has been adopted, the term EMT has not entered into common usage within these three environments. Any differences in terminology should not limit the usability of this handbook.

9. Part 1 (Introduction) provides an introduction to materiel management and the role of the EMT within that framework. It introduces the:

a. Organizational Structure of National Defence Headquarters (NDHQ) and the Materiel Group.

b. Life Cycle Management (LCM) policy.

c. MA&S process.

d. EMT concept.

e. Defence Management System (DMS).

10. This part is intended only to provide an overview. For a detailed description of EMT activities, consult the applicable part of this handbook.

NATIONAL DEFENCE ORGANIZATIONAL STRUCTURE

NATIONAL DEFENCE HEADQUARTERS

11. Collectively, the groups/organisations forming National Defence Headquarters are responsible for the planning, directing and controlling of departmental policy, security, finance, information, personnel, and materiel. The organization chart for NDHQ showing these functions is contained in Figure 1-1. Within this structure, the Materiel Group has been assigned functional authority for MA&S activities. Other groups have some responsibility in this area including: Assistant Deputy Minister (Infrastructure and Environment) (ADM[IE]) for equipment used in support of DND Infrastructure, Assistance Deputy Minister (Information Management) (ADM[IM]) for equipment employed in support of information technology and Assistant Deputy Minister (Human Resources – Military) (ADM[HR-Mil]) for medical and dental equipment.

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Figure 1-1 NDHQ Organization

12. Particularly important to all EMT members and EMT operations are the Environmental Chiefs of Staff (ECS): Chief of the Land Staff (CLS); Chief of the Air Staff (CAS); and Chief of the Maritime Staff (CMS). These organisations play a critical role in the Defence Management System (DMS) and related MA&S processes in that they provide operational and user input to capital procurement and in-service support programs. It is important that EMT Leaders identify, establish and maintain an effective relationship with the applicable sections in these organisations since much of the business planning process (and subsequent adjustments) depends on close liaison and interaction with environmental staffs.

MATERIEL GROUP

13. Assistant Deputy Minister (Materiel) (ADM[Mat]) is responsible for the development, acquisition and logistic support of most of the materiel acquired by DND. As shown in Figure 1-2, the materiel group consists of eight divisions that provide a wide spectrum of materiel management support functions. The actual materiel management support functions and activities specific to commodities, equipment, and systems are performed within the Equipment Program Management (EPM) Divisions. These are:

a. Director General Aerospace Equipment Program Management (DGAEPM).

b. Director General Land Equipment Program Management (DGLEPM).

c. Director General Maritime Equipment Program Management (DGMEPM).

d. Director General Equipment Program Services (DGEPS).

Minister National Defence

Assistant Deputy Minister(Policy)

Assistant Deputy Minister(Materiel)

Assistant Deputy Minister(Finance & Corporate Services)

Assistant Deputy Minister(Infrastructure and Environment)

Assistant Deputy MinisterHuman Resources

(Civilian)

Deputy Chief of the Defence Staff

Chief of the Maritime Staff

Chief of the Land Staff

Chief of the Air Staff

Ombudsman

Judge Advocate General

Vice Chief of the Defence Staff

Canadian Forces Provost

Marshall

Director General Public Affairs

Chief Review Services

DND/CF Legal

Advisor

DM Dept JusticeAssistant Deputy Minister

(Information Management)

Assistant Deputy Minister Science and Technology

Associate DM National Defence

Assistant Deputy Minister(Office of Critical

Infrastructure Protection & Emergency Preparedness)

Military Police Complaints Commission

CF Grievance Board

Assistant Deputy MinisterHuman Resources

(Military)

Deputy Minister National Defence

Chief of the Defence Staff

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14. Major Crown projects, such as the Maritime Helicopter Project (MHP), may also fall under direct ADM(Mat) supervision. The remainder of the materiel group supports a variety of Department-wide activities. A Division Head responsible to the ADM controls each division.

Figure 1-2 ADM(Mat) Organisation

DIVISIONAL ORGANISATIONS – EQUIPMENT PROGRAM MANAGEMENT (EPM)

15. EPM organisations are designed to have a clear environmental or customer focus and are structured to support integrated equipment systems management. The generic model of an EPM is shown at Figure 1-3.

16. An EPM consists of:

a. A small Business Management Team (BMT) which focuses on EPM business planning and stewardship of financial and human resources.

b. Several multi-disciplined EMTs whose composition varies as a result of their unique environmental requirement.

c. An EPM Support Services Team (SST) which provides specialist or unique EPM support to the EMTs or BMTs.

17. Within EPMs, EMTs may be structured by fleet grouping, a specific capability group (e.g. transport aircraft, artillery equipment), or by a mix of equipment/services/common user items.

18. The BMT:

a. Provides the resource stewardship and comptroller function, forming a link between the EMTs and EPM management.

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Figure 1-3 Generic EPM Organisation

b. Integrates EPM business planning with environmental and departmental strategic planning.

c. Develops and implements a management reporting system that provides timely, accurate and relevant information on both the effectiveness and efficiency of the EPM program.

d. Implements and coordinates processes to support the application of appropriate financial management policies and practices.

e. Provides a central source of advice and information to EMT managers on effective planning, allocating and spending of resources.

f. Coordinates the application of HR management policies, practices and planning.

g. Provides administrative services.

19. EMTs provide the primary focal point for operational equipment support. These teams provide a single point of contact and accountability for their assigned equipment or projects. The size and mandate of an EMT are influenced by the methodology for grouping equipment and services. Typically, the size of an EMT will range from less than 10 to over 100 Full Time Equivalents (FTEs). Key features of these teams include:

a. Integration of engineering/maintenance with supply/finance/procurement roles;

b. Integration of PWGSC and operational staffs into the equipment management team;

c. Embedded accountability for Quality Assurance (QA);

d. Greater synergy between sustainment projects and major change projects;

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e. Clear lines of accountability and improved communications;

f. A flexible team structure capable of responding to future changes; and

g. An emphasis on multi-skilled generalists, supported by functional specialists. An individual team will not replicate the need for specialist expertise, which will be drawn from an EPM SST or other cluster service providers within DND or external to it.

20. The EMT Leader is the Design Authority (DA) for all the EMT’s assigned equipment. EMTs manage cost, schedule and performance for their assigned equipment and projects (including major capital acquisition projects) in accordance with the approved business plan. EMTs are the vehicle for establishing Service Level Agreements (SLAs) with customers or service providers.

21. SSTs are small teams that provide the EPMs with competencies and specialized skills in specific fields of expertise. These services are environmentally unique and provide specific support of all EMTs within that EPM organization. These specialist services may be colocated near the EMTs or available at the field units. Three examples are:

a. Specifications. Refers to the definition of the minimum performance requirement for procuring and certifying goods and services, including quality requirements.

b. Applied Engineering. Refers to the direct application of engineering skills to design requirements, system integration, fleet integrity or verification functions, (e.g. airworthiness, naval architecture, network architectural design).

c. Development. Includes technology working groups or dedicated resources assigned to defining equipment development opportunities or managing delivery of development projects.

LIFE CYCLE MANAGEMENT (LCM)

22. Acquiring physical assets involves making a long-term commitment to their introduction into service, support during service, and eventual removal from service. It is important to keep in mind that the total cost of owning a physical asset is not restricted to the acquisition cost. Assets incur costs from the time of conception; a price is paid for their acquisition; support and enhancement costs accrue in operational service; and even in the disposal phase, there are financial commitments in removing assets from operational service and disposing of supporting materiel. Since the scope of materiel used in DND is vast and there are limits on the funds available to acquire and support those assets, a structured management philosophy is used to coordinate all materiel-related activities. This philosophy is called Life Cycle Management (LCM). The aim of LCM is to ensure that all MA&S activities:

a. are conducted according to approved policy;

b. are based on established plans and decisions; and

c. reflect an awareness of future CF requirements.

23. Treasury Board has imposed the use of LCM on all government departments. The Treasury Board Secretariat Materiel Management Policy states that government materiel shall be managed over the entire life cycle of the materiel. This will ensure that materiel meets departmental operational requirements for effective program delivery and that the government (and its departments) achieve value for money when planning, acquiring, using and disposing of materiel assets.

24. Within DND, LCM is defined as, “all activities required to support any item of materiel from the time of its initial conception to the time of its disposal from the Canadian Forces.” These activities are grouped into four distinct managerial phases called Life Cycle Stages.

a. Conception Stage. Those activities necessary to the development, definition and selection of a preferred means (i.e. defence equipment or system) of satisfying a defence capability requirement.

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b. Acquisition Stage. Those activities directed toward the acquisition, installation and provision of initial and future logistics support resources for the preferred equipment or system.

c. In-service Stage. Those activities concerned with all facets of design, engineering and continuing logistics support for the materiel throughout its operational life (including while in storage).

d. Disposal Stage. Those activities required to identify and remove surplus materiel from the CF inventory. This includes any associated support equipment and/or logistics support resources that are subsequently rendered no longer useful.

25. The Life Cycle Management System (LCMS) is the set of processes designed to implement LCM. The LCMS provides a formal structure within which the control, integration and accountability for engineering, maintenance and logistics support of physical assets can be effectively exercised. The objective of implementing the LCMS is to maximize the benefit of using an asset while minimising the cost of that capability.

26. DND LCM policy is contained in the LCMM Activities Handbook.

OPTIMIZED WEAPONS SYSTEM MANAGEMENT (OWSM) CONCEPT

27. Within the context of LCM, there is an emerging equipment management paradigm called Optimized Weapons System Management (OWSM). OWSM has come to signify the practice of looking at an equipment’s support needs as a complete support system (and not the sum of the support system’s parts) with special emphasis on the relationship between internally and externally provided support. The aim of OWSM is to establish and maintain an optimal support environment over the entire life cycle of an asset. OWSM recognises that:

a. The majority of costs associated with a system over its life cycle occurs in the in-service phase.

b. The technical effort to resolve support issues is often overwhelmed by the contractual effort required to effect the change.

c. Management tends to focus on the acquisition cost (relatively small) as opposed to the support costs (relatively large).

28. The OWSM concept is to identify the complete life cycle support requirements of a weapon system, and to determine what support should be provided by the Department (the internal support component) and what support should be provided by an external service provider (the contracted support component). The term Optimized Weapons System Support (OWSS) is used to identify the contracted support element of an OWSM implementation. OWSM is a concept that encourages EMTs to make equipment support decisions that are based on the Life Cycle Cost (LCC) of an asset from the conception phase onwards. As stated earlier, assets start to incur costs the moment they are conceived; a price is paid for their acquisition; support costs and enhancement costs accrue during the in-service phase, and there are financial commitments in removing and disposing of the asset and its associated materiel in the disposal phase. The LCC represents the total cost of owning an asset, the accrued actual cost to DND, through all its life cycle phases.

29. Figure 1-4 illustrates the relative spending rate associated with a new asset over its life cycle. The conception and acquisition phases are driven by the project “S” curve. During these phases, the cost of the asset increases as more work is performed. When the asset enters the in-service phase, there are likely to be residual design-related challenges from the acquisition and new engineering change proposals that need resolution. As the asset progresses through the “in-service” phase, many of these initial challenges are resolved. In-service operating cost remains fairly constant (if usage and operational requirements remain constant) until an increased number of problem reports begin to be raised. At this point, the problem reports are monitored by the EMT to determine if they are anomalies or part of a continuing trend. Once a continuing trend is identified, the decision is taken to dispose of (or recapitalize) the asset. The LCC of the asset is the area under the spending rate curve as it progresses through all four life cycle phases.

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Figure 1-4 Asset Cost over the Life Cycle

30. OWSM considers not only the degree of materiel support provided to an asset, but also the organizational structure (DND or Contractor) employed to deliver that materiel support. As the asset progresses through the four life cycle stages, the LCC of the asset will change, reducing or improving the effectiveness and efficiency of the support system. These changes in support costs, through OWSM, will lead to changes in the support arrangements through the remainder of the life cycle. OWSM must incorporate the risks associated to contracting out service support and the challenges associated with managing maintenance and support contracts in a theatre of operations.

MATERIEL ACQUISITION AND SUPPORT (MA&S)

BACKGROUND

31. The MA&S process is an integrated conception-to-disposal process that provides a common framework of policies and accountability in accordance with DAOD 3000-1. MA&S is the DND implementation of the LCMS, and transforms operational needs into the required equipment, support equipment, spares, supplies, training, technical publications, and facilities. These processes are managed by ADM(Mat), who is responsible for all activities associated with MA&S policy for DND and for CF. The role of the EMT is to take those definitive steps that maximize the benefits while mitigating the financial commitments and liabilities.

32. As part of its mandate, Director Materiel Acquisition and Support Programme (DMASP) is responsible for coordinating the development, production and promulgation of MA&S policies and instructions in support of ADM(Mat). DMASP is the Office of Primary Interest (OPI) for MA&S policy with respect to:

a. Systems Engineering (SE);

b. Project Management (PM);

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c. Integrated Logistics Support (ILS);

d. Configuration Management (CM);

e. Technical Data Management (TDM);

f. Systems Engineering Management (SEM);

g. Initial Provisioning Policy and Materiel Master Record Policy;

h. Life Cycle Materiel Management (LCMM); and

i. Procurement.

33. Although policy development is primarily a DMASP responsibility, DMASP cannot develop policy in isolation and relies on the active support of members of the MA&S Stakeholder Community (both within and external to ADM[Mat]). Defence Administrative Orders and Directives (DAODs) are the principal instrument to communicate departmental corporate administrative policy and to provide instruction on how to implement the policies. DAOD 3000-0 is the DND policy on MA&S and is available on the MA&S Desktop (to be renamed the MAT KNet in the near future). DAOD 3000-0 defines MA&S as, “the acquisition (excluding the identification of the requirement), support and disposal of the materiel component of a defence capability.”

MA&S MISSION STATEMENT

34. The purpose of MA&S is to provide materiel development, acquisition, in-service and disposal support in response to command and CF requirements, in the most cost effective and efficient manner possible.

MA&S CONCEPTS

35. The MA&S process is an integrated conception-to-disposal process that provides a common framework of policies and accountability by establishing:

a. a process owner;

b. a system where authority and accountability are vested in process ownership, as opposed to resource ownership, and applied consistently across organizational boundaries; and

c. a business approach that focuses on quantifying success through performance measures.

36. MA&S processes are broken down into three principal process areas: acquire materiel, support materiel, and dispose materiel. These process areas operate over six acquisition and support phases. The six MA&S phases incorporate both the DMS phases for project conception and capital acquisition and the LCM phases for in-service support and disposal. The level of effort associated with each process area and MA&S phase is illustrated in Figure 1-5.

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Figure 1-5 MA&S Process Areas and Phases

37. The MA&S processes – along with their functional inputs and products – are captured in the MA&S Process Model (see Figure 1-6). Each major process area is broken down into its component processes, inputs, and products. This functional decomposition continues through many levels, providing the various EMT members with a detailed representation of the global set of processes, inputs, and deliverables associated with the DND MA&S system. The MA&S Process Model is available on the MA&S Desktop (MAT KNet). The MA&S Process Model represents a valuable tool to assist EMT Leaders in understanding the complexity of asset management and in planning the work of the EMT.

38. As depicted in Figure 1-6, see MA&S Desktop (MAT KNet) for electronic version, the MA&S process receives inputs from operational staff and field units (via a “Recognised Service Need” or “Client Service Request”), which may range from a request for new equipment/systems to the provision of spare parts or technical advice relating to maintenance activities. From these requests, a variety of MA&S activities occur to service the needs of the user. The output is the provision of whatever services are requested from the customer (i.e. new or modified equipment or systems, or new/revised maintenance procedures). MA&S is not a set of static processes, but is a system in a constant state of change, searching for and implementing methods to:

a. Improve materiel support to operations;

b. Improve the efficiency of the acquisition process;

c. Optimize value for the money spent;

d. Apply the best commercial support practices;

e. Tailor support to individual weapons systems;

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Figure 1-6 MA&S Process Model (First Level Breakdown)

f. Introduce specific technologies into operational situations efficiently and on short notice;

g. Leverage simulation and modelling in areas such as acquisition, maintenance, programming and training;

h. Reduce inventories and the logistics support tail;

i. Employ support resources in non-traditional environments (e.g. Contractors in the Operational Theatre);

j. Employ integrated Equipment Management Teams;

k. Use the Prime Vendor Support throughout the life cycle of vehicle, vessel, aircraft and/or operating system’s employment (including monitoring GFE);

l. Optimal use of Commercial Off-The-Shelf (COTS) products;

m. Acquire and support fewer types of multi-role equipment;

n. Emphasize on extending life expectancies for capital equipment via modification, upgrading and refurbishment; and

o. Foster a close relationship between those specifying operational capability requirements and those with the knowledge of current capabilities and support requirements.

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MA&S RESOURCES

39. MA&S Desktop (to be renamed the MAT KNet in the near future). The MA&S Desktop (MAT KNet) is a web-based electronic reference utility and source of guidance, advice, tools and techniques to aid users in the accomplishment of their tasks. This repository is designed to be applicable to all MA&S projects, aiding users regardless of their role or background. Using documented best practices, examples and templates, EMT Leaders and members can readily benefit from the collective experience and knowledge base across DND. The MA&S Desktop (MAT KNet) contains:

a. Process details to allow DND users to interpret and implement the reform concepts contained in MA&S policy and the Acquisition Reform Guide (ARG);

b. Electronic links to reference source documents;

c. Formats, such as decision tools, techniques and templates; and

d. Contact OPIs (at NDHQ) for the various subject matter experts.

40. Acquisition Reform Guide. The DND Acquisition Reform Guide (2nd draft), dated February 1999, is a work-in-progress, identifying not only world-wide best practices in acquisition, but also how those practices can be incorporated into the mainstream DND/CF environment. It is available on the MA&S Desktop (MAT KNet).

EQUIPMENT MANAGEMENT TEAM

MATRIX MANAGEMENT

41. Matrix management is a concept used by EPMs. Often, departmental projects are of sufficient scope and complexity to require the support of functional specialists, but may not merit the assignment of dedicated project staff. Matrix management is the name given to the form of management in which functional authorities carry out their tasks in support of a project manager who is responsible for a project. For details, see the MA&S Desktop (MAT KNet) reference on matrix management on the MA&S Desktop (MAT KNet).

42. The use of the matrix management concept fosters the formation of virtual teams as it allows project OPIs to conduct their business across functional lines at the lowest level possible. In most instances, it eliminates the need to go up or down the chain of command. Matrix management is effective not only in support of projects but also in the conduct of day-to-day activities when there is a need to deal with personnel outside one’s own organization. Functional support in specialized disciplines such as engineering, supply management, procurement and Quality Assurance (QA) is available to all EMT Leaders through matrix management.

CONCEPT OF TOTAL EMTs

43. The nature and diversity of EMT organizational structures, as well as their activities, means that only a small element of the personnel and resources needed to achieve the EMT’s equipment management program are under the direct functional control of the EMT Leader. In fact, the EMT can and should include significant elements that are outside EPMs, ADM(Mat), DND, and even government (e.g. DQA, ECS requirements staffs, PWGSC, industry and allied forces). This has led to the concept of a Total EMT formed from two components:

a. A small Integral EMT that includes all those personnel (and resources) that are under direct functional control of the EMT Leader; and

b. An often much larger Virtual EMT that includes all matrix-managed personnel (and resources) linked to the EMT’s activities.

44. The dividing line between the Integral and Virtual components of the EMT will vary, and some EMT members – including the EMT Leader – may fulfil more than one set of responsibilities.

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INTEGRAL EMT

45. The Integral EMT has seven primary responsibilities:

a. Leadership

(1) The Integral EMT has management responsibility for the total EMT and its assigned equipment/ systems, including their capabilities, within the overall materiel planning and control framework. The EMT Leader is the key to MA&S process integration within the EMT and across the EMT’s plans and activities. Leadership includes:

(a) Addressing EMT business process inputs;

(b) Analysing EMT performance and implementing improvements;

(c) Analysing primary and support equipment/system performance and implementing improvements;

(d) Managing EMT personnel;

(e) Enhancing EMT process efficiency;

(f) Reporting and forecasting EMT activities; and

(g) Balancing and adjusting the EMT’s equipment management program.

(2) While processes can be imposed, effective and efficient execution of the equipment management program by all team members relies heavily on the EMT Leader’s ability to integrate the integral and virtual EMTs and extract the maximum effort from all members of the team. This can only be done by:

(a) Having a full knowledge of the team’s skill sets and capabilities;

(b) Addressing any limitations and shortfalls;

(c) Managing team activities and personnel through the sound application of human resource management principles; and

(d) Emphasising and improving communications.

b. Project Management. The EMT Leader is responsible for the application of project management processes and discipline throughout the equipment/system’s life cycle. It is expected that all major EMT activities (acquisition, support or change) will be managed as projects within an overall integrated equipment management program. While it will impact on all EMT members, project management expertise and coordination may be focussed in a designated EMT Project Manager (PM). Where individual elements of the equipment management program can proceed concurrently, numerous EMT members may be designated as PMs reporting to the EMT Leader as Program Manager. In the case of acquisition projects, the EMT will have expanded project management responsibilities because of the additional management and reporting requirements imposed by the DMS and Treasury Board for capital project management.

c. Equipment Support Management (ESM). ESM includes management of EMT technical support activities throughout an equipment/system’s life cycle. Equipment System Managers (ESMs) are normally designated at the lowest staff level that can achieve a broad overview of the technical support requirements of a fleet, system or equipment. The ESM Manager:

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(1) Leads the creation and execution of maintenance and inventory management concepts;

(2) Improves equipment support and associated processes;

(3) Develops weapon systems/equipment support plans;

(4) Manages weapon systems/equipment support subcommittees; and

(5) Manages CM and TDM activities.

Examples of other terms for the ESM Manager include Ammunition Commodity Manager (ACM), Class Manager, Fleet Manager, Technical Specialist, and LCMM.

d. System Engineering Management. This function is responsible for effectively applying system engineering processes and principles to EMT activities throughout the equipment’s life cycle. This may include acting as the DND design/engineering authority for both acquisition projects and in-service fleets. For major acquisition projects, these responsibilities become part of the system engineering component, and thus simplify transition to sustained system engineering management when transferred to the in-service phase. For in-service fleets this includes:

(1) Managing equipment modification projects;

(2) Performing interface/integration engineering and configuration management activities;

(3) Conducting or coordinating engineering investigations, testing and evaluation;

(4) Providing engineering advice as necessary;

(5) Establishing and conducting configuration management boards;

(6) Establishing and managing engineering management plans; and

(7) Establishing and managing specific engineering plans and activities related to equipment.

e. Supply/Inventory Management. This function is responsible for inventory management of all equipment and equipment support items throughout the life cycle. It may include:

(1) Initial cataloguing/provisioning, and follow-on reprovisioning;

(2) Coordinating transportation and distribution of materiel;

(3) Repair and overhaul support;

(4) Materiel authorization for centrally managed items; and

(5) Disposal management.

This responsibility normally includes those associated with the National Inventory Control Point (NICP).

f. Financial/Procurement Management. This function provides the point of contact between DND and PWGSC which is responsible for all procurement, including contracts for new acquisition, reprovisioning, repair and maintenance and direct with trade, as well as budget management and contract administration, It may include:

(1) Preparing procurement strategies in concert with the technical authority and PWGSC;

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(2) Preparing requisitions and reviewing all requirement documents to ensure completeness and contractibility;

(3) Monitoring, hastening deliverables and milestones;

(4) Certifying and processing payments;

(5) Providing guidance on government contracting regulations, internal and external review and approval processes and the EMT budget and cash management; and

(6) Preparing cost estimates, procurement milestones and procurement risk mitigation input to project decision documents.

VIRTUAL EMT

46. The Integral EMT requires a large matrix of additional personnel and resources to deliver equipment and equipment support capabilities. EMT Leaders and members must establish and maintain effective lines of communication between the directly controlled Integral EMT and the much larger matrix, called the Virtual EMT. This linkage can be defined through formal or informal agreements/contracts, specific project charters, or activity responsibility matrices. These clarify both the commitments and reporting relationships of Virtual EMT members to both the EMT Leader’s and the functional manager’s satisfaction. This liaison must be established early in the conception stage, and nurtured and maintained throughout the life cycle of the equipment capabilities assigned to the EMT. Key Virtual EMT members include:

a. Requirements Staffs (ECS Staff). These organisations define the capability requirement or deficiency and system performance characteristics. They also source and establish program funding and play a key role in the distribution and fielding of new equipment.

b. Quality Assurance (ADM[Mat]/DGEPS). This organization establishes QA policy applicable to both capital and in-service acquisition activities.

c. R&D (ADM[S&T]/DRDC). DRDC is an agency operating within the Department of National Defence and provides science and technology services to the Department and the Forces. As part of the virtual EMT, DRDC provides awareness of future technology and facilitates its insertion. As well as traditional R&D, DRDC can provide applied R&D support to technical, engineering and process reengineering investigations.

d. DND Specialists (Various). These may include equipment/product advisors (e.g. nuclear engineers, publication specialists). They also may be process advisors (e.g. DDSAL, DCIP, DCPS, ILS experts, test and evaluation specialists). Finally, they may also include other EMTs whose equipment links to the EMT’s equipment and equipment support capabilities.

e. Public Works and Government Services Canada (PWGSC). PWGSC is the government contracting agent and is tasked under the Defence Production Act with the exclusive authority to buy or otherwise acquire, utilize, store, transport, sell, exchange or otherwise dispose of defence supplies – unless these activities have been delegated to the Minister of National Defence. PWGSC must be involved when DND is seeking procurement information from industry.

f. Industry. Industry represents the source of the EMT’s equipment and equipment support capabilities through the provision of both goods and technical services.

g. Other Government Departments (OGDs). OGDs have a role in optimizing DND procurement value to Canada by using instruments such as industrial offsets for major offshore capital procurements. Also OGDs provide awareness of government programs and policies affecting DND procurements. Industry Canada and Department of Foreign Affairs and International Trade (DFAIT) are two key departments to consider.

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h. Allies. Allies are often a source of cooperative and shared development, acquisition, information, facilities and other support.

EMT ACTIVITIES

47. The sum of all EMT activities over the life cycle of materiel can be grouped into nine areas. In this section, each of these areas is discussed in some detail.

48. Technical and Specialist Advice, Information and Investigative Analysis. This provides expert advice, information and investigative analysis to EPM customers, other CF agencies, government departments, external agencies and contractors. The specific activities associated with this process are:

a. Technical Materiel Advice. This includes the conduct of technical studies and investigations to answer client queries and the provision of general consultations.

b. Operational Planning and Field Support. This includes the provision of consultation on the implementation of operational plans and missions related to the requirements, support, and allocation of CF materiel.

c. Speciality Technical Advice. This includes the provision of general consultation on Environmental Management, Configuration Management (CM), ILS, and human engineering related activities.

d. Advice on Training and Management of Technical Personnel. This includes the provision of advice on:

(1) Training requirements for CF personnel (i.e. operators and maintainers);

(2) Updates to trade-related courses, occupational speciality courses and specialized equipment courses; and

(3) The requirement for speciality qualifications, personnel skills development and staffing for deployment.

This activity may be required to distinguish between advice on military and civilian technical training and management requirements.

e. Advice to Operations on Costing and Budgeting. This includes the provision of input to operational budgets (i.e. the preparation of maintenance and supply support forecasts and the provision of general advice on maintenance and inventory support cost related to CF operations/deployment).

f. Acquisition Methods and Strategies. This includes the provision of advice on the strategies and management of procurements and contracts as well as project management methods.

g. Policies, Procedures and Instructions. This includes the provision of advice on materiel operation as it relates to practices, security and safety.

h. Supporting North Atlantic Treaty Organization (NATO) and Other Allies. This includes the provision of advice in support of, and participation in:

(1) NATO and other working groups;

(2) The development of Standardisation Agreements (STANAGs) and other NATO documents; and

(3) The preparation of responses to queries.

49. The process owner is ADM(Mat).

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50. New Capability Acquisition. The EMT manages the introduction of new operational capabilities to the CF by acquiring equipment and systems on behalf of operational staffs. The operational requirement for a materiel solution is provided in the Capability Initiatives Database (CID). The purpose of the CID is to serve as an information storehouse for capital projects and initiatives within DND and the CF. The CID is an important departmental tool for capability-based planning, which assists in the process of identifying capability deficiencies. Details of the CID are available on the VCDS web site.

51. The new capability acquisition process is initiated by providing advice that identifies equipment/system requirements to meet a specified capability deficiency. It also provides advice on the development of options leading to an approved solution. The major activity associated with this process is acquisition management whereby equipment/systems specifications and ILS requirements are defined, and the equipment/system and related ILS package are subsequently procured. The process concludes with the introduction of the new equipment or system into service, product acceptance and the hand-over of the new asset to operations.

52. The specific activities associated with this process are:

a. Technical and Specialist Advice. This includes conducting program planning studies and providing advice in support of the:

(1) Development of DMS documentation;

(2) Development of options leading to an approved solution;

(3) Evaluation of in-service operational requirements; and

(4) Evaluation of risk associated with the introduction of a new capability.

b. Acquisition Management. This includes the:

(1) Preparation of acquisition documents, including technical specifications; ILS support strategies, Logistics Support Analysis (LSA) set-up and other associated requirements; cost and deliverables breakdown schedules; procurement strategies (i.e. COTS versus mil-spec) and planning documents (budgets, forecasts); and, contractual requirements (specific terms and conditions related to deliverables, acceptance criteria).

(2) Provision and execution of a communications plan to inform the client and other agencies regarding project progress, expenditures and forecasts, operational requirements, and test and evaluation requirements.

(3) Management of all aspects of procurement including contract amendments, schedule and costs, identification and acceptance of deliverables, and the technical performance of the contractor.

(4) Conclusion of the acquisition which includes the provision of full status of acquisition performance; address status of systems, support strategies and associated operational requirements; and completion of all in-service transition activities.

c. Introduction of Equipment/System into Service. This includes the:

(1) Acceptance of equipment/systems, including the conduct or management of tests or trials.

(2) Acceptance of training packages, facilities, and documentation.

(3) Management of the physical delivery of assets including entitlements and equipment hand over, distribution of assets including simulators and test equipment, life cycle logistics support, training packages, facilities, and documentation (technical and others).

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(4) Management of the transition to operations, including life cycle support (for example, initial maintenance support); identification and management of deficiencies; development of workaround plans; provision of initial system support; and, conduct of initial training.


54. Modification Services. This process manages the required changes that maintain or enhance the operational capabilities or support arrangements of CF equipment and systems. The modification process is initiated with the provision of advice and consultation in order to identify and assess the requirements. The major effort associated with this process is modification management whereby changes to equipment/systems specifications and to logistic support requirements are defined, procurements are made, the equipment/system is modified and the required changes to the life cycle logistic support are implemented. This process concludes with the return of the equipment/system to operation following product acceptance.

55. The specific activities for this process are:

a. Technical and Specialist Advice. This includes the:

(1) Conduct of modification planning studies, including investigation and analysis of requirements, options, risks, schedule, cost and performance.

(2) Provision of advice in support of the development of DMS documentation, the Statement of Operational Requirement (SOR), options leading to an approved solution, the evaluation of in-service operational requirements, and the evaluation of risk associated with the introduction of a revised capability.

b. Modification Management. This includes the:

(1) Formulation of modification documentation, including: technical specifications and other related modification requirement descriptions; ILS/Logistics Support Analysis (LSA) and CM changes, and other associated requirements; cost and deliverable breakdown schedules; modification strategy and planning documents (budgets, forecasts); procurement strategy; contractual requirements (specific terms and conditions as related to deliverables, acceptance criteria, etc.); and project management.

(2) Provision and execution of a communications plan to inform the client and other required agencies regarding details such as progress, forecasts, operational requirements, test and evaluation, and trial requirements.

(3) Management of all aspects of the modification, including contract amendments; schedule and costs; deliverables and procurement; contractor performance; and interfaces with field units and environmental staffs.

(4) Project close-out including provision of full status of modification performance, address status of systems, support strategies and associated operational requirements, and finalise all hand over to operations.

c. Return of Equipment/System into Service. This includes the:

(1) Identification and acceptance of equipment/systems, including the conduct or management of tests and trials, acceptance of training packages, facilities and documentation.

(2) Management of the physical delivery of assets, including: equipment hand over; distribution of assets; delivery of life cycle logistics support; training; facilities; and test equipment.

(3) Management of transition to operations, including: life cycle support (e.g. initial maintenance support); identification and management of deficiencies; development of workaround plans; provision of initial system support; and, conduct of initial training.

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57. Supply and Inventory Management. This process ensures the availability of CF stocked items for operational use or the support of equipment. The specific activities for this process include:

a. Technical and Specialist Advice. This includes:

(1) Input on inventory support (including required quantities and costs) to operational budgets.

(2) Advice on the effect of changes to inventory policies and procedures (including base/unit level), the handling and storage of stocked items, usage rates and trend analysis, related operations personnel resource requirements, the environmental impact as related to the handling, storage and transportation of spares and consumables, and the provision of inventory strategies, policies, plans and procedures, including best practices.

b. Inventory Management. This includes the:

(1) Provision and implementation of inventory strategies; policies; plans and procedures including best practices for the effective sustenance of nationally controlled stock items.

(2) Introduction of assets (identified through the initial provisioning process).

(3) Control of part change management, including new parts to be stocked in the supply system; processing of materiel authorization and materiel accounting/control.

(4) Management of reprocurement contracts.

(5) Management of nationally controlled inventory assets including asset procurement and assets held at contractor facilities.

c. Ammunition Warehousing and Inspection. This includes the:

(1) Provision and implementation of strategies, policies, plans and procedures related to ammunition management, including inspection, handling, storage, safety, environmental concerns and transportation.

(2) Management of stocks and supply to meet client requirements, including reprocurement, and repair at the 2nd, 3rd, and 4th lines.

(3) Management of related warehousing facilities.


59. Maintenance. This process supports the maintenance requirements of CF materiel, establishes the procedures used in maintenance functions, provides limited in-house 3rd/4th-line maintenance; and manages contractor support to supplement in-house capabilities. Most maintenance planning is performed under the initial acquisition strategy. Consideration may also have to be given to scheduling for combat.

60. The specific activities of this process are:

a. Technical and Specialist Advice. This includes the:

(1) Performance of technical investigations.

(2) Provision of advice on concept of supports and procedures (e.g. work plans, inspections, repair schedules, Repairable Materiel Requests [RMRs]); configuration changes of equipment and systems; and results of life expectancy studies in support of client operations.

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b. Concept of supports and Procedures. This includes the:

(1) Development of procedures for preventive and corrective maintenance tasks and repair techniques.

(2) Provision of maintenance plans, policies and procedures (i.e. defining lines and levels of maintenance), repair schedules, equipment maintenance procedures; and requirements for contractor and in-house maintenance.

(3) Provision of resource requirements, facilities, tools, training, documentation and test equipment.

c. Maintenance Management. This includes the:

(1) Management of support contracts for the maintenance of assets, including 3rd/4th-line repairs and overhauls, Mobile Repair Party (MRP) support, ship refits, contractor assistance, Technical Engineering and Maintenance Services (TEMS) contracts, and acceptance of contract deliverables (for the customer).

(2) Coordination of deficiency reports (e.g. Unsatisfactory Condition Reports [UCRs]).

(3) Performance of in-house maintenance (including the provision of 3rd/4th level maintenance of equipment at ADM[Mat] field units). This includes major repairs and overhauls, assistance in 1st/2nd line maintenance operations, the provision of resources in support of operations (i.e. while on deployment) and of materiel recovery operations, and the provision of 2nd/3rd line maintenance for ammunition (e.g. maintenance of torpedoes).

(4) Management of maintenance documentation, including technical specifications and other related documents and descriptions, ILS/LSA changes, and other associated requirements such as parts substitution.


62. Disposal. This process manages the removal of equipment and systems as well as all associated supporting assets from the CF inventory.

63. At some point, it will be determined that the asset is no longer the most cost-effective means to address the CF’s requirement. When this point is reached, the EMT’s final task is to “clear out the warehouse”. This involves the removal of not only the equipment itself, but also all supporting materiel associated with the equipment, including test equipment, documentation, training materials, excess inventory, etc. The storage of surplus materiel inflicts a cost burden on DND that the effective and efficient application of LCMM should remove.

64. In this phase, the EMT Leader must consider all possible options for disposal including:

a. Identifying alternate uses for the equipment either internally to the CF, within DND, or within another government department;

b. Determining whether or not the equipment can be modified to suit a new role;

c. Identifying resale opportunities that take into account the economic value and any legal considerations (e.g. International Traffic in Arms Regulations [ITARs], HAZMAT); and

d. Establishing the most environmentally friendly method of recycling or disposal and what costs are involved.

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a. Technical and Specialist Advice. This includes:

(1) The investigation and provision of advice on disposal options for CF materiel, including quantities of equipment to be disposed of, NATO commitments, museums, and the most effective and economical disposal methods.

(2) Assistance in the preparation of customer disposal plans.

(3) The provision of advice on the budgetary implications of the cost to dispose and any cost recovery from sale of assets.

(4) The provision of assistance to operational and logistics staffs (e.g. warehousing and transportation) on the peculiarity of CF materiel (e.g. safety, hazardous material).

b. Disposal Management. This includes the:

(1) Development of disposal plans, including the identification of equipment and related assets to be disposed of, all related support assets, technical data, documentation, and simulators.

(2) Implementation of the physical disposal of assets.

(3) Provision of assistance to customers in disposing of base/unit/command assets.

(4) Management of contracts related to disposal.


67. Research and Development (R&D). This process provides defence science and technology leadership to ensure that the CF of the future remains technologically prepared and relevant. The current defence environment includes an increased focus on interoperability with allies, technology-driven warfare and new “asymmetric” threats. This is captured in the Technology Investment Strategy (TIS) prepared by ADM(S&T).

68. The TIS is based on 21 R&D activities that span the defence technology spectrum, including sensors and information systems, combat systems and human systems, as well as MA&S and systems concepts.


a. Command and Control Information Systems (C2IS) Performance and Experimentation. This addresses new approaches, frameworks and architectures to manage the evolution of information systems for Command and Control (C2) applications.

b. Information and Knowledge Management (IKM). This supports the knowledge creation process while ensuring effective collection and sharing of that knowledge. Information Management is a distributed process that includes transforming, classifying, indexing and linking data elements in context for exploitation. Knowledge management is a collaborative and integrated approach to the creation, capture, organization, access and use of an enterprise’s intellectual assets.

c. Communications. This addresses the robust and seamless movement of information between a source and one or more recipients to support effective command and control.

d. Human Factors Engineering (HFE) and Decision Support Systems (DSS). This addresses system readiness and performance by achieving compatibility among people, their equipment, machines and working environments to ensure effectiveness, safety and ease of use.

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e. Command Effectiveness and Behaviour. This research domain encompasses all of those behavioural factors that affect the ability of military personnel to perform in cognitively and emotionally challenging situations.

f. Autonomous Intelligent Systems. These represent automated or robotic systems that operate and interact in the complex unstructured environment of the future battlespace.

g. Sensing (Air and Surface). Sensing is carried out to detect, recognise, locate and monitor all targets and features of interest (including our own assets) within a specified area.

h. Underwater Sensing and Countermeasures. This activity combines aspects of R&D in sensors and actuators, assessment of the undersea environment and data fusion that contribute to situational awareness and targeting in Underwater Warfare (UWW), including Anti-Submarine Warfare (ASW), Torpedo Defence (TD) and Mine Countermeasures (MCM).

i. Space Systems. This includes the development of concepts, technology, components, systems and data exploitation capabilities to support surveillance of space from both ground and space-based sensors; surveillance from space, which includes remote sensing, multi-source intelligence collection, and moving-target detection and tracking and early warning and defences.

j. Electro-Optical (EO) Warfare. EO Warfare is aimed at denying adversaries the use of the EO spectrum while protecting its use by friendly forces, with the overall objective of increasing the self-defence capabilities of CF platforms in all military operations.

k. Radio Frequency (RF) Electronic Warfare (EW). EW achieves electromagnetic spectrum dominance through:

(1) Electronic Support Measures (ESM) to intercept, identify, and locate sources of electromagnetic energy;

(2) Electronic Countermeasures (ECM) to prevent, hinder or degrade an opponent’s effective use of the electromagnetic spectrum; and

(3) Electronic Protection Measures (EPM) to protect personnel and equipment from attacks by EW systems and RF weapons that degrade or destroy combat capability.

l. Network Information Operations (IO). This addresses the defensive and offensive measures that may be applied to digital information networks, including their component equipment, software and data.

m. Precision Weapons. This provides the capability of accurately, reliably, and rapidly engaging (high-value) targets from short and long stand-off distances while at the same time minimising collateral damage.

n. Weapons Performance and Countermeasures. This focuses on the phenomena that take place when a weapon interacts with a target.

o. Emerging Materials and Biotechnology. This activity reflects the increasing importance of advanced or novel materials (both organic and inorganic) to military and civilian systems.

p. Signature Management. This addresses an ensemble of technologies related to the reduction of detectable emissions and fields (signatures) and the management of the risk of detection, classification and targeting of assets by opposing forces.

q. Plant Performance and Life Cycle Management (LCM). This activity involves the enhancement of performance, safety and LCM of military platforms.

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r. Multi-Environment Life Support Technologies (LST). LST sustains or enhances the effectiveness and

individual protection of personnel operating from specialized combat platforms/systems, such as aircrew, submariners and divers, or soldiers operating in harsh environments.

s. Operational Medicine. This addresses the knowledge, procedures and material needed to maintain physical and psychological health, to preserve operational capacity, and to facilitate the early return to duty of affected military personnel.

t. Chemical, Biological, Radiological (CBR) Hazard Assessment, Identification and Protection. CBR defence involves the detection, identification, protection and consequence management of the CBRD threat agent spectrum.

u. Simulation and Modelling for Acquisition, Requirements, Rehearsal and Training (SMARRT). SMARRT is concerned with MA&S for future force concepts; modern, affordable acquisition; and effective training and rehearsal of the future force.

70. The process owner is ADM(S&T).

71. Logistics Planning and Operational Coordination. This process involves the logistical preparation, planning and support coordination for military operations.


a. Logistics Preparation. This includes those activities that develop concepts, doctrine and agreements, and analyse processes to be used in planning and supporting logistics operations.

b. Logistics Planning. This is the process of preparing for the movement and maintenance of forces. It covers both deliberate and reactive planning, and includes the development of support concepts for specific operations, the allocation of support resources, and the establishment of priorities. Aspects of logistics planning include acquisition, storage, distribution, maintenance, movement and disposition of materiel, movement and evacuation of personnel, and facilities management.

c. Logistics Operational Support. This is the coordination of the application of resources, in accordance with operational priority, in order to achieve the commander’s plan. This support includes the process of communicating with military forces involved in operations, changing logistics priorities, monitoring day-to-day activity of logistics operations, coordinating improvements, solving problems and reporting to designated authorities.

73. The process owner is J4 Mat/DG Log.

74. Materiel and Transportation Management Process. This involves the planning, organising and controlling of the provision of materiel support, including food services, required by DND or by an agency. This includes the determination of requirements, cataloguing, acquisition, distribution, storage, maintenance and preparation of materiel, and acquisition of related services.

75. The specific activities for this process are:

a. Supply Management. This is the provision and distribution of items of supply to a user to satisfy stated requirements. The function also includes the provision of advice, guidance, policy and management tools in support of the initial determination of the requirements (as to kind and specifications), standardisation, adoption, modification, procurement, acceptance, receipt, storage, inspection, issue, disposal, accountability, responsibility and stock control of items for distribution.

b. Warehousing. The performance of those physical and administrative functions incidental to and required for the conduct of the storage activity (i.e. receipt, sorting, identification, inspection, preservation, packaging, hazardous material handling, putting away, safe keeping, retrieval for issue, and preparation for shipment of material).

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c. Food Services Management. The provision of advice, guidance, policy and management tools in

support of operational and static food services operations. This function also includes the provision of support to the modification and renovation of existing food services facilities, replacement of food services equipment, construction of new facilities, the combat ration program, food standards, and performance measurement.

d. Materiel Traffic Management. The delivery of goods in a serviceable condition, at the place and date designated by the consignee, in a safe and cost-effective manner. Materiel traffic management includes the development, promulgation and monitoring of policies for the movement of DND-owned materiel, personal baggage, clearance of DND-owned goods and privately owned property through Canada Customs and the carriage of dangerous goods by all modes of transport. It also includes the development and implementation of management decision-support systems for use at all levels to manage the ongoing investment made in materiel traffic management activities.

e. Mobile Support Equipment (MSE) Fleet Operations Management. This encompasses the effective operation, management and employment of the CF’s MSE fleet, including administration of the CF’s military and Privately Owned Motor Vehicle (POMV) safety program. It also includes the development, promulgation and implementation of policies to meet departmental and central government agency requirements, and the development and implementation of corporate-level decision-support systems for use at all levels to manage the ongoing investment in support transport fleets and associated resources.

f. Postal Services. This process is the direct support of troops on operations, and involves the management of Post Offices including financial accountability, the process of receiving and dispatching personal and official mail, and the over-the-counter provision of all facets of mail services. It also includes the ability to plan, coordinate and implement mail movement activities with national and international postal agencies, including allied forces postal authorities.

76. The process owner is J4 Mat/DG Log.

EMT LEADER

77. The EMT Leader must effectively lead personnel of diverse backgrounds, knowledge, and skills toward achieving the best possible design and delivery of an integrated equipment management program of activities. To accomplish this, the EMT Leader must have a thorough understanding of the EMT’s allocated resources, computer-based tools, directives and processes available to execute both the assigned and the implied responsibilities of the position.

78. EMT Leader activities interface with numerous sub-processes and equipment programs that form a major part of the MA&S system. The overall defence program (via the DMS and the DPG) provide both the EPMs (through ADM[Mat]) and the other capability components with objectives, roles, and resources that are further defined within their business plans. For both capital equipment acquisitions and in-service equipment support capabilities, EPMs receive their assigned resources and guidance from the DMS. EPMs in turn provide support to their respective environments and their associated equipment support organisations. The environmental chiefs in turn use these EPM-managed inputs, in concert with their assigned resources, to deliver specific CF/DND capabilities as defined in their business plans. An EMT within an EPM is focussed on sustaining, improving or replacing a defined subset of overall EPM equipment and equipment support capabilities.

79. The EMT Leader is therefore an individual who leads a multi-skilled team of MA&S specialists by developing, coordinating and using all the assigned resources, knowledge, and skills to ensure the efficient and effective performance of EMT activities. The EMT Leader also has the primary responsibility to link the team’s efforts to higher-level program management and resource control processes. This means the leader must know external program requirements and directives, and link the EMT resource needs and efforts (planned/expended) into the appropriate program elements in accordance with the approved business plan. The task involves the provision of the necessary support outputs as well as adjusting the EMT’s equipment program to conform to higher-level guidance and inputs. For these reasons, the EMT Leader usually operates above managing a single project or fleet, and must assess and balance plans, objectives, results and resources across numerous projects and equipment within an integrated equipment management program.

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DEFENCE MANAGEMENT SYSTEM (DMS) OVERVIEW

GENERAL

80. The DMS is a comprehensive and iterative departmental management process. It plans, organises, implements and controls the departmental activities and resources to produce operational capability, to conduct operations and to provide reports to government. The DMS provides:

a. A linkage between defence policy and departmental planning;

b. An overall strategic resource management framework;

c. A department-wide process for performance measurement; and

d. A detailed framework for reporting to government.

81. The overall DMS is described in Figure 1-7.

Figure 1-7 DMS Overview

82. The DMS is one of the departmental systems under which materiel management is carried out. The DMS also sustains capabilities, and facilitates the changes necessary to achieve departmental objectives. It identifies what is required to meet government policy, enables the allocation of assigned resources and oversees effective and efficient change.

83. The list of approved defence requirements and the resources assigned to meet those requirements is known as the Defence Services Program (DSP). The DSP is the approved departmental program that defines and reflects all the planned activities of DND, along with the assignment of resources to those activities. The effectiveness and efficiency of fulfilling the DSP is measured by a formal Performance Measurement activity. This document is updated annually by DGSP/DFPPC 6.

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84. The DMS manual is available on the MA&S Desktop (MAT KNet).

DEFENCE PLANNING GUIDANCE (DPG)

85. The DPG is issued on an annual basis under the joint signature of the Deputy Minister (DM) and CDS to provide strategic direction and define resource levels to Level One Managers (including ADM[Mat]) in order to assist them in the development of their Business Plans. The DPG provides the DM and CDS the opportunity to articulate a joint perspective on the Department and the Canadian Forces in terms of current challenges and priorities. It further:

a. Communicates the Department’s vision and articulates the broad defence missions derived from the Defence White Paper and other defence policy sources.

b. Defines the resource levels for the forthcoming five-year planning timeframe.

c. Establishes the performance measurement framework to be used for the coming review period.

86. The DPG seeks to direct and guide Level One Managers toward the creation of an affordable and properly balanced DSP which links the DND missions, resources and expectations. The DPG document is available in electronic form.

BUSINESS PLANNING

87. In January 1995, the Federal Government introduced an Expenditure Management System (EMS) that emphasises improving program delivery by reallocating resources within Departments and across government programs. As a result of the introduction of the EMS, government departments and agencies must submit annual business plans and subsequently report on their annual performance. The business plan is a concise statement of how a subordinate organization contributes to DND’s objectives within existing financial constraints. Each plan states how the missions, objectives and key results achieve the goals directed in the DPG. The business planning process comprises three essential components:

a. Approved defence planning guidance, upon which the department bases in-year and future year changes;

b. A set of agreed principles and processes; and

c. A performance measurement and reporting process based on the Treasury Board approved Planning, Reporting and Accountability Structure (PRAS).

88. The business plan is a vehicle to de-centralized financial management and control by devolving authority to Directors, EMT Leaders and managers. Business planning provides the basis for making resource trade-offs and is the vehicle for ensuring balance among the many competing demands. This authority enables decisions concerning reallocation of resources to be made at the lowest possible level.

89. There are five levels of business planning:

a. Departmental Level (DND) – Level 0;

b. ADM(Mat) – Level 1;

c. Divisions – Level 2;

d. Directors/Managers – Level 3; and

e. EMT Leaders Section Heads / Project Managers – Level 4.

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90. Related activities by ESMs may constitute a 5th level.

91. The Level One plan establishes a delivery contract between a Level One Manager and the CDS and DM. The business plans from each of the Level One Managers are collated to produce the DND business plan. The DND business plan is managed through Capability Component (CC) accounts. This is a code of accounts used for financial management. Figure 1-8 shows the CCs currently in use.

CC1 Maritime Forces CC6 Personnel Services

CC2 Land Forces CC7A Materiel Services

CC3 Air Forces CC7B Infrastructure and Environmental Functions

CC4A Joint Operations, Intelligence, Security, Construction Engineering

CC8A Financial and Corporate Services

CC4B North American Air Defence CC8B Policy and Communications Functions

CC4C CF Northern Area (CFNA) CC8C VCDS Group

CC5 Information Services CC8D Chief of Review Service

Figure 1-8 DND Capability Components

92. Business plans have a five-year planning horizon. Within this time frame, the current years’ plan is the most precise since the capabilities/tasks/products, resource allocation and performance expectations are well known and understood. However, as the activities approach the five-year horizon, the business plan will become less precise. Business plans are updated as new information is received. Consequently, there will be seldom, if ever, a requirement to completely rewrite a business plan. There are really only two key external influences that should lead to updating a business plan:

a. The issuance of revised output requirements which could be included in a new DPG or announced in a VCDS call letter; or,

b. A change in resource levels which would be manifested through the budget process.

93. Business planning provides the framework for greater delegation. Its principles include greater flexibility, quantifiable standards, and the freedom of action to consider alternatives and make trade-offs while retaining the benefits of those decisions.

DEFENCE SERVICES PROGRAM (DSP)

94. General. The DSP is the total of all departmentally approved activities and projects (including the resource allocations) that are deemed necessary to the delivery of affordable and effective defence services to the Government and to Canadians. The DSP covers a wide range of activities including, but not limited to:

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a. Defining those military activities required to meet defence objectives;

b. Determining the capabilities required by the CF to meet its defence roles, objectives, tasks and commitments (present and future);

c. Planning the changes needed to improve the CF and to enable it to meet the required levels of capability; and

d. Allocating the resources (including funds, personnel and materiel) necessary to achieve the program goals and objectives.

95. The Capital Program. A major component of the DSP is the Capital Program. Within the DMS, resource expenditures are carried out via a departmental business plan and the implementation of capital projects. While the departmental business plan is used to manage overall expenditures, capital projects are used to acquire new capabilities. They are defined in terms of scope, funding level, and capability component. These projects are initiated when ECS staff identifies a significant capability requirement and are managed in accordance with the DMS approval process and a formal project management methodology. Because of its importance within the DSP, there must be particular attention to the management issues and the decision-making process applicable to the Capital Program.

96. The capital are managed under the DMS in five phases. These are:

a. Problem Identification. The critical military capabilities are identified, described and analysed.

b. Options Analysis. Alternative ways of providing the required military capabilities are examined.

c. Definition. The specific equipment and system requirements are described in detail, with specific attention to cost and schedule factors.

d. Implementation. The identified military capabilities (in terms of operating systems, equipment, personnel and support) are acquired.

e. Close Out. Those activities directed at dismantling the project structure and preparation of the required reports.

97. EMT Leaders play a major role in the conduct of capital projects. EMT Leaders not only support capital projects in the role of Project Managers, but they also support formally established PMOs. Members of the EMT can also expect to be involved extensively with capital projects, whether in a leadership role or as EMT specialists.

98. Capital Program Components. The vehicle that describes all capital projects and seeks their approval is the Strategic Capabilities Investment Plan (SCIP). This document provides a detailed linkage between the capital projects and the DND strategic objectives. An annex to the SCIP is the Long Term Capital Plan (LTCP). This document is submitted to Treasury Board annually, concurrent with the Departmental Business Plan. Provisions are available to consider projects outside of the normal once-a-year timeframe (referred to as “out-of-cycle”), and these are discussed in detail in the DMS Manual.

99. There are four basic components to the Capital Program. They are:

a. Capital Equipment;

b. Capital Construction;

c. Miscellaneous Requirement (MR); and

d. Other Capital.

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100. Capital Equipment. Capital Equipment is the largest component of the Capital Program and covers all equipment, materiel and/or service projects valued at more than $5 M for the life extension (beyond one year) of existing assets and for the enhancement of capabilities of existing assets. Capital equipment projects are funded from a corporate account entrusted to ADM(Mat) as the departmental custodian. This account is divided into two categories:

a. Strategic Capital is the aggregate of all capital equipment projects having individual values of $100 M or more, or which have been specifically designated as strategic by Program Management Board (PMB) as a result of their significant risk or importance.

b. Non-Strategic Capital is the aggregate of all capital equipment projects having an individual value greater than $5 M and less than $100 M or which have been specifically designated non-strategic by PMB as a result of their low risk or importance.

101. Capital Construction. Capital construction covers all projects addressing new construction, capital leases and recapitalization of existing assets. ADM(IE) reviews the overall construction program proposed by Level One Managers from a corporate strategic perspective and prepares a consolidated construction program for reporting purposes.

102. ADM(IE) directly manages centrally funded construction projects while Level One Managers are responsible for all other construction projects. In the case of sensitive construction projects or activities where there is likely significant public interest, ADM(IE) is responsible for the coordination of communications strategies.

103. Miscellaneous Requirements. A Miscellaneous Requirement (MR) is defined as a project for the one-time acquisition of new equipment, materiel and/or services where the total project value does not exceed $5 M or for the recurring acquisition of replacement equipment and materiel where the individual item value does not exceed $1 M.

104. Further conditions that apply to MR projects are:

a. They do not significantly increase demand on Personnel, Operations and Maintenance (PO&M);

b. They have no associated project management costs; and

c. They have no associated project definition/development costs.

105. MR projects are funded by the sponsoring Level One Manager in accordance with the resource levels identified in the DPG. Level One Managers can vary their MR account funding by transferring funds from other sources in accordance with accepted guidelines as issued by ADM(Fin CS).

106. Other Capital. Other Capital covers all other projects and activities using capital funding in support of specific DND agencies, the corporate investment funds and the special capital reserves.

107. Long Term Capital Plans (LTCP). The Departmental LTCP describes the content of the Capital Program and links it to the achievement of the defence outcomes and policy. Ideally, only one Departmental LTCP would be submitted to Treasury Board. However, to accommodate time constraints and to facilitate processing by central Government agencies, the Departmental LTCP is submitted in three separate parts:

a. LTCP(E) aggregates all equipment capital projects.

b. LTCP(IM) aggregates all information management capital projects.

c. LTCP(C) aggregates all construction (infrastructure) capital projects.

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108. Since construction projects have a seasonally sensitive schedule that must be respected, this group of projects is normally sent to government in a stand-alone Long Term Capital Plan – Construction LTCP(C) submission. The LTCP(E) and LTCP(IM) are submitted under the same cover to the Government in the June timeframe, concurrent with the Departmental Business Plan.

PERFORMANCE MEASUREMENT

109. Performance measurement is the process of assessing DND’s progress toward achieving its specified defence objectives. It includes:

a. Information on the efficiency with which resources are transformed into outputs (capabilities and support services) by the Level One Managers;

b. The quality of those outputs (how well they are delivered and the extent to which the objectives are satisfied) and the outcomes (the result of output activities compared to their intended purpose); and

c. The effectiveness of operations in terms of their specific contributions to objectives.

110. There are three broad elements in the performance measurement framework: measures, indicators and standards:

a. Measures are attributes that must be analysed to determine whether the expected results are being achieved;

b. Indicators are aspects of the measures that are to be assessed; and

c. Standards are the quantitative targets or qualitative goals to be achieved.

111. Measures, indicators and standards are established at all levels so that performance can be planned for and evaluated across the depth and breadth of the organization. A high level of detail is not required for every successive level of management. In order for performance measurement to remain manageable, Level One Managers must establish meaningful indicators and standards for each measure against which the effectiveness and efficiency of subordinate levels can be assessed.

112. The basis of performance measurement at DND is the Planning, Reporting, and Accountability Structure (PRAS) and the Performance Measurement Framework promulgated by the VCDS.

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PART 2

PROJECT AND RESOURCE MANAGEMENT

INTRODUCTION

GENERAL

1. An integrated equipment management program is a complex and interwoven collection of activities and resources. These activities and resources must work together in a coherent and integrated way to deliver effective and efficient equipment delivery, support, and disposal. It is the function of the EMT to manage the activities and resources associated with DND materiel in such a way as to meet operational requirements while optimizing the overall LCC of the materiel. The rationale for using a project-centred approach (incorporating both project management and resource management) is to ensure that approved activities are carried out in a disciplined and logically planned manner.

2. EMT Leaders can expect to be appointed PMs of capital projects, to supervise capital projects managed by EMT members, and, lastly, to manage most EMT activities and resources on a project management basis. It has long been recognized that special skills and knowledge are required to complete projects successfully. This requires the EMT, and especially the EMT Leader, to be knowledgeable of project management and also to be capable of applying project management principles in the routine operation of the EMT.

3. Within DND, projects are managed in one of three ways:

a. Dedicated Teams – Major Crown and Major High Risk Projects: participation of Directorate/EMT/matrix support;

b. Small Dedicated Teams – Major Projects: supported by EMT and Matrix Staff Expertise; and

c. Virtual Project Teams – composed of a dedicated PM who is supplemented by EMT and matrix staff expertise.

4. With a limited number of DND and CF personnel available, all project teams will rely on contracted resources to deliver services and provide specialist support.

PURPOSE

5. The purpose of this part is to provide an overview of project management principles (including the management of project resources) and to provide guidance on their application to the EMT.

DEFINITIONS

6. The primary reference for Project Management within DND is “The Guide to the Project Management Body of Knowledge (PMBOK)” published by the Project Management Institute (PMI). This document is available through the MA&S Desktop (to be renamed the MAT KNet in the near future).

7. Project. A project is defined as “a temporary endeavour undertaken to create a unique product or service.” A Project exists only for the duration of time necessary to complete the stated objectives (PMBOK).

8. Any work activity can be managed as a project. Within the Maritime community, this takes the form of recurring and non-recurring projects, while in the Air and Land elements, only the non-recurring form is used. For details on the Maritime distinctions, refer to the DGMEPM Business Rules, which can be found on the DMMS intranet web site.

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9. Project Management. Project Management is defined as “the application of knowledge, skills, tools, and techniques to project activities to meet project requirements” (PMBOK). With the proper approach, most of the substantive work carried out by an EMT can be managed using project management. Only a few repetitive functions, such as recurrent performance monitoring, are excluded by the definition of what constitutes a project.

10. Program/Portfolio. A Program (or Portfolio) is a group of projects managed in a coordinated way in order to obtain benefits not available by managing them individually. The distinction between the two terms is based on who is coordinating the various projects. Program management in the DND context refers to the management, by ECS staff, of coordinated projects to achieve a set of capabilities not achievable without this coordinated approach. A set of projects managed in a coordinated fashion by the implementation agency (usually ADM[Mat]) is referred to as a portfolio. A portfolio manager (possibly a project manager for one or more of the projects in the portfolio) may be appointed to coordinate the projects. Since multiple projects are involved (and each project is uniquely funded and defined), a program control mechanism is necessary to address various project interface conflicts. This is significant when changes to the scope or funding of individual projects are required. To resolve these types of conflicts, PMB authority is required, through the Senior Review Board (SRB). For details on the PMB, refer to the DMS Manual, Chapter 2, Section 3.

APPLICATION OF PROJECT MANAGEMENT

11. The application of project management techniques requires that an initial investment of time and resources be made in planning the activity prior to the commencement of work. This is required to establish specific project objectives, prepare adequately detailed plans for their achievement, prepare the necessary documentation and issue assignments. Project management gives new life to an old axiom “Plan the Work and Work the Plan.” This preliminary investment has several purposes:

a. It ensures that there is a common understanding of the specific objectives for the project and a plan is developed to achieve these objectives.

b. Risks, costs, work assignments, deliverables and schedules are identified.

c. Formal project approvals are granted with a clear understanding of the level of effort, time and cost necessary to achieve the objectives.

12. Once formal approval is granted, progress is monitored through processes that present a clear picture of how a project is proceeding compared to the initial plan. There are two levels of monitoring that are important for the EMT. The first is the Earned Value monitoring that indicates when milestones are met. For an explanation of Earned Value Management, refer to the Canadian General Standards Board (CGSB) Project Performance Management Standard (PPMS) available at the PWGSC web site. The second is the quarterly BMT reviews that track budget expenditures across the EPM. New information and changes affecting the project are analysed for their effect on the original objectives and the project plan. These reviews provide portfolio/program managers with the ability to intervene in a timely manner when variations begin to occur.

13. By employing project management techniques, work assignments are generally performed more efficiently and effectively. They are more efficient because each assignment is focused on a single piece of the overall project and not the overall project. It is also more effective because each work assignment is well coordinated with all the other work assignments to produce the desired results. Figure 2-1 presents a list of the benefits of adopting project management practices to manage EMT activities.

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Figure 2-1 Advantages and Benefits of Project Management for the EMT Leader

RESPONSIBILITIES OF THE EMT LEADER

14. It is not uncommon for the EMT to fill two roles. On one side, the EMT is responsible for the in-service support of equipment, but on the other the EMT can be actively involved (and possibly leading) the replacement project for that capability. This means the EMT Leader, as a PM, must fully understand the responsibilities associated with the position and be familiar with the management and coordination activities necessary to complete the project. The EMT Leader must have knowledge of:

a. The sequence of events the project should follow;

b. Project-related tasks to be managed;

c. Roles and responsibilities of all project participants;

d. Any associated policy;

e. Procedural obligations or restrictions that may apply to the project;

f. The extent of his/her authority; and

g. The related interfaces / reporting procedures to be established and maintained with the group/EPM.

15. Other related responsibilities associated with being a PM include:

a. Providing technical assistance to the Sponsor who normally provides a Project Director;

b. Defining project scope, deliverables and milestones;

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c. Determining resource requirements;

d. Developing project approval documentation (e.g. Business Case, Project Charter) and processing for approval;

e. Co-coordinating the planning activities required for project implementation including project coordination, procurement, engineering, integrated logistics support, comptrollership, etc.;

f. Managing allocated financial resources;

g. Initiating contracts;

h. Reporting on the implementation of the project;

i. Maintaining project momentum;

j. Managing the implementation of the project;

k. Assuming total responsibility for the project’s performance, cost and schedule;

l. Accepting and/or co-coordinating the acceptance of deliverables; and

m. Performing project close-out activities, including:

(1) The return of any Government Furnished Equipment (GFE);

(2) The identification of any recurring National Inventory Control Point (NICP) and maintenance activities funded by NDHQ; and

(3) The processing of project closure documents.

16. For a more detailed description of the roles an EMT Leader might fill with respect to capital projects, refer to paragraphs 39. to 46., Roles and Relationships. For a similar description with respect to the in-service role of the EMT Leader, refer to paragraphs 89. to 112.

PROJECT AND RESOURCE MANAGEMENT PRINCIPLES

INTRODUCTION

17. This section provides information on general project and resource management principles that will help the EMT design and manage activities as projects both within the EMT and in partnership with other organisations in and around the Division. There is a great body of literature on project management and EMT members are encouraged to expand their knowledge of project management and to apply that knowledge to their day-to-day work. Throughout industry and government, there is a growing commitment to managing work by projects.

THE PROJECT LIFE CYCLE

18. Generally, organisations performing projects usually divide each project into a number of phases to provide management control. The phase sequences defined by most project life cycles generally involve some form of hand-off, such as from requirements to design, or from production to operation. Collectively, these project phases are known as the project life cycle. Although many project life cycles have similar phase names with similar deliverables, few are identical. For the purposes of the EMT Handbook, we use the life cycle and project phases employed within the DMS. Refer to Chapter 7 of the DMS Manual for details. This document is available on the VCDS intranet web site.

19. The project phases, including a general description of the related activities, are described in the following paragraphs. These definitions apply to both DGAEPM and DGLEPM divisions.

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a. Problem Identification. This phase involves the creation of a fully substantiated description of the

requirements to be satisfied, and the decision to pursue its resolution. Information is gathered and reviewed, objectives are established, estimates are prepared, and participants are identified. A proposal may be prepared by which the project receives its authorization and resources.

b. Options Analysis. This phase involves the preparation and examination of a number of options to satisfy the project’s requirements. This examination assesses the costs, benefits, risks and opportunities of all options against the requirements with a view to finding the optimum option to be pursued.

c. Definition. This phase makes detailed plans for achieving the objectives and implementing the project. Work packages are identified. Resources and budgets are assigned. Key members of the project are identified and appointed. Instructions and guidelines are issued to team members and a system for managing the project is selected.

d. Implementation. This phase executes the detailed plans made in the earlier phase. Work packages (activities and resources) are completed in sequence. Products and services are delivered. The project manager monitors the work and problems are resolved as they arise.

e. Closeout. In this phase, all requirements are verified, the final products are accepted, accounts are settled, the project is evaluated, closing documentation is prepared, and resources still assigned to the project are released and reassigned. Also, prescribed plans and necessary actions are set in motion to deal with the products of the project over the remaining equipment life cycle. Residual responsibilities that are required after the project team is disbanded are assigned to appropriate agencies.

20. DGMEPM currently uses a slightly different set of definitions. These are illustrated in Figure 2-2.

Figure 2-2 DGMEPM Project Phases

IDENTIFICATION

DEFINITION

APPROVAL

IMPLEMENTATION

VERIFICATION

CLOSURE

requirementidentification andvalidationpreliminary workplan and costingstartedpreliminary projectdirective started

work plan developedand costedproject directive fullydevelopedentered into classplan as a plannedprojectrisks identified

approval documentssubmittedproject approved atappropriate level

project executedwork plan fullydeveloped

verification ofrequirement beingsatisfied

closure reportdocumentssatisfactorycompletion of alldeliverablesidentified in projectdirective

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21. It is also important to understand how the LCMS stages relate to the DMS phases. The LCMS is concerned with the entire life cycle of the asset; therefore, the emphasis is obviously on the in-service phase. The DMS is more concerned with the conception and acquisition of the asset; therefore, it heavily loads these two phases of the LCMS. To illustrate how these relate to each other, refer to Figure 2-3. In this figure, the LCMS Conception Stage consists of the DMS Identification, Options Analysis, and Definition phases. The LCMS Acquisition Stage consists of the Implementation Phase of the DMS.

70 0100 1010Conception Acquisition In-service Disposal

DMS Project Phases

LCMS Stages

20 0600 2010

Iden

tific

atio

n

OptionsAnalysis Definition Implementation

Figure 2-3 LCMS and DMS Project Phases

22. There are numerous automated software tools available to facilitate project management. Some are available as desktop aids through LAN service providers. These include MASIS, database systems, project planning systems, workflow management systems, and process design and analysis systems. Specialist assistance and training programs are also available. The creation of a work environment in which the commitment to project management techniques is coupled with an appropriate set of automated software tools should be the goal of every EMT.

PROJECT MANAGEMENT KNOWLEDGE AREAS

23. The knowledge and skills required for effective project management can be broken down into nine knowledge areas. Details on each of the major processes associated with these knowledge areas are available on the MAT KNet.

24. The nine knowledge areas are:

a. Integration Management. This includes all the processes that ensure the various elements of the project are properly coordinated, with emphasis on integrated change management. It involves making trade-offs among competing objectives and alternatives in order to meet or exceed stakeholder needs and expectations.

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b. Scope Management. This area controls a project in terms of its goals and objectives and includes the processes required to ensure that the project covers all the work required, and only the work necessary to complete the project successfully. Scope Management ensures that all work necessary to complete the project is included in the assigned tasks. This management function is primarily concerned with defining and controlling what is or is not included in the project. Scope is the sum of the products and services to be provided as a project. The scope is described through the objectives of the project, the number, size and complexity of the activities to be performed in the project, the resources utilised and the value of the products produced. The Scope Statement is a key element of the Project Charter. It is a description of the project in terms of its output, approach and content. The scope of the project that is described in the Project Charter becomes the Scope Baseline. Alterations to this baseline would imply that a major change to the project has occurred. No changes to the project scope should be introduced without appropriate review, approval and control.

c. Time Management. This area controls the allocations of time within the project and ensures the timely completion of the project.

d. Cost Management. This knowledge area maintains effective financial control of a project and ensures the project is completed within the approved budget.

e. Quality Management. This area ensures the project products conform to requirements and will satisfy the needs for which it was undertaken.

f. Risk Management. This area identifies, analyses, and responds to risks that may prevent the project from being completed as designed.

g. Human Resources Management. This area directs and controls the human resources for the project and ensures the most effective use of the people involved in the project.

h. Communications Management (including Performance Management). This area organizes and controls the creation and flow of information affecting the project.

i. Contracting/Procurement Management. Ensures project resources are acquired in order to produce the end product and achieve objectives.

PROJECT MANAGEMENT ORGANIZATION

25. The organization supporting the project is usually determined by the PM. Most large military equipment acquisition projects use the organizational concept shown in Figure 2-4. The actual project membership, lines of responsibility, external interfaces (e.g. OGDs) and reporting processes vary as the project proceeds through its life cycle. Management of the project may be distributed over several authorities, with the PM providing the central focus for the overall effort. Functional responsibilities such as Engineering, Production, ILS, Operational Requirements, etc., may be conducted within their appropriate structures while other organizational entities can be added to suit specific project requirements. Central coordination of all project activities is accomplished by the PM and possibly a project support staff.

26. Most organisations cannot afford to employ their personnel in only one position. Project managers and team members by necessity must assume multiple roles. Some of these roles are project roles, and some are organizational. ESMs, for instance, may be PMs but also serve as the Systems Engineering Authority for the project. Simultaneously, these individuals may be carrying out “normal” duties within their permanent organisations.

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Admin

RequirementsManagement

SystemEngineering

Integrated Logistics SupportManagement

FinancialManagement

ProcurementManagement

ConfigurationManagement

Project Management

Figure 2-4 Generic Project Organisation

27. Projects also may lead to some variations in the normal hierarchy of an organization. A project manager may be subordinate to someone else in the permanent organizational structure, but positions may be reversed with respect to the specific project. Such cases often arise when the person in the higher organizational position is providing subject matter expertise to the project.

28. The time-limited and transitional nature of projects means that many key resources required for the project are obtained on a temporary basis. Many of these resources are “borrowed” from organizations that own and control them. This leads to the concept of projects as special operating entities, which cut across normal organizational lines and responsibilities. Negotiation, coordination and cooperation are necessary ingredients in the successful project management environment.

PROJECT GUIDANCE DOCUMENTATION

29. Project guidance documentation ensures that a project is managed in accordance with pre-determined methods, terms and conditions. The preparation of this documentation is an essential step in the design and execution of the project. Many project failures can be traced back to flaws in the original project guidance documentation. There are two principal guidance documents for any project. These are the Project Charter and the Project Management Plan (PMP).

30. The Project Charter is a document issued by senior management that formally authorizes the existence of a project. It delineates the authority and responsibility of the project manager, project director and other managers involved in the project. It defines such areas as:

a. The requirement for the project;

b. The equipment produced by the project;

c. The responsibilities and authorities of other organizations;

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d. The organization of the project;

e. The conduct, scope, cost estimate, and support given to the project; and

f. Formal management approval.

31. It also provides the project manager with the authority to apply organizational resources to project activities. For details on the Project Charter, refer to the MAT KNet.

32. The Project Management Plan (PMP) is a mandatory project document used to execute and control the project. It is an iterative working document that describes “where we are today” and the course needed to be taken (“where we need to go and what we need to get there”). For details on the PMP, refer to the MA&S Desktop (MAT KNet). The majority of the implementation details of the project are contained in the Engineering and Support Management Plan (E&SMP), which is a component of the PMP.

33. Within the Maritime community, the vehicle for providing project guidance and seeking approval is the Project Director (PD). This document identifies the project objectives, team members and duties, schedule, risk assessment, expected method of verification, costs and cash phasing.

References and Points of Contact

References Points of Contact

DMS Manual, Chapter 7

MA&S Desktop (to be renamed the MAT KNet in the near future)

Manual of Aerospace Procedures (MAP On-line)

DFPPC/DPFCP

DGSP/DGPS

DMASP 3

DQA/Life Cycle Quality Managers (LCQMs)

ECS Requirements Directorates (DAR, DLR, DMPPD)

APPLICATION TO CAPITAL PROJECTS

INTRODUCTION

34. This section describes some of the key elements of project management for EMT projects that are monitored and controlled within the DSP by the DMS, and illustrates how they apply to the project management functions and responsibilities of EMTs.

35. Early in the process, the EMT Leader/PM provides technical assistance to the Project Director (PD) and coordinates the planning activities required for project implementation including project coordination, procurement, engineering, and integrated logistics support. Once effective project approval is granted, the EMT Leader/PM is responsible for maintaining project momentum and for managing the efforts of the team of specialists engaged in carrying out the activities associated with implementing the project. An EMT Leader/PM must fully understand the responsibilities, and be familiar with the management and coordination necessary to complete an acquisition project. This includes the sequence of events the project should follow, the project-related tasks to be managed, the chain of command, any associated policy, procedural obligations or restrictions, the extent of his or her authority, and the interface with the responsible functional authority.

36. Within the Maritime community, projects are either fixed (one time) or recurring (annual). Recurring projects are approved once, with the yearly allocation being approved into the future. The yearly allocation is updated during each forecast review and revisited during the Fleet Support Plan review. For a detailed description of the project procedures for Maritime recurring/non-recurring projects, refer to the “Maritime Equipment Program Management Business Rules” available from the DGMEPM intranet web site.

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37. With respect to DGAEPM, specific guidance and procedures for the project and resource management of capital projects are available through the Manual of Aerospace Procedures (MAP On-line). This is available through the intranet.

38. Guidance for the management of land capital projects is available from the DGLEPM intranet web site.

ROLES AND RELATIONSHIPS

39. Project management within the DMS project life cycle phases involves a number of key participants and authority levels. These are:

a. Project Sponsor;

b. Project Director (PD);

c. Project Leader (PL);

d. Senior Review Board (SRB);

e. Project Manager (PM); and

f. Project Team Members.

40. Project Sponsor. The project sponsor is typically the organization with the problem that is going to be addressed by the project. Projects are usually sponsored by the operational elements of the CF whose interests are represented by the requirements staff within the ECS. The project sponsor typically approves and authorises the objectives, the scope, the approach, the budget, the resources and the termination of the project. The Project Sponsor normally provides the Project Director (PD).

41. Project Director (PD). The PD is the day-to-day representative from the sponsoring organization and is appointed by the sponsoring Level One Manager with the recommendation of the project leader. Typically, the PD represents (or sponsors) the operational requirement. The PD defines the operational or capability requirement, conducts preliminary studies, obtains initial approvals, initially enters and maintains the project in the CID, etc. The PD role is to ensure that project objectives, linked to a validated operational requirement, are established early in a project and maintained through to project completion. The PD obtains the necessary functional inputs through a combination of negotiations with functional managers and direction provided by the PL, the SRB and departmental committees. The PD’s terms of reference are available on the MA&S Desktop (MAT KNet). PD responsibilities include:

a. On behalf of the project leader, the PD manages project activities, including the preparation and staffing of the documents necessary to obtain departmental approval and resource allocation.

b. Throughout the life of a project, the PD provides guidance to the PM, obtains approval for any necessary operational and cost/capability trade-off decisions and program approval for any proposed changes to the scope of the project.

c. During the project-planning phase, the PD is responsible for maintenance of Financial Management Accounting System – Project System (FMAS PS) data.

d. On behalf of the project leader, the PD acts as the functional authority for the operational requirement and as the link between the project organization and user organizations whose needs the project will satisfy.

e. The PD is also responsible for the preparation of DMS decision documents, as well as certain project documents, such as the SOR.

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42. Project Leader (PL). The PL is the person appointed by the sponsoring department to be accountable for all internal and external aspects of a project. As the project matures, project leadership transfers from the sponsoring organization to the implementing organization. Project leaders may be the ECS or Group Principal, or project leadership may be delegated to the Director level. The PL’s terms of reference are available on the MA&S Desktop (MAT KNet).

43. Senior Review Board (SRB). The SRB is a departmental committee that provides advice on the management of activities leading through project approval and implementation to completion. It is the vehicle used to ensure Group Principals, ECSs and other major stakeholders have input into the management of the project. The SRB’s terms of reference are available on the MA&S Desktop (MAT KNet).

44. Project Manager (PM). The PM is the person responsible for planning and administering the project as defined by the Project Sponsor. The PM is the senior project authority from the implementing organization. As the project matures from identification to implementation, the PM assumes responsibility for the detailed technical and performance specifications, the logistics requirements, the business management of the project, procurement, the acceptance of deliverables, and the introduction of new equipment. The PM is appointed by the implementing Level One Manager and identified in the Project Charter. The PM manages project activities, while working with the PD to ensure the approved project activities are achieved. The PM is responsible to the PL for:

a. Providing technical advice to the PD and input to program decision documentation including the “Lessons Learned” portion of the Project Close-out Report;

b. Planning activities leading to the approval of a Project Management Plan;

c. Maintaining project momentum and managing the efforts of a specialist team toward the achievement of approved project goals, including cost, schedule and the SOR; and

d. Reporting project status including the maintenance of the FMAS PS data during project implementation.

45. If there is an urgent need, the PM is delegated the authority to go directly to the PL to resolve conflicts and maintain project momentum. This authority is unique to PMs; all others must follow the chain-of-command and staffing procedures. The PM’s terms of reference are available on the MA&S Desktop (MAT KNet).

46. Project Team Members. These are the individuals who carry out the work assigned to them by the PM. This work may be a substantive technical role in achieving the objectives, or it may be work involved with the management of the project such as maintaining the project schedule. The project team membership changes size and composition throughout the life of the project. In many cases, the work schedule and level of effort that a person can contribute to the project is strictly controlled. Team members may be drawn from internal sources, other EMTs, speciality support service providers, Engineering and Test Establishments (ETEs), Field Units, and/or other government organizations or contractors.

PREPARATION OF PROJECT DOCUMENTATION

47. Properly prepared and staffed project documentation ensures that a project is managed in accordance with pre-determined methods, terms and conditions. The preparation of this documentation is an essential step in the design and execution of the project. Many project failures can be traced back to flaws in the original project guidance documentation. As stated earlier, the key documents include the Project Charter and the Project Management Plan (PMP).

48. Project Charter. The Charter is prepared as a joint undertaking between the Project Sponsor and the PM during the Identification phase and serves as a repository of key information about the project throughout its life. The Project Charter usually does not change over the life cycle of the project and is referred to throughout the project to ensure that project activities remain on track. A project that cannot be carried out in accordance with its charter should be subject to a serious review and renegotiation. Details on the preparation of the Project Charter are available through the Capability Initiatives Database (CID). For a template of the Project Charter, visit the CID intranet site or the Manual of Aerospace Procedures (MAP On-line).

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49. Project Management Plan (PMP). The actions of the PM during the initial phases of the project have far-reaching effects both for the life of the project and extending through the equipment’s service life. As a result, a well-organized plan is essential if the project’s implementation is to be successfully managed. If the Project Charter is the “Owner’s Manual” for the Project, the PMP is the “Route Map”. It is a more detailed document than the charter and is used on a more continuous basis. The development, staffing, and approval of the PMP is the responsibility of the PM.

50. The scope of the PMP varies depending on the magnitude and complexity of the project. In general, the PMP will outline the various activities of the project, the individual responsibilities within the project team, and the method by which separate aspects come together to meet the overall objectives of the project. The PMP includes, but is not limited to, the following plans:

a. Communications Management Plan;

b. Procurement Master Plan;

c. Risk Management Plan;

d. Schedule Management Plan;

e. Scope Management Plan;

f. Staffing Management Plan; and

g. Engineering and Support Management Plan (E&SMP).

51. Annexes may be attached to provide details on acquisition, evaluation and test, deployment, maintenance, material supply, Initial Provisioning (IP), Repair and Overhaul (R & O), QA, personnel, publications and technical data, safety, hand-over responsibilities and Packaging, Handling, Storage, and Transportability (PHS&T).

52. The PMP is a living document that evolves as the project proceeds and the implementation details are developed. It is continually updated until the project is finished. The PMP should provide an indication of the status of the project and the work to follow. Periodic reviews of the PMP should be scheduled to ensure its validity. As a guideline, it is recommended that a complete review and issue of a PMP amendment take place once a year during the entire life of the project. Guidance for the preparation of the PMP is available through the CID. For details, see the CID intranet web site.

CAPITAL PROJECTS APPROVAL

53. Capital projects normally progress through four distinct phases under the direction of the SRB, as illustrated at Figure 2-3. They also require a host of documentation not only to gain the necessary approvals, but also to provide direction to project staff on the rules, responsibilities, functions and activities to be carried out during each of the project phases. Most documents developed in support of a project are living documents and, as such, evolve as the project advances. Progression from one phase to the next is based on the acceptance and approval of a summary document referred to as a Synopsis Sheet (SS). The equivalent document for the Maritime community is the PD. Figure 2-5 identifies the project documentation generally required in each DMS phase. Not all the listed documents must be prepared for every project since the complexity, cost and risk of each individual project dictates those requirements.

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Figure 2-5 Project Phases/Project Documentation

54. The SS is used to:

a. Provide sufficient information for Senior Management to permit a project to be entered into the LTCP;

b. Receive departmental approvals; and

c. Receive Treasury Board or Ministerial expenditure authority.

55. A template for the preparation of the SS is available through the CID intranet web site.

56. The following guidelines apply to project approvals:

a. The Minister has the authority to grant Preliminary Project Approval (PPA) and Effective Project Approval (EPA) for all projects up to $30 M subject to submission of an LTCP(Estimate) and its notation by Treasury Board (TB).

b. TB retains the authority to approve all projects over $30 M.

c. Major Crown Projects (MCP) follow the same format as outlined above, with an additional requirement for a Memorandum to Cabinet for approval-in-principle and a Project Brief, followed by regular status reports to TB after project approval.

57. The SS is an iterative document which is developed more fully as each stage of the project evolves and more information becomes available:

a. The initial synopsis sheet, the SS(ID) is brief, possibly only one or two pages, and is drafted on completion of the project identification phase;

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b. The SS(PPA) at the end of the options analysis phase; and

c. The SS(EPA) at the end of the project definition phase.

58. Each document contains progressively more detailed information. The required content for each of these documents will have been previously negotiated with the Treasury Board Secretariat and for most projects is sufficient to obtain either Ministerial or Treasury Board PPA/EPA approval.

DEVELOPMENT OF DEFENCE MANAGEMENT SYSTEM (DMS) DECISION DOCUMENTATION

59. The information available to senior management concerning the allocation (or possible allocation) of DSP resources must be valid, complete and current. The responsibility for ensuring that this information is accurate rests with the designated PD and/or PM. EMT members, under the direction of the EMT Leader, participate in project definition studies and provide advice with respect to the technical and logistic support feasibility of proposed solutions. This includes:

a. Provision of alternative solutions or improvements to existing solutions satisfying the stated capability requirement;

b. Definition of logistic support requirements for implementation and in-service support of the materiel;

c. LCC analyses as a means of evaluating each proposed solution on a purely cost basis; and

d. Assistance in determining or validating the total resource implications of each proposed solution.

60. Once the information is gathered, project documentation is developed and maintained through the CID.

61. The EMT Leader in the role of PM assists the PD with the preparation of the required Synopsis Sheets and ensures that they contain:

a. A statement of the overall objectives of the project and an outline of the potential solutions, including the use of Off-The-Shelf (OTS) equipment;

b. A substantive cost estimate of the time and resources required to satisfy the operational deficiency based on a Work Breakdown Structure (WBS) of the project;

c. A statement of the objectives of the next project phase and the methods to be followed to attain these objectives;

d. The project management resource requirements for the next project phase;

e. The expected SS(EPA) approval date;

f. A copy of the approved SS(ID); and

g. The names, appointments and telephone numbers of the PD.

62. Figure 2-6 presents an overview of the DMS system. It outlines each DMS phase, the activities contained within that phase, and the decisions taken to advance to the next phase. The SS(ID) should be prepared early and approved by the Sponsoring ECS/Group Principal. It is then submitted to the Director General Strategic Planning (DGSP) as part of each CC Level 1 Business Plan in order to be inserted into the LTCP. At the completion of the Options Analysis and the Definition phases, the SS(PPA) and SS(EPA) respectively are submitted to the ECS/Group Principal (PMB for Major Crown Projects [MCPs]) for endorsement and subsequent inclusion in the CC Level 1 Business Plan. All SSs must be endorsed by the SRB before submission to the ECS/Group Principals. For further information pertaining to the contents and/or format of Synopsis Sheets, refer to the DMS Manual available on the intranet.

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Decision Decision Decision SS(ID) SS(PPA) SS(EPA)

Identification Options Analysis Definition Implementation

Identify Capability Deficiency

Formulate Option Detailed Review Risk Assessment

Implementation Management

Discard Invalid Options Costing of Selected Option

Implementation Monitoring

Assess Benefits of Remaining Options

Implementation Planning Reports on Status of Implementation

Examine Risk Operational Handover

Decide Which Option Should Be Pursued

Close Out

Figure 2-6 Project Management Phases

63. Identification Phase. DPG documents and other strategic planning documents (such as the Canadian Joint Task List) describe the capabilities the CF must possess to meet government objectives. From these planning documents capability deficiencies are noted. The initial project planning process is focused on the capabilities that the CF requires to meet government objectives. It is not focused on solutions to the capability deficiency. Key activities of the project identification phase are identified in the DMS Manual, Chapter 7.

64. The results of the activities in this phase are summarized in the SS(ID). SS(ID)s are required for all capital projects with the exception of MRs.

65. The purpose of the SS(ID) is to obtain:

a. Agreement on the identified capability deficiency;

b. Agreement on the proposed options to be examined;

c. Vote 1 funding for the options analysis phase; and

d. Approval for the planning of the total anticipated capital project cost.

66. Options Analysis Phase. During the Options Analysis Phase, a comprehensive, cost options analysis is produced, a cost estimate for the preferred option is prepared and the cost of executing the next phase is estimated. Key activities in the options analysis phase are identified in the DMS Manual, Chapter 7.

67. While not all-inclusive, the following activities are normally considered options analysis:

a. Options analysis/feasibility studies for the purpose of identifying various options of capability levels;

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b. Studies and scenario testing for the purpose of refining and quantifying the SOR cost estimates of both acquisition and life cycle of various options;

c. Industrial preparedness requirements;

d. Research and development studies;

e. Preliminary environmental assessments/option analysis;

f. Personnel, technology, priorities and their impact on other capabilities;

g. Socio-economic studies and market analyses;

h. Topographic surveys; and

i. Pricing and availability studies.

68. A key document introduced in this phase is the Project Profile and Risk Assessment (PPRA). The PPRA describes the project objectives, background, management framework, plan and risk assessment. It is a “living document” that may be updated many times over the life of the project. Risk assessment of DMS projects is carried out on external factors (i.e. arising from circumstances over which project management cannot exert a controlling influence), and internal factors (that is, circumstances which project management staff can control). For details of the PPRA and a template for its preparation, see the CID intranet web site.

69. The activities of the options analysis phase are summarised in the SS(PPA). The purpose of the SS(PPA) is to obtain:

a. Approval in principle for the preferred option, the anticipated total project cost estimate, and the resulting Personnel, Operations and Maintenance (PO&M) implications of implementing the project;

b. Agreement to proceed to the definition phase; and

c. Vote 5 funding for the definition phase.

70. The EMT Leader assists the PD with the preparation of the SS(PPA) and ensures that the following information is present:

a. All objectives to be achieved in the implementation of the preferred option, such as performance characteristics (technical and operational), proposed implementation date, total estimated project expenditures, and socio-economic benefits.

b. An analysis of all options that could satisfy the stated capability requirement, including the use of OTS equipment.

c. An analysis of QA considerations.

d. A statement of the objective of the next phase of the project.

e. The estimated project management resources required for the next phase of the project.

f. The expected SS(PPA) approval dates.

g. Copies of any approved SS for the project.

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71. Definition Phase. During the definition phase, a substantive cost estimate and a PMP are prepared. Key activities in the definition phase are defined in the DMS Manual, Chapter 7. The activities of the definition phase are summarized in the SS(EPA). The purpose of the SS(EPA) is to obtain:

a. Approval for the selected option;

b. Agreement on the PO&M costs and funding methods associated with the project’s implementation;

c. Approval to proceed to the implementation phase; and

d. Vote 5 funding for the implementation phase.

72. Transition to the implementation phase requires that project leadership shift to the project implementation organization (usually ADM[Mat]) from the project sponsoring organization. At this point, the EMT Leader (as PM) assumes the lead responsibility for the project. This handover of responsibility is described in the Project Charter and formally acknowledged in writing. It normally takes place before:

a. Vote 5 capital expenditures begin;

b. Any negotiations are undertaken with Industry; and

c. A Senior Project Advisory Committee (SPAC) is convened (if required).

73. During this phase the PM assists the PD with the preparation of the SS(EPA) and ensures that the following information is included:

a. A full disclosure of all Substantive Cost estimates associated with the proposal.

b. The latest Operational Readiness and Effectiveness (ORE) data available for the tasks that will benefit from the proposal, as well as an analysis of ORE data and trends that might have a bearing on the project timings, with the exception of R&D projects, which are exempted.

c. A copy of the Procurement Review Committee (PRC) Record of Review.

d. A statement concerning the project’s environmental impact and results of the environmental assessment.

e. A statement describing the impact of the use of simulation on the training costs, the energy management program, and the environment.

f. A paragraph describing those ILS elements included in the project cost.

g. Details in support of the total cost of the technical documentation including a separate cost for the provision of bilingual technical publications.

h. A list of all significant project milestones.

i. A list of resources required for project management, as an annex containing a table summarizing personnel requirements.

j. A list of resources to be maintained, modified, replaced or deleted.

k. An outline of the training concept, including training personnel requirements, costs of training aids, in-service and out-of-service training, and post-graduate training.

l. A description of the degree to which the proposed solution will satisfy the wartime support requirements and Defence Industrial Preparedness implications.

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m. A basic calculation of the quantity of equipment, initial provisioning, spares, publications, etc to be procured, including explanations of all assumptions made.

n. A copy of the SS(ID), to ensure that attention is focused on the approved capability deficiency, and to avoid needless repetition.

o. A Capital Summary, for capital projects under $10 M.

74. Implementation Phase. During the implementation phase, all project management activities to procure the new capabilities and introduce them into service are executed. As the equipment or system is introduced into service, there is a necessity to consolidate the operational, technical, logistics and financial plans for its use. Equipment Program Plans (EPPs), Class Plans, Weapons Systems Support Plans (WSSPs) and Equipment Logistics Directives (ELDs) are used to convey these plans to the ESM staff and others who will support the equipment during its in-service phase. These plans and directives are updated throughout the equipment’s service life.

75. Key activities in the implementation phase are:

a. The execution of the approved PMP;

b. Project reporting as required;

c. Annual (or as required) monitoring by the project SRB;

d. Acceptance and fielding of the equipment and support package; and

e. The transition to the LCMS.

76. All program approvals have been received at this point in the project life cycle. No further program documentation is produced for senior management unless:

a. There is a significant change to the scope;

b. There is an increase in funding requirements; or

c. The project is being approved in “phases” or “cycles”.

77. Amendments to the DSP are prepared, staffed and processed in a similar manner as an original Synopsis Sheet except that the amendment will indicate the amendment number and:

a. The last approved figures from the recommended line in the last change approved for the project; and

b. Changes that request additional funds to continue a project or changes that increase the total expenditure must include optional courses of action, as well as the reason for the increase.

78. ELDs are promulgated during the project’s implementation phase (acquisition stage of the LCMS) as a means of disseminating the overall support program, equipment/system allocation and utilization rates, as well as the equipment/system’s intended use during the in-service and disposal stages of its life cycle. The PM is responsible for the preparation of the ELD(s) but typically, ELDs are produced by EMT/project specialist staff.

79. Details on the development and preparation of ELDs are contained in the LCMM Activities Handbook.

80. Close-out Phase. All large government projects must be closed in accordance with standard procedures. Any deficiencies in deliverable goods and services must be identified, and the residual responsibilities assigned to the appropriate authority. Treasury Board requires that project reports be prepared. Contingent liabilities, which are obligations that may arise in consequence of a potential future cost, are also identified. Examples include:

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a. Litigation arising out of a breach of contract;

b. Damages for personal injury or damages to property; and

c. Compensation for labour disputes.

81. Closeout of a project occurs with the formal acceptance of final deliverables, the submission of a final Project Completion Report (PCR), and the transition to in-service support. Details of the PCR and a PCR template are available at the CID intranet site.

82. The key activity in this phase is the Project Closeout and Review Meeting. This should be jointly chaired by the PM and PD, and should establish the main input to the PCR. Details of the meeting and a checklist are available on the MAT KNet.

83. PCRs are prepared to evaluate the project in terms of attainment of objectives, resource requirements, schedule, responsiveness to user needs, quality, adherence to policies and regulations, deficiencies and problems, and lessons learned. EMT specialist input is necessary in assembling this type of information.

84. Closeout activities may involve performance measurement of the new equipment and systems, the quality of deliverables, outstanding obligations and liabilities, and defining lessons learned. EMTs take custody of project files, project support materials, and other assets released from the project. When the project office is closed, any uncompleted work in terms of contract management, transition, acceptance and management of deliverables is normally assigned to an EMT.

85. After the project is closed-out, equipment is managed as part of the LCMS.

PROJECT TRANSITION (PM TO IN-SERVICE SUPPORT)

86. Once the project implementation phase is complete, the responsible in-service support staff must check to ensure that all project management functions have been completed and documented, and that all support elements are in place. Project hand-over comprises those activities concerned with the transition of a project from the control of the PM to the control of the responsible EMT. Details are available on the MAT KNet.

87. Hand-over of a project from project staff to an in-service support organization depends on a complete and accurate picture of the project’s status including:

a. A full description of the equipment and facilities;

b. All technical and supporting documentation;

c. A list of defects and deficiencies, and the agencies tasked with their resolution;

d. A list of outstanding tests and trials;

e. A list of outstanding modifications or design changes;

f. All inspection and test certificates;

g. Applicable contractor/product QA history files;

h. The status of drawings, instruction manuals, and technical orders;

i. The status of Equipment Support Lists (ESLs);

j. The status of the ELDs;

k. An assessment of the contractor’s work and materiel;

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l. The disposal of scrap and surplus materiel;

m. The disposition of Special Production Tooling (SPT), Special Test Equipment (STE), and other equipment-specific tools related to upkeep; and

n. The supply status including the progress of IP activities.

SUMMARY

88. Figure 2-7 is a summary of the documentation and how it relates to each individual within the DMS project.

P – Prepared By R – Reviewed By S – Signed Off By

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Ana

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Project Sponsor S S P R S R – – – – S

Project Director P P P R P P P P R R –

Project Leader – – – – – S S R R R S

Senior Review Board

S R – S R – R S – – R

Project Manager S P S R P R P P S S P

Project Team Members

P P P P P P P P P P P

Figure 2-7 Project Document Staffing



D-01-002-011/SG-001, Standard – The Preparation, Format and Content of Equipment Logistics Directives (ELDs)

Defence Management System (DMS) Manual

MA&S Desktop (MAT KNet)

DFPPC/DPFCP

DMASP 5-5

DQA Staff

PWGSC Contracting Staff

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APPLICATION TO IN-SERVICE PROJECTS

INTRODUCTION

89. An integrated EMT program to sustain or improve an existing equipment’s capabilities can be as complex – and involve as many resources and activities – as a capital program. In-service support efforts are generally managed as programs/portfolios rather than projects. To review, a program is a group of projects managed in a coordinated way in order to obtain benefits not available by managing them individually. Generally, EMT Leaders will have multiple projects to support/improve assigned equipment and the challenge is balancing the various projects within the overall equipment support program.

90. To succeed, EMTs need a structured planning and control framework to ensure that both resources and activities are effectively and efficiently programmed. The framework must contain sufficient detail for internal EMT planning and control, as well as provide necessary links to external business and resource management processes (such as budget and financial management, business planning, and performance measurement). Such a planning and control framework provides the EMT Leader with the necessary processes and tools to successfully manage an EMT and its associated equipment capabilities/responsibilities within an understandable and integrated equipment management program (the EMT Program).

91. The EMT planning and control framework is a capability-based internal EMT analysis of current status, trends, and future needs that rolls up into a collection of project-like activities to sustain, improve or replace a defined equipment capability. As an EMT often has a number of equipment capabilities, these proposed activities could then be:

a. Compared with priorities and guidance from higher levels;

b. Prioritized;

c. Identified as funded projects, allocated resources, and executed according to the project’s established schedule;

d. Identified as unfunded projects and used to define likely impacts;

e. Communicated in both planning and execution phases; and

f. Formed into a foundation with solid linkages to business planning, financial management, project management, and overall performance measurement.

92. There are two primary documents within the EMT that are used to complete this framework and to link EMT plans and activities to external program management activities. These are the Equipment Support Plan (ESP) and the EPP. The EPP is also known as the Weapons Systems Support Plan (WSSP) or the Class Plan depending on the environment.

BUSINESS PLANNING PROCESS

93. The business planning process is an effective method that allows short-term activities to be related to a long-term strategy in addition to clarifying the relationships between resource allocation, activities and expected results. Business planning is a holistic approach that relates ADM(Mat) products (what is to be provided) to both the resources available to deliver those products and the desired results. Once established, business plans are updated to reflect the best available information. As new information is received, it is incorporated into the existing plans. Consequently, there is seldom, if ever, a requirement to completely rewrite a business plan. There are only two external influences that should lead to business plan updating:

a. The issuance of revised output requirements that could be included in a new DPG or announced in a VCDS call letter; or

b. A change in resource levels that would be manifested through the budget process.

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94. Revisions to the DPG are issued through the Chain of Command. ADM(Mat) receives a new DPG, assesses the impact of any changes and issues guidance to the Divisions. This guidance necessitates that business plans be updated. If the new DPG can only be accomplished by changes in resources or changes in performance expectations, the EMT Leader must note and take into account such changes. Similarly, revised resource allocations are received through the Chain of Command. EMT Leaders, on receiving a revised resource level, must conduct an impact analysis and assess the implications on the current ESP/EPP. It is at the Director, EMT Leader, Fleet Manager or Class Manager level where these impact analyses play a significant role. After consultation, the EMT Leader determines if an activity must be funded and identifies an offset within the ESP. If an offset cannot be identified and the activity is considered important, the EMT Leader consults higher authority and the client for guidance. As a result of consultation with the client and higher authority, the following direction can be expected:

a. The activity must be funded and a directed offset is normally identified;

b. The activity is to be resubmitted for consideration during the next business planning cycle; or

c. The activity is not funded and there is no further action.

95. The preparation of estimates is an important first step toward the establishment of a proposed activity in the EMT work plans. The funding process begins with a call for new business plan requirements at least six months in advance of the Fiscal Year (FY) in which the required funds are to be spent. EMT Leaders submit their business plans (based on the ESP and EPP) through their applicable Director. Whenever new activities are forecast, it is important that they be fully justified and that the necessary Divisional/Directorate/Client approval be obtained before being added to the divisional submission.

96. Figure 2-8 illustrates the overall planning and control framework. Various external influences and the ESP contribute to the development of the EPP. The EPP Is the key link to the EMT’s business plan. The business plan drives start of various projects that produce direct or indirect changes to the equipment or its support environment. Through the Maintenance Management Information System (MMIS) or informal/formal reporting methods, the effectiveness of the change is assessed leading to further changes in the ESP.

EQUIPMENT SUPPORT PLAN (ESP)

97. The ESP provides the current view of the effectiveness and efficiency of the support program and is the vehicle for identifying any equipment status and supportability issues. In essence, this represents a “health check” for equipment, its support equipment, and the related support system. Maximum use should be made of metrics available from tools such as EMIS, PERFORMA, NMIMS and other ILS deliverables in generating the ESP. Not all the information contained in the ESP will be quantitative. As the EMT receives reports from the field, ESMs are likely to generate their own conclusions about the root cause of reported problems. These are also captured in the ESP since the goal of the ESP is to present a complete picture of the equipment and its supporting elements. Where deficiencies are identified, EMT members are required to develop and present cost/benefit/time options for all activities to sustain, replace, or improve a capability. It is most important that any deficiency recorded in the ESP also describe the impact if the EMT’s recommendations are not funded.

98. The ESP provides detailed justifications for all equipment management activities across all equipment using a common form. This facilitates the EMT’s job of resource loading and leveling as well as helping the EMT to communicate the situation surrounding that asset. The ESP enables the EMT to:

a. Identify and prioritize any needed improvements;

b. Build them into applicable business plans; and

c. Be assured that they are justified, planned, funded, tracked and executed.

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Figure 2-8 Planning and Control Framework

99. The development of the ESP should commence with an examination of the expected and measured equipment performance and availability. When this information is compared, any discrepancies will lead to a more detailed examination of the specific elements of the equipment support system (e.g. maintenance repair times, supply/distribution response times, or reprovisioning cycle times). Once the root cause of the problem is identified, corrective actions are defined and included in the ESP. The result of this analysis presents a number of options defining necessary EMT activities to either sustain, improve, or replace equipment, equipment support capabilities or associated MA&S processes. These are identified, examined and developed into an integrated list of justified and affordable actions linked to a specific equipment capability and recorded in the ESP.

EQUIPMENT PROGRAM PLAN (EPP)

100. The objective of the EPP is to provide a comprehensive plan to effectively manage the operational and financial value of an equipment/system class. The EPP establishes the performance and configuration baseline of the system, specifies the requirement, cost, and schedule of all planned acquisition and in-service activities, and records the operational and financial value of the asset. The EPP also provides the necessary technical input into the business planning process.

101. Within the EMT, the EPP provides an integrated summary and overview of all EMT activities in support of a specific equipment capability or major system. These are grouped into three areas: sustainment activities, improvement activities and replacement activities, which can relate to either the equipment capability or its associated support system.

102. The EPP is a key link to business plans and the eventual control of the funded EMT program. The EPP is prepared in three steps:

a. Identification of needs and justification of activities to sustain, improve and/or replace equipment capabilities (mostly from the background ESP analysis);

Strategic Plans

EquipmentProgram Plans

BusinessPlans

MaintenanceManagement

Information Systems

$ Financial Data(FMAS, LCC, Cost Model, etc.)

EmergingTechnologies

LegislativeChanges

EquipmentSupport Plans

Informal/Formal Dialoguebetween EMT, Operational, and

Maintenance Staff

Capital, NP, or MRProject

Equipment/System

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b. Development of detailed activities/costs and project plans to implement these identified activities; and

c. Application of priorities, program guidance and funding restrictions, including EMT staff constraints, to identify what activities will be pursued and the impact of deferring other work.

103. Once prepared, the EPP is a key summary document to link EMT activities and impact into budgets, approval processes, business plans, and eventual execution of activities. The EPP is used as a primary document to plan, control and communicate the EMT plan for a specific equipment capability.

USING THE PLANNING AND CONTROL FRAMEWORK TO CREATE AND EXECUTE AN INTEGRATED EMT PROGRAM

104. To move from a collection of equipment capability-based information plans to an integrated EMT program that can be linked to business plans and their execution, the EMT needs to work through a cyclic process incorporating five steps. These are:

a. Initiating a new and/or updated EMT program, including production of initial ESPs for each equipment capability managed by the EMT and the overall EMT EPP;

b. Planning an updated EMT program, including links to higher-level business planning;

c. Executing approved projects within the EMT program;

d. Controlling execution of, and changes to, the EMT program; and

e. Completing an EMT program phase/cycle.

INITIATING A NEW/UPDATED EMT PROGRAM

105. To initiate a new and/or updated EMT program, the EMT Leader must provide team members with sufficient fleet/equipment planning guidance to initiate any updates to their ESPs and the EPP. The EMT Leader’s direction must include:

a. Any current resource constraints;

b. The initial allocation of resources to fleets/equipment;

c. Any identified or implied priorities;

d. Required standard performance indicators (to facilitate comparisons between equipment); and

e. Work schedules to produce ESPs and EPPs.

106. The EMT Leader should:

a. Confirm and explain (as necessary) any guidance to EMT members;

b. Verify the team members’ analysis and their use/collection of key standard indicators;

c. Monitor and expedite progress; and

d. Document and control any change to initial guidance elements.

PLANNING THE EMT PROGRAM

107. Once all the updates are collected, the EMT Leader must rationalize the required activities with the available resources. This reconciliation (the EMT program) is then introduced into the business planning process and the necessary approvals solicited. Once the plan is approved, the EMT program needs to be communicated to all stakeholders including the EMT members and a formal internal program management plan is prepared to implement the approved program. The EMT Leader is specifically charged to:

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a. Reconcile the resource requirements across the team EPP(s). This is accomplished by balancing team member arguments and information in support of their individual agendas; considering imposed and implied priorities; and comparing key common indicators between fleets/equipment such as:

(1) Equipment performance (capability and availability versus need);

(2) Equipment support system performance;

(3) Equipment maintenance performance;

(4) Equipment management performance; and

(5) Equipment support system elements (quality, currency, and utility).

b. Integrate team EPP(s) into business plans by:

(1) Extracting activities into proper budget and business planning formats;

(2) Summarizing, at the EMT level, the justification and impact associated with the individual EPP plans; and

(3) Allocating funds to cover NDHQ-funded expenses for R & O or an Engineering Change to modify the equipment to reduce the yearly maintenance cost.

c. Obtain the approval of the proposed plan by providing supporting information to higher-level business plan approval processes, in particular, presenting justifications for funded activities and presenting impacts for unfunded activities.

d. Adjust the EMT program to match the decisions taken.

e. Communicate the approved plan to EMT members and stakeholders.

f. Develop an internal plan to execute and control the EMT program. This plan should include:

(1) Work Breakdown Structures (WBS) and schedules, especially for shared resources;

(2) A work control plan;

(3) A change management plan; and

(4) A status reporting and monitoring plan.

108. It should be noted that even for National Procurement (NP) or R&D projects, some form of project guidance documentation might be necessary depending on the dollar value of the project. Typically this documentation would be limited to synopsis sheets.

EXECUTING THE EMT PROGRAM

109. The key to effectively and efficiently executing the EMT program is to have the EMT Leader manage approved activities as projects in accordance with the project management principles described earlier in this Part. This requires that the EMT Leader controls work allocation and sets priorities within the EMT. Planned and ad hoc status reporting, both internal and external, is also necessary.

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CONTROLLING THE EMT PROGRAM

110. The EMT Leader’s key activities in controlling the execution of the EMT program include:

a. Comparing results with expectations (planned/ad hoc/exceptions) through:

(1) Performance measurement;

(2) Baselining; and

(3) Analyzing variances and trends (impact, causes/effects).

b. Solving and expediting internal problems.

c. Managing necessary changes to the approved plan by:

(1) Identifying;

(2) Analyzing options;

(3) Approving changes (or seeking approval as necessary);

(4) Updating the plan;

(5) Informing EMT members and stakeholders of the now-changed EMT program; and

(6) Controlling the introduction of changes.

111. The primary vehicle for this is the quarterly EPM Budget Reviews. As part of this effort, the EMT Leader needs to be prepared to address both positive and negative changes to the EMT program. The use of project management principles provides the necessary framework for determining how the change can be addressed. For example, when presented with the need to reduce the EMT budget, having a prioritized EMT plan will provide the necessary information to determine which EMT activities would have to be deferred. Similarly, should funds suddenly become available, a well-managed EMT program has the necessary project descriptions and justifications to quickly gain the necessary approvals and exploit the sudden availability of funds.

COMPLETING AN EMT PROGRAM PHASE/CYCLE

112. At the end of an EMT program cycle (e.g. a FY or a new business planning cycle), the EMT Leader completes the process by analyzing the achieved end-state and provides updated inputs to the initiation of the next cycle. Inputs may include improvement activities or process changes related to lessons learned in the just-completed cycle.

BUDGET FORECASTING AND ESTIMATION

INTRODUCTION

113. The majority of the activities initiated and controlled within an EMT require a source of funding. EMT Leaders are responsible for identifying, submitting and seeking approval for all funding necessary to support currently approved as well as planned activities. Funding to support most EMT activities is obtained through the business planning process. Business planning supports the NP process funded from the PO&M budget; the Capital and the MR processes funded from the Capital budget.

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CAPITAL/MR VERSUS NP

114. In order to understand the type of funding required to support EMT activities, the following brief explanation is provided:

a. Capital. (Funding Greater than $5 M) – If the intent of a new requirement is to gain new capability or improved performance, then it must be funded by Capital. Capital is broken down into two categories: Strategic and Non-strategic. A capital project can be strategic if:

(1) Cost exceeds $100 M;

(2) It is deemed to be a high risk project; or

(3) It is deemed politically sensitive.

b. NP. The NP process is used to identify the ongoing support required for the operation of materiel that is currently in the DND inventory (i.e. in-service). In reality, NP consists of a number of contracts raised to support the in-service maintenance/replacement and repair of DND equipment. It must be emphasized that NP is not designed to gain a new or improved capability.

c. MR

(1) The MR process is used for the one-time purchase of equipment, materiel or services where:

(a) The total capital cost is less than $5 M;

(b) Management is performed by in-house staff;

(c) The total recurring NP costs do not increase by more than $5 M in the first five years; and

(d) No project definition funds are requested. Recurring costs are defined as year-after-year expenditures for the life of a piece of equipment.

(2) Within Maritime Command, MRs are further divided as follows:

(a) Miscellaneous Recurring Requirements (MRR). Recurring acquisitions to replace minor capital items required to maintain or sustain a current capability (commonly referred to as “filling the bins” or “life cycling”). The individual item cannot exceed $1 M and Level 2 Capability Planners manage the acquisition.

(b) CMS Sponsored MRs. The one-time acquisition of minor capital items that update or enhance an existing capability or provide a new capability when the total project value does not exceed $5 M. These requirements are usually pan-naval in scope and centrally managed.

(c) Local MRs. The one-time acquisition of minor capital items that provide a new capability or update/enhance an existing capability with a cost of less than $100 K and that does not affect ship capability, ship configuration, or impact on individual operator/maintainer training. Local MRs are managed by Level 2 Capability Planners and procured through local agencies.

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FUNDING

Capital• Strategic > $100M • Non-Strategic $5-100M

Miscellaneous Requirements• Buy and Try• MRR• MR Sponsored

National Procurement• Baseline• New Additions

Figure 2-9 Funding Sources

115. NP and MR funds are used to finance the following:

a. Large, general weapon system maintenance contracts;

b. Contracted R & O;

c. Spares, including contracts for replacement spare parts for non-repairable equipment as well as accountable advanced spares in support of R & O lines;

d. Technical Investigation and Engineering Services (TIES) and TEMS;

e. Field Service Representatives (FSRs) and Technical Services Representatives (TSRs);

f. Projects to modify, update or replace old, obsolete and/or unsupportable equipment;

g. Foreign Military Sales (FMS) / Cooperative Logistics (COLOG) arrangements with the U.S. for the purchase of spare parts;

h. Ammunition;

i. Sonobuoys;

j. Test and Evaluation (T&E) programs;

k. Tools or test equipment upgrade or replacement;

l. Modification kits and programs;

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m. Request for Supply Arrangement (RFSA);

n. Acquisition of technical publications and data; and

o. Any other funding requirements related to NP.

PREPARING SUBMISSIONS OF NATIONAL PROCUREMENT ESTIMATES

116. EMT Leaders are responsible for the preparation and submission of annual funding estimates to their Director/Divisional financial staff. Estimates are to be submitted in accordance with the instructions and timings specified in the call for new business plan requirements. These processes vary from organization to organization and copies of business rules are usually available from the BMT.

117. When estimating funding requirements, EMT Leaders should include estimates of baseline activities as well as any new requirements. Baseline activities are previously approved ongoing activities such as R & O. Estimates for new requirements reflect the funding required to support future activities such as new procurement, training, modifications, travel, engineering support and any other relevant activity. Estimates must be realistic, based on past experience, and modified to meet the specific requirements of the applicable activity. These generally derive from the EPP estimates already prepared by the EMT.

NP ESTIMATES

BASELINE- Ongoing- Previously Approved

NEW ADDITIONS

Substantiation

SafetyOperational Considerations

Business Case

Figure 2-10 NP Estimates

118. Procedures – Baseline Activities. Baseline activities are previously approved and funded activities. These need to be examined on a yearly basis. The EMT Leader must determine all upcoming NP funding requirements for the period of time covered by the applicable business plan (typically five years). The NP estimates submitted to Directorate/Divisional financial staff require the following type of information:

a. Substantiation of need;

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b. Applicable scales of issue or other basis of calculating the requirements;

c. Degree of urgency;

d. Status of applicable specifications;

e. Travel;

f. Training;

g. Additional back-up data; and

h. Any other information.

119. If the baseline activities involve an equipment modification, they need to be supported by providing the financial staff with the following information:

a. Identification and justification of the modification program;

b. Modification program start date and the effects of any delay;

c. Modification approval date;

d. Unit cost per kit and installation cost per kit;

e. Number of kits required;

f. Total parts cost and total labour cost;

g. Training;

h. Travel;

i. Spares;

j. Estimate of impact on future costs (i.e. estimate of savings or incremental costs from modification); and

k. Who will perform the modification (i.e. under contract or in-house).

120. Funding requirements for contracted support (including R & O) must include the following information, as applicable:

a. Request for Supply Arrangement (RFSA);

b. Unit and location of requirement;

c. Category of service required;

d. TSRs;

e. FSRs;

f. Technical assistance by contract;

g. Engineering consultation;

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h. New requirement or renewal of an existing contract;

i. Justification of the work;

j. An explanation why the work cannot be accomplished by in-house staff;

k. Suggested/recommended contractors;

l. Estimate of cost; or

m. Any other details considered necessary to evaluate the requirement.

121. Procedures – New Additions. There are three general areas to be considered for new addition submissions: business cases, safety considerations and operational considerations (legal/regulatory). Each is unique and must be dealt with in as much detail as possible.

122. Business Case. A Business Case is used to substantiate a new requirement and provide a compelling reason for decision-makers to approve new funding. It is an analysis of the costs and benefits of a proposal, usually to determine the payback period of an investment. Two examples are:

a. The replacement of a piece of equipment that would require an extraordinary amount of funding for support over its life expectancy versus the cost-effectiveness of the new equipment identified in the business case; and

b. An R & O contract to refit a bulldozer (including the latest upgrades available) at a significant cost savings to the Crown instead of replacing this vehicle with a new bulldozer.

123. It is extremely important that the business case identify when and how the Crown will recoup the investment and provide savings. The business case should contain the following steps:

a. Aim. It should be directed toward an approach that results in increased cost-effectiveness while supporting the objectives in the business plan.

b. Identify and Evaluate Options. All viable options should be identified and evaluated to ensure they are related back to the objectives stated in the business plan and the aim of the business case.

c. Time Line. It should identify a one-time saving in a single year, recurring savings from year to year, or the number of years that are required for an initiative to be in effect for it to be attractive.

d. Discounted Payback Analysis (DPA). DPA is a cost-benefit analysis that qualitatively determines the relative benefits versus costs of a proposal. These benefits generally fall under one or more of the following categories: Personnel Costs, Equipment Costs, Facilities Costs and Other Costs versus Savings.

e. Qualitative or Impact Analysis. This section should identify the impact of the proposal on policy, operations, and market.

f. Risk Assessment / Sensitivity Analysis.

g. Recommendations based on quantitative results, qualitative analysis and elements of risk.

124. Safety Considerations. These requirements do not normally require a business case for justification. However, complete justification, analysis and consultation with the client is required prior to submission for consideration under the NP process. The problem analysis must clearly assess the risks relating to the probability and the severity of the failure. There must be an analysis of all possible options to remove the safety threat before a submission for safety-related funding is considered. EMT Leaders should be aware that safety-related funding requests might not be supported if the probability and severity of a failure pose a low risk.

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125. Operational Considerations (Legal/Regulatory). Operational considerations are not related to a new or improved capability requirement, but to the legal or regulatory aspects of the operation of equipment/systems. For example, a new government regulation might restrict CF equipment from operating in certain areas without modification (such as not allowing CF aircraft to fly into an area without Noise Limitation Devices for engines). In this case, there are external factors that require the modification of CF equipment/systems.

126. Considerations – General. No matter how well business plans are developed, unforeseen events can arise that will impact the EMT’s ability to support all of its activities. For example, unforeseen cost increases due to a supplier’s bankruptcy; priority changes that demand an activity come on-line sooner than originally planned; and equipment purchases conducted at the Unit level (less than $40 K) that now require support. These all require EMT Leaders to make resource reallocation decisions.

127. Environmental Differences. There is a difference in the directive and guidance documentation that governs how the Environmental Divisions conduct their business to meet the ADM(Mat) mission. Therefore, EMT Leaders should have a complete working knowledge of their own Division and Directorate requirements and be cognizant of the alternative methods used by other Divisions to prepare NP estimates.

a. DGLEPM. The DGLEPM business planning cycle is conducted in three phases: preparation, writing and signature. The preparation phase begins in october, two fiscal years prior to the first year of the business plan (18 months prior to the year in which funding is spent). At this time, EMT Leaders in conjunction with inputs from EMT staff, Directorate financial staff and business planners are involved in generating all estimates and determining all priorities with the assistance of the primary Command that is being supported. This phase ends in May with a Divisional presentation to the CLS, whereby the planning of the prior seven months is approved.

b. DGAEPM. The DGAEPM business planning cycle is defined in the “Manual of Aerospace Procedures, Quality Document Control”, No. DG02.002 and is available on the intranet. The Business Plan process is initiated through the issue of the Defence Plan (DP) in April of each year. This document sets the overall strategic direction for the department and takes into consideration new and changed government priorities as well as funding levels as set in the annual budget. The DP is interpreted at the group level and revised reference levels for total spending and manpower levels are provided to the Division. These reference levels provide the supply side of the Division’s business and the demand side is provided by the CAS Level 1 Objectives that determines Yearly Flying Rates (YFR) for each fleet. This activity level determines the consumption rates for spare parts and the costs associated with periodic inspections and maintenance. The reference levels provided by ADM(Mat) are apportioned by Director Aerospace Engineering Business Management (DAEBM) to the Weapon System Manager (WSM) and Directorate level. Within each Directorate and their associated Weapons Systems a preliminary budget is prepared for submission to DAEBM. At the same time, DAEBM staff consolidates the strategic objectives from ADM(Mat) and CAS, revising the objectives for the Division to align with the updated direction that has been provided. Then DAEBM staff consolidates the budgets and a gap analysis is performed to identify areas where expected results will not be achieved due to staff or budget limitations. The identified gaps are reviewed with ADM(Mat) and CAS in an attempt to eliminate shortfalls. DAEBM staff prepares the first draft of the Business Plan for review by the Board of Directors (BOD)/DAEBM as appropriate. Following any required changes, the final package is presented to the BOD and, upon approval, submitted to ADM(Mat) for inclusion in their consolidated Level 1 business plan.

c. DGMEPM. A call to the Fleet Support Plan is made each year around November, which causes the various class plans to be amalgamated into the Fleet Support Plan for consideration by the Ship Management Committee (SMC) and the Ship Management Working Group (SMWG). These are joint CMS and ADM(Mat) committees. The SMWG prioritizes the work and decides which projects should be progressed against the various funding envelopes to fit within the resources that are expected. NP estimates are provided in a PD format. The PD is conducted in four phases. During the identification and combined development/definition phases, the PD is formulated. It is in these phases that strategic analysis is developed with the client, ILS issues are investigated, life expectancy aspects are considered, and funding is addressed. PDs that include NP estimates for both MARLANT and MARPAC must be submitted to the class managers for class plan finalization by February. The PD format is available as an electronic template from class managers and Divisional financial staff.

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FINANCIAL MANAGEMENT ACCOUNTING SYSTEM (FMAS)

128. FMAS is the official record of reference for the DSP. FMAS uses COTS software (SAP R/3) which uses the functionality of seven modules. While each of the modules covers some specific functionality, their combination forms FMAS.

129. Directorate Managerial Accounting and Comptrollership (DMAC) is responsible for the FMAS; in particular for changing the system and user status in the PS module and for exercising a QA/audit function for project data. Project leaders are responsible and accountable for their project data in FMAS. Details of the FMAS system are available on the FMAS intranet site.



Defence Management System Manual

MARCORD 01-02, CMS Miscellaneous Requirements (MR) Guidelines (22 Oct 2002)

Directors, Fleet/Class Managers

Divisional Procurement Managers

Divisional/Directorate Business Planning and Comptroller Staff (DAEBM 2, DMMS 2, DLERM 2)

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PART 3

QUALITY MANAGEMENT

INTRODUCTION

DND QUALITY PROGRAM

1. DND procures a diverse range of materiel and services that, considering the operational role of the CF, require special attention to performance and reliability. The DND quality program is designed to establish confidence in the integrity of the materiel and services provided to DND. This program encompasses all activities related to materiel from the establishment of the item or service’s requirement to its eventual disposal from CF inventory and applies to all personnel involved in materiel management. The DND quality program depends heavily on contractor quality control (QC) and QA.

2. EMTs are directed to apply this quality program to the procurement of materiel and services to ensure that contractual quality requirements are met. This will be done by:

a. Involving people in the quality management process;

b. Using a process based approach to manage activities and resources;

c. Employing a system approach for management;

d. Making continual performance improvement of the organization a permanent objective; and

e. Forming mutually beneficial supplier relationships.

3. Important questions on the quality of products will arise that may involve the insertion of quality specifications in contracts, material review boards, design reviews, acceptance testing, prototype testing, deviations and waiver requests, contract disputes, etc. Thus, the EMT is involved at every level of quality management. EMTs are advised to use the word, “Quality,” in terms of conformance to objective specifications. It should not be confused with product success, excellence, performance or merit. A product that exceeds requirements is not a quality product in the same way as a deficient product.

DEFINITIONS

4. Quality. Quality is defined by the International Organization for Standardisation (ISO) as the totality of features and characteristics of the product or service that bear on its ability to satisfy stated or implied needs.

5. Quality Standards. Quality standards are used in contracts between buyers and suppliers to provide confidence to the purchaser that products provided by the supplier conform to contract specifications. DND’s quality program uses the ISO quality standards. These standards are recognised internationally as authoritative and provide the basis for the development of quality management systems (QMS) within DND and industry.

6. Acquisition reform initiatives rely on established business practices that assure high quality goods and services. Over 100 countries, including Canada, have adopted the ISO 9000 set of quality management standards. The ISO quality management standards ensure that established, documented, and verifiable procedures govern company processes for the design, production, delivery and support of products. The ISO standards can replace various national standards, such as US DoD MIL-Q9858, as well as the (NATO) Allied Quality Assurance Publications (AQAP) series of standards. A few parallel industry sector standards exist, such as QS-9000 for the automotive industry.

7. Quality Management. Quality Management (QM) is a form of risk management and quality programs are initiated in order to reduce the risk (and cost) of non-conforming material being produced. In many cases, this risk can never be eliminated completely or to do so would involve an unacceptable cost. A common solution is for both the buyer and the seller to accept some measure of risk associated with product quality. This is very common where item production is measured in the thousands or even millions, such as ammunition and computer parts.

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8. QM begins in the earliest program or project phases, and includes systematic approaches to the design of materiel and related processes, including manufacturing and support. The result is the integration of management, engineering, and business approaches to consider all elements of the materiel life cycle, including quality, cost, scheduling and usability.

9. Project quality management applies quality management principles to the conduct of projects. It includes “the processes required to ensure that the project will satisfy the needs for which it was undertaken” (PMBOK). It includes all activities of the overall management function that determine the quality policy, objectives, and responsibilities, and implements them by means such as quality planning, QC, QA and quality improvement within the quality system. Activities associated with these processes are explained as follows:

a. Quality Planning. Identifying which quality standards are relevant to the project and determining how to satisfy them.

b. Quality Assurance (QA). Evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards.

c. Quality Control (QC). Monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance.

10. QM should be applied to DND and CF projects, activities, policies, plans, and programs as appropriate.

11. Government Quality Assurance (GQA). The application of quality management constitutes Government Quality Assurance (GQA). Suppliers of materiel and services to DND and the CF are responsible for controlling quality and for supplying materiel and services that conform to contract requirements. DND and the CF perform GQA on contracts, incorporating an assessment of materiel and supplier risk, to ensure that suppliers provide materiel and services that are fit for their intended purpose and meet departmental needs.

12. DND performs GQA by:

a. Ensuring that suppliers develop and use the appropriate quality systems, and that they are committed to the continuous improvement of those systems;

b. Cooperating within the procurement matrix team to improve the quality of all contract-related documents as well as determining and mitigating procurement risks;

c. Obtaining information on suppliers related to the status of development, degree of use, and effectiveness of quality systems;

d. Monitoring the risk of performance failure in either the materiel or the and supplier if the contract involves critical materiel; and

e. Analyzing feedback provided by users on the in-service performance of materiel.

13. Contractual provisions for GQA allow authorized representatives of DND to have access to contractor’s facilities for the purpose of ensuring that contractual provisions for quality are met.

DND QUALITY MANAGEMENT SYSTEM (QMS)

14. The DND QA program is founded on the precept that suppliers to the Department are responsible and accountable for the quality of the goods and services they provide. Due to the complexity, cost and risk associated with acquiring military materiel, DND frequently requires additional assurance that the acquired products will meet the need. The DND QA program is a comprehensive management system designed to provide that assurance. It is important to note that QA by itself does not provide a guarantee of quality and suitability for service. Thus, EMT members, specifically ESMs, along with Life Cycle Quality Managers (LCQMs), must ensure that the attributes of all goods and services to be procured are adequately described in the procurement package. In addition, they must also work closely with CF Supply System (CFSS) personnel to ensure that quality is maintained by establishing appropriate ordering, storage and transportation arrangements.

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15. Within DND, acquisition of materiel and services is performed in a matrix or team environment whereby various organizational elements contribute their specific expertise to the acquisition and the subsequent in-service management. All organizational elements (including suppliers) have a responsibility to ensure that quality, cost and schedule requirements are met. DQA’s responsibility within the procurement team includes the provision of assurance that the quality requirements are identified and met, and, to the greatest extent possible, that cost and schedule are not adversely impacted. DAs, Technical Authorities (TAs), ESMs and ultimately EMT Leaders are responsible for the definition of functional and technical requirements, contract end items, service requirements, statements of work, documentary deliverables, etc. Procurement officers include these requirements in contracting documentation. Industry is responsible for providing quality goods and services. Depot and base personnel have similar roles in verifying the quality of delivered/issued materiel and providing feedback on the effectiveness of the DND QA program.

16. During the conception stage of the materiel life cycle, the QA efforts are directed toward the achievement of quality of design, practicality of manufacture and demonstration of conformance. This is by far the most important stage as quality must be designed and built into a product.

QUALITY ORGANIZATION

17. The Director General Equipment Program Services (DGEPS) is the Quality Assurance Authority (QAA) for DND and the National Quality Authority (NQA) for international QA matters. DGEPS approves and issues instructions implementing the quality policy and provides guidance, advice and oversight for quality, including national-level issues, objectives, and targets.

18. The Director of Quality Assurance (DQA) performs the functions related to the QA Program on behalf of DGEPS. DQA is responsible for:

a. Promoting the value of quality and environmental management systems to suppliers of materiel and services, and informing such suppliers of the expected content of such systems;

b. Participating with other DND stakeholders and contracting authorities to determine materiel risks, to produce quality contract documents, to establish QA and to evaluate bids;

c. Where risk warrants, requiring that bidders of materiel and services provide quality plans that are evaluated as part of the bid evaluation process to assess their ability to provide quality materiel or service;

d. Determining the status of the QMS of a supplier;

e. Analysing the risk of materiel or supplier performance failure;

f. Summarizing the risk of materiel or supplier performance failure, and conducting GQA appropriate to the identified risk;

g. Evaluating information from CF users about the performance of materiel and services provided by suppliers, and taking appropriate corrective action to prevent recurrence of any nonconformity;

h. Developing mutual agreements with other nations for the conduct of GQA; and

i. Involving DQA personnel:

(1) as part of the procurement team as early as possible in the procurement cycle; and

(2) in the risk management process to establish materiel or supplier performance failure.

19. Details of the DQA organization and each section’s role in the DND Quality Program are available from the DQA Intranet site.

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DAOD 3009-0, Quality of Materiel and Services

DAOD 3009-1, Quality Management

DAOD 3009-2, Government Quality Assurance (GQA)

DQA Service Description, Quality Assurance


DQA

ESTABLISHING AND MONITORING QUALITY REQUIREMENTS

INTRODUCTION

20. When introducing new materiel into the CF inventory, assigned TAs and DAs must liaise closely with the LCQMs on the technical specification. All technical data is evaluated for completeness, freedom from irrational or excessive tolerances, and contradictions. EMT Leaders frequently play a key role in “scrubbing down” the operational, technical and logistics requirements of a procurement. Since quality must be designed and built into a product, every effort must be taken to ensure that quality standards are established as early as possible in the acquisition process.

21. The establishment and monitoring of quality requirements is an integral part of the DND QA program throughout the life cycle. Although an adequate level of quality may have been established prior to procurement, it is no guarantee that the quality will be maintained during the life cycle. In order to ensure that the intended quality levels are maintained, members of the EMT, including ESMs, SMs and QA staff, must coordinate their respective QA activities.

22. QA activities are divided into five stages:

a. Quality and Management Systems Leadership;

b. Quality Contracting;

c. Management System Evaluation;

d. Quality Surveillance; and

e. Quality Performance.

QUALITY AND MANAGEMENT SYSTEMS LEADERSHIP

23. The goal of this stage is to ensure providers of goods and services develop and implement appropriate management systems and be visibly committed to continuous (quality) improvement in all facets of their operation. The term management system includes quality management, QA, QC, inspection systems and environmental management.

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QUALITY CONTRACTING

24. The second stage involves a number of “front-end” activities aimed at improving the quality of all contractual documentation. Acquisition of defence equipment inherently involves risk because military equipment is usually not appropriate to the civilian marketplace where wide usage and market pressures would ensure quality. Quality contracting in DND aims to maximize the probability that equipment will meet its performance objectives, be delivered on time and within cost.

25. The correctness of the documentation that defines a product is vital to the delivery of a conforming product, as is the assignment of an appropriate Quality System Requirement (QSR). The Quality Assurance Team Leaders (QATLs) and the LCQMs are the principal DQA representatives responsible for quality contracting activities associated with:

a. Projects;

b. IP;

c. Reprovisioning;

d. R & O;

e. NP;

f. Regional procurement originating at the PWGSC national office;

g. European region procurement;

h. Request for Goods and Services (RGS);

i. Statement Of Requirement (SOR);

j. Statement of Work (SOW);

k. National bid solicitation documents; and

l. Standing offers originating at the PWGSC national office.

26. The Quality Assurance Managers (QAMs) are the principal DQA representatives responsible for quality contracting activities associated with:

a. Regional procurement originating at a PWGSC regional office;

b. Local procurement;

c. Regional bid solicitation documents;

d. Standing offers originating at a PWGSC regional office; and

e. Call-ups on national and regional standing offers.

27. The QATLs, LCQMs, QAMs and Quality Assurance Representatives (QARs) are the principal DQA representatives responsible for quality contracting activities associated with contracts.

MANAGEMENT SYSTEM EVALUATION (MSE)

28. The goal of this stage is to obtain comprehensive information on any suppliers of goods and services (both private and public) related to their quality and environmental management systems. The information obtained is updated on a regular basis by conducting periodic evaluations of the supplier.

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QUALITY SURVEILLANCE

29. The goal of quality surveillance is to conduct selective surveillance on contracts for critical products with an identified risk. A number of criteria related to technical complexity, supplier capability, supplier quality system compliance and effectiveness, and other procurement related risks are considered when conducting risk analysis.

30. DQA will conduct selective surveillance on contracts for complex and critical products with an identified risk. For each acquisition the LCQM, in conjunction with the TA and Procurement Authority, will conduct a risk analysis using a number of criteria related to such things as technical complexity, supplier capability, criticality of failure (intended use) and procurement risk. Based on the risk analysis, the LCQM will prepare specific guidance on what surveillance is recommended and identify any specific concerns the Department may have. The CF QAR will prepare and execute an appropriate surveillance plan in accordance that guidance. Surveillance will not normally be conducted on contracts for non-complex, non-critical products.

31. In some cases, local DQA resources may not be adequate to provide the QA services required by the EMT/Project Leader. The activity also may require on-site services beyond those normally provided by DQA. In those cases, the responsibility for providing personnel resources with the appropriate skill and knowledge lies with the EMT/Project Leader. Since the availability of such personnel and the funding to support them usually are in very short supply, the EMT Leader’s business case must be very solid.

32. In support of procurement activities and in conjunction with the appropriate LCQM, the following items should be reviewed:

a. Technical Data Packages (TDPs). It must be ensured that all necessary specifications are present, and that all documents are in accordance with the approved configuration baseline.

b. Verification Documentation. All specified requirement verification documentation (e.g. tests, analysis, demonstrations). All functional requirement verification methods must be identified.

c. The Associated SOW. All aspects of a requested service must be fully and clearly defined in terms of:

(1) The standards and specifications to be met;

(2) The precise nature of the materiel or services to be rendered;

(3) The extent of funds to be expended; and

(4) Product Qualifications and Qualified Products Lists (QPLs), QA standards, associated risks, inspection procedures and QA scope and procedures for R & O.

d. All the deliverables. It must be ensured they fully meet contract requirements.

33. In conjunction with the appropriate SMs, ESMs shall review shelf and component life, packaging and handling procedures, and transportation and storage procedures. TAs will ensure that materiel is defined by an approved and up-to-date TDP. Furthermore, they will ensure that all work performed on DND materiel during the in-service stage is fully defined.

QUALITY PERFORMANCE

34. The last stage is designed to provide a forum for action on any feedback received from users on the performance of materiel in-service. Quality performance services may consist of any or all of the following activities:

a. Communicating with users to encourage quality performance feedback;

b. Receiving, compiling and analysing feedback from users;

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c. Discussing feedback with the users to validate the information;

d. Taking resolution action which may consist of one or more of the following;

(1) Recommending changes to DQA Service Descriptions and/or Service Level Procedures;

(2) Taking corrective action for nonconforming services;

(3) Recommending changes to current or future contract clauses;

(4) Recommending changes to product specification requirements;

(5) Recommending action to the Contract Authority to resolve contract requirements with the supplier; and

(6) Recommending quality surveillance at the contractor’s facility.

35. Product and supplier data is recorded in the QAIS (Quality Assurance Information System) for use in risk analysis and planning quality surveillance activities. Quality performance feedback may take the form of complaints, requests for deviations and waivers, quality observations or information gathered through supplier quality performance reviews. The results of this service provide confidence to the EMT that there will be effective resolution of any quality performance feedback and improved QA services.

INTERFACE WITH DND QA STAFF

36. DQA LCQMs and QARs provide valuable assistance to EMT members at all stages of the equipment life cycle. At the pre-contractual stage, they provide feedback on whether Procurement Instruments (PIs) and contract requirements are complete and valid. They are also responsible for specifying the appropriate quality system standard(s) for the goods or services being procured and providing information on contractor performance. During the production and delivery phase, they provide quality surveillance and serve as the ESM’s on-site eyes and ears. It should be noted that quality is the responsibility of the contractor. In most cases, the product is not physically inspected by DQA. DQA is responsible for GQA and this is done mainly by evaluating the contractor’s control processes and procedures and performing surveillance activities based on identified risks. In certain cases, the services of the Quality Engineering and Test Establishment (QETE) may be obtained for verification of conformance to specific product requirements.

37. EMT should contact the appropriate LCQM to coordinate technical definition activities in order to ensure an effective QA program. DQA should be involved with:

a. Design reviews to determine the completeness of definition, the consideration of product liability and methods of demonstration, maintainability, reliability, performance, human engineering, etc;

b. Determining contractual quality system requirements;

c. Establishing criteria for evaluation of tender proposals for compliance with quality system requirements;

d. Ensuring that all risks have been identified and evaluated for an adequate surveillance plan;

e. Ensuring that action is taken to correct non-conformance and eliminate their causes; and

f. Providing assurance that the material is maintained during storage, issue and transportation.

38. DQA staff should work closely with EMT members including ESMs, TAs, PMs and Supply Managers (SMs). DQA can provide valuable guidance throughout the various stages of the materiel life cycle and project management phases. DQA input is absolutely essential if effective QA is to be established and maintained.

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DAOD 3009-0, Quality of Materiel and Services

DQA Service Description, Quality Assurance

DQA Service Procedure, Facilitation/Consultation

DQA Service Procedure, Management System Evaluation

DQA Service Procedure, Quality and Management Systems Leadership

DQA Service Procedure, Quality Contracting

DQA Service Procedure, Quality Performance

DQA Service Procedure, Quality Surveillance


Materiel Group Instruction (MGI) 8-2, Division of Responsibility Between DND and PWGSC for the Quality Assurance of Materiel and Services

CFQARs

LCQM

ESTABLISHING AND MONITORING PRODUCT QUALIFICATION

INTRODUCTION

39. Product qualification is the process of verifying, prior to and independent of procurement, that materiel produced by a manufacturer using a defined process, at a specific plant, conforms to the requirements of a particular product specification or standard. Rather than individually qualify all procurements, product qualification approves the product (or the manufacturer) prior to the procurement. The products of potential suppliers are tested in accordance with the appropriate specification(s) or standard(s), and testing is periodically repeated over the lifetime of the qualification. Products that pass testing are listed on the QPL.

40. It is also possible to list the manufacturer on a similar preferred supplier’s list called the Qualified Manufacturers’ List (QML). The QML specification allows the manufacturer to implement, best commercial practices, to the maximum extent possible while providing a product that meets military performance needs.

41. The fact that a product has been evaluated and placed on a QPL/QML signifies only that at the time of evaluation, the manufacturer could make a product that met the specification requirements and is eligible for bidding on a tender to that specification. Inclusion on a QPL/QML does not relieve a manufacturer of the contractual obligation to deliver items meeting all specification requirements, or guarantee product acceptance under a contract. Qualification and listing on a QPL/QML does not eliminate the need for inspections during and after manufacture or for adherence to the maintenance of adequate quality control procedures.

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PRODUCT QUALIFICATION

42. A prerequisite for product qualification is the preparation and approval of a written specification. This document must identify all parameters and conditions for qualification. EMTs contribute to the DND product qualification system by assessing qualification test results, and employing QPLs and/or QMLs in contract demands. They also participate in the product qualification process by:

a. Requesting the QAR, through the NQA, to perform facility evaluations and witness testing as required;

b. Providing technical advice and guidance to the NQA, QARs, and the manufacturer;

c. Participating in facility evaluations;

d. Assessing product test results; and

e. Requesting the use of QPLs/QMLs in contract demands.

REVIEWING AND UPDATING QUALIFIED PRODUCTS LISTS (QPLs) AND QUALIFIED MANUFACTURERS’ LISTS (QMLs)

43. The EMT, to assess the current status of qualified products, reviews all existing QPLs/QMLs. If the qualification requires the periodic provision of test data, the EMT verifies the validity and receipt of that data. Product qualifications are monitored by the EMT to identify if any of the following events have occurred:

a. A product specification has significantly changed;

b. The manufacturer has made significant changes in a product formula or process;

c. The qualification has been in effect for five years or longer;

d. The product is being manufactured at a facility other than that which was originally qualified;

e. There has been a change in manufacturer’s name or ownership;

f. There is a statement in the product specification requiring requalification;

g. A product has been discontinued; or

h. Other circumstances that may warrant requalification.

44. As a result of monitoring action, EMTs may initiate requalification through the NQA. Coordination with the manufacturer and the NQA is necessary to arrange any testing and validation. This is accomplished by:

a. Informing the manufacturer of the request through the NQA;

b. Requesting Directorate Common Procurement Supply (DCPS) and DQA assistance as appropriate; and

c. Reviewing test results.

45. Monitoring may also identify products that should be removed from the QPL. This is accomplished through the NQA by:

a. Informing the manufacturer of the decision through the NQA;

b. Informing all DND organizations, and other interested government departments, of the decision; and

c. Ensuring the QPL/QML is amended.

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A-LM-002-001/AG-000, Principles and Procedures Governing Qualification of Products in DND

A-LM-002-002/AG-000, Product Qualification Application Procedures for Canadian Manufacturers

A-LM-505-202/JS-001 (MMI 1202), Product Qualification

DQA

PERFORMANCE MEASUREMENT

INTRODUCTION

46. QM is not restricted to the production and acquisition of physical items of materiel, but can be applied to any product or process. The intent of the ISO 9001 QMS can be summed up as, “Say what you do, do what you say, check it, and act on the difference.” The application of this methodology to organizational planning processes is termed “Performance Measurement.”

BACKGROUND

47. In 1995, the Federal Government introduced the EMS which emphasises improving program delivery by reallocating resources within Departments and across government programs. As a result of the introduction of the EMS, Government Departments/agencies must now submit annual business plans (including performance indicators) and subsequently report on their annual performance. At the departmental level, the DPG document provides strategic direction to Level 1 managers. For details on strategic performance measurement, refer to the Defence Planning and Management intranet site.

48. Using the DPG, ADM(Mat) provides strategic direction and reference funding levels to Level 2 organisations (refer to Figure 3-1). Subsequently, Level 2 organisations provide similar direction to subordinate level organisations. This continues down the organizational structure to the EMT level in accordance with divisional business planning policy.

49. Resource plans are then developed across all levels based on business priorities identified in the strategic direction. Level 3 and subordinate level organizational units then manage their business performance based on their respective resource plans and any performance information gathered. Some performance information will roll-up to higher organizational levels to demonstrate their contribution to the Materiel Group strategic objectives.

DEFINITION

50. Performance measurement is the process of collecting, analysing, evaluating, and communicating information relative to an organization’s performance and results. Effective performance measurement provides information for the planning and control of organisations (including EMTs), and is a means of ensuring that the direction, efforts and results of an organization are in alignment. Performance measurement activities include:

a. Selection and definition of specific performance measures and indicators;

b. Establishment of performance targets;

c. Selection of appropriate measurement reporting tools; and

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d. Continuous monitoring of actual performance against targets and identification of actions to rectify unfavourable performance deviations.

Set Departmental Direction & AllocateResources Top-Down

Bottom-Up

Set Level 1 Direction, Allocate Resources& Identify Performance Indicators and

Targets

Performance InformationManageBusiness Performance

DND/CFDND/CF

Other CCs CC7Materiel Group

DGMEPM DGLEPM DGAEPMDGEPS

(including DGAPM)

Set Level 2 Direction, Plan Resources &Identify Performance Indicators and

Targets

COS Mat J4 Mat/DG Log

DGIIP

DMSDP

COS Mat

Figure 3-1 Departmental Performance Management Framework

51. Project performance measurement may be conducted by organisations external to the project. The staff of the Office of the Auditor General performs audits that may include a project performance measurement dimension. These reports then become a mechanism for controlling project quality and planning improvements to the overall quality of the project.

PERFORMANCE MEASURES

52. Performance measures bring management together to effect informed business decisions. They cannot be introduced in isolation and must be based on strategic direction from Materiel Group, EPM and Directorate perspectives.

53. To be useful, the measures must be definable, defensible and understood. They must influence the achievement of long-term objectives and be balanced against short-term objectives. Analysis of performance information should trigger action if any variances from target levels exist. In most cases, the majority of performance indicators can be derived from existing systems and processes.

PERFORMANCE MEASUREMENT ACTIVITIES

54. The organisation’s management team begins by working together to translate its strategy into specific strategic objectives. Objectives should be explicitly and clearly defined and accepted based on team consensus. This process should clarify the strategic objectives and identify the critical success factors for each one. Once high-level objectives and measures are understood, local objectives are established which support the overall strategy. “Local” improvement efforts thereby are aligned with the overall organisational success. Communication

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with organisational personnel serves to signal to all employees the critical objectives that must be accomplished if an organisation’s strategy is to succeed. Ultimately, the performance measurement framework not only measures change, it also fosters change. Performance measurement has its greatest impact when it drives organisational change and provides focus and integration for continuous improvement, reengineering and transformation programs.

55. The desired outcomes are then tracked against the actual outcomes. This is perhaps the most critical step. Based on this comparison, the organization can then more easily identify mechanisms and provide resources for achieving those outcomes. A comparison of the desired performance targets with current performance levels establishes the performance gap that strategic initiatives can be designed to close. This also provides metrics that management can monitor to adjust the implementation of their strategy and if necessary make fundamental changes to the strategy itself.

EFFECTS OF PERFORMANCE MEASUREMENT

56. The implementation of a performance measurement process in the EMT will result in process improvements and an improved focus on EMT activities. Specific results include:

a. Clear priorities that focus the effort of management and staff. There is an awareness and understanding of the direction in which the organization is headed;

b. Measured performance against objectives. Clearly stated goals and targets allow management to take corrective action when necessary;

c. A means to “take the pulse of the organization.” This is an essential tool for managing operations;

d. More complete and defensible resource planning with clear links to organizational priorities; and

e. Established accountability. Organizations are accountable and responsible for their business results.

SELECTING APPROPRIATE PERFORMANCE INDICATORS

57. The selection of performance indicators is an important step. Whatever the process adopted, the selected indicators should have the following characteristics:

a. Actionable. Should trigger action from management toward achievement of a business objective.

b. Quantitative (Preferred) versus Qualitative. Should be quantifiable for comparison purposes.

c. Results-oriented. Should be focused on measuring the results or outcomes that the organization is trying to achieve.

d. Controllable. Should be within the sphere of control of the organization, especially if the organization is going to be held accountable for the results.

e. Suitable for Benchmarking. Should be able to use the indicator(s) as a benchmark in order to determine how the organization compares to another organization with a similar business profile.

f. Cost Effective. The benefits of the performance information to management should outweigh the cost of collecting and reporting the performance information.

g. Ability to Align Employee Behaviour to Strategies. Ultimately, the performance indicator should serve as a tool to align employee behaviour to organizational objectives.

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Key Evaluation CriteriaKey Evaluation Criteria

Performance Indicators

Actio

nabl

e

Qua

ntifi

able

Resu

lts-

Orie

nted

Cont

rolla

ble

% of SLAs negotiated

N/A Not applicableLow Medium HighDegree to which Performance Indicatormeets Evaluation Criteria:

Yes, since the organization cantake action if SLAs negotiated

are below set target. Yes, since it isrelativelysimple to keeptrack of thenumber of SLAsnegotiated.

Not totallyfocused onresults.Negotiating anSLA will notguarantee thatthe servicelevels within itare respected.

Yes, since thenegotiation ofSLAS is underthe control ofanorganization,assuming thecustomer iswilling tonegotiate.

Figure 3-2 Example Evaluation Framework

BALANCED SCORECARD APPROACH TO PERFORMANCE MEASUREMENT

58. The balanced scorecard provides EMT Leaders and their superiors with a comprehensive framework that translates an organization’s vision and strategy into a coherent set of performance measures. These performance measures present a view of the organization from the financial, customer, internal business process, and innovation and learning perspectives. The Balanced Scorecard helps an organization to:

a. Understand progress toward an objective;

b. Communicate status of change;

c. Determine success or failure;

d. Define future strategies;

e. Establish benchmarks; and

f. Demonstrate value-added.

59. By articulating the outcomes that the organization desires and the drivers of those outcomes, management can channel the energies, abilities, and the specific knowledge of people throughout the organization, toward achieving the long-term goals of the organisation.

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60. The balanced scorecard is a management methodology that seeks to determine what is important to the organization’s success, and then to provide measurements of the key factors (Key Performance Indicators [KPIs]) to accomplishing that success. Corporate Reports are the conduit for data (information) that are used to measure the performance. The results of the measurements are captured in simple displays, called Dashboards, where lights are used to indicate good (green), not so good (amber), or bad (red) results. Thus senior management can see a wide range of performance issues at a glance, and determine where corrective effort (more resources, or some other remedy) is required. The best Balanced Scorecards will tell the story of the organization’s strategy and cause the overall performance to be managed such that the stated mission is accomplished.

Begin by Linking Measurements to Strategy

Statement of Vision

1. Definition of Business Unit2. Mission Statement

Statement of Vision 1. Definition of Business 2. Mission Statement 3. Vision Statement

To My Shareholders

Financial Perspective

To My Shareholders

Financial Perspective

To My Customers

Customer Perspective

To My Customers

Customer Perspective

With My InternalManagementProcesses

InternalPerspective

With My InternalManagementProcesses

InternalPerspective

With My Ability to Innovate and Grow

Innovation and Learning

Perspective

With My Ability to Innovate and Grow

Innovation and Learning

Perspective

THE BALANCED SCORECARDTHE BALANCED SCORECARDTHE BALANCED SCORECARD

What is My Vision of the Future?

If My Vision Succeeds, How Will I Differ?

What Are the Critical Success Factors?

What Are the Critical Measurements?

Figure 3-3 Balanced Scorecard Structure

PERFORMANCE MANAGEMENT OPERATING GUIDELINES

61. To initiate an effective performance measurement framework within an EMT, certain operating guidelines will need to be agreed upon in order to:

a. Assist in clarifying and communicating the vision of the organization to all member of the EMT;

b. Provide an overriding set of guidelines which define accountability and management relationships;

c. Provide a basis for resolutions of disputes in roles and responsibilities; and

d. Focus EMT staff on key objectives and goals.

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PLANNING AND BUDGETING

62. Each EMT Leader is responsible for developing the annual resource plans as part of the input to Directorate and Divisional business plans. These plans are based on the business objectives and critical success factors at Level 3. All performance targets are agreed between Directors / EMT Leaders and included in the business plan. These targets may be adjusted if deemed appropriate.

MEASUREMENT AND REPORTING

63. Performance indicators will be balanced between financial and non-financial information. Some Level 2 performance indicators will be defined across all Level 3 for use at Level 2. In addition to the established Level 2 performance indicators, Level 3 managers or EMT Leaders may define additional indicators of their own for internal management. Details are available from the divisional BMT.

64. Customer satisfaction results should be assessed on the SLA parameters agreed between the EMT Leaders and their customers. Customer and employee satisfaction performance results will be made available at the beginning of the business planning annual cycle.

PERFORMANCE MEASUREMENT IN ACTION

65. The performance of the Materiel Group will be gauged by the resource utilisation forecasts, performance measures, indicators and standards set forth in the business plans. Actual resource usage and performance will be measured and compared to planned resource utilisation and performance standards. Periodic reports on performance will be produced for internal use. Materiel Group managers and ultimately EMT Leaders then consider the variance between actual and planned performance and assess its significance.

66. If a variance is significantly large, individual managers and EMT Leaders investigate to determine the cause of the variance and plan to reduce the variance through a variety of means. Managers / EMT Leaders can reallocate resource inputs, modify or eliminate existing sub-activities, processes, or outputs, or change performance standards in consultation with customers. Through such changes, managers / EMT Leaders can influence performance against plan. Should major changes be required, further adjustments to the business plan may be required.



CFAO 2-18, Performance Measurement for Defence Activities

Cost/Schedule Performance Management Standard (C/SPMS) (CGSB 187.3-93)

DMS Manual, Chapter 5


DGSP

Divisional BMTs

DMASP 3 (Project Performance Measurement)

DMASP 6 (Equipment Performance Measurement)

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PART 4

SYSTEMS ENGINEERING

OVERVIEW

1. Systems engineering is both a technical and a management process. It is defined in DAOD 3023-0 as, “the interdisciplinary approach for evolving, verifying, and supporting an integrated and balanced set of defence system product and support solutions that satisfy customer needs.” This includes the application of managerial, scientific, engineering and technical effort to:

a. Transform an operational requirement into a description of system performance parameters and a system configuration, through an interactive process of definition, synthesis, analysis, design, test and evaluation.

b. Integrate related technical parameters and ensure compatibility of all physical, functional and project interfaces in a way that optimizes the total system definition, design, and life cycle cost.

c. Integrate reliability, maintainability, security, survivability, human and other factors into the total engineering effort to meet cost, schedule and technical performance objectives.

2. Systems engineering provides materiel development, acquisition, in-service, and disposal support in response to CF requirements, in the most cost effective and efficient manner possible. In the early stages, engineering advice can guide operational ECS staff and assist them to understand the materiel costs associated with each desired operational requirement. During acquisition, systems engineering expertise assists in the contractual definition of the system and the evaluation of potential suppliers. As the supply contract is implemented, DND systems engineers provide technical guidance to the Sponsor, Project Management Office (PMO) and PWGSC on the contractor’s technical progress and provide early warning of potential problems during development that could impact the overall equipment delivery, supportability, or disposal. Systems engineering skills are also required to establish the maintenance infrastructure in order to support the new equipment and ensure that the maintenance tasks, lines, levels, concepts, and vehicles are meaningful in the context of the overall life cycle cost. During the in-service phase, equipment modifications will be needed to improve the equipment performance and supportability, or to adapt the equipment for a new role or environment. Throughout the life cycle, systems engineers will be preparing for the eventual disposal of the equipment. All this will be done with a mindset to optimize the overall life cycle cost of the asset in accordance with OWSM.



DAOD 3023-0, Systems Engineering Policy

MA&S Desktop (to be renamed MAT KNet in the near future)

Systems Engineering Handbook

DMASP 5-2

ENGINEERING MANAGEMENT

INTRODUCTION

3. As stated earlier, systems engineering is both a technical and a management discipline. Engineering management is initiated during the conception stage of a system’s life cycle, as operationally oriented requirements staff seeks technical advice. It continues through acquisition as a preferred technical solution is developed and procured, and continues throughout the in-service stage as part of product improvement or engineering change activities. It concludes with the safe disposal of the equipment.

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4. Engineering management consists of the effort expended to plan, organize, lead, and control the engineering activities of the EMT. Figure 4-1 depicts the range of these efforts. Typically, an EMT Leader will direct and manage the efforts of specialist engineers, scientists, technologists, technical officers, service representatives, investigators, logisticians, operators, program managers, and technicians.

5. Systems engineering interacts with, supports, and is supported by, many related system management functions, including:

a. Requirements Management;

b. CM;

c. Supply Management;

d. ILS;

e. Financial Management; and

f. Quality Management.

SCOPE OF ENGINEERING MANAGEMENT

6. The scope of engineering management effort will vary significantly depending on whether the acquired system is a mature design or under development. The role of the specialist engineers, technologists and technical specialists is to plan activities related to their speciality, carry out specialized technical work, select appropriate specifications and standards, define requirements for design and validation, and audit the designs for compliance. Some of this expertise is resident in the EMT, but it also resides in specialized DND/CF organisations and contractors.

ENGINEERING ACTIVITIES

7. Engineering is traditionally viewed as part of acquisition, but it also exists in the other phases as well. R&D activities in the conception phase, product improvement or engineering change activities in the in-service phase, and technical assessments in the disposal phase all represent the application of engineering. Engineering must interact with, support, and be supported by, many related ILS functions in order to ensure system supportability. Engineering activities associated with the LCMS can be grouped into five progressive categories. These are:

a. Specification;

b. Design;

c. Analysis;

d. Production; and

e. Test.

8. These five principal activities shown in Figure 4-1 interact in complex patterns, depending on the location of the project in the system’s life cycle and the actual engineering work that is being undertaken. The overall development of a complex system takes place in an orderly sequence. First, requirements for new operational and functional capabilities are translated into specifications. Designs are then produced to satisfy those specifications, which are analysed and tested. Compliant designs are then built, tested and fielded.

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Functional /Performance

ProductSpecifications

Ops Conditionsand Limits

Calibration& Alignment

ServiceabilityCriteria

InspectionTechniques

Specifications& Standards

TestRequirements

Sentencing

Specify

Concept

Preliminary

Prototype

Production

Modification

Design

Load(Mech/Elec)

FMECA

RAM

RCM

Failure /Accident

Investigation

ManufacturingRequirements

LORA

Analyze

Breadboard

Proofof Concept

TestModels

Final

ModificationKits

ManufactureTest

Models

Prototype

Produce

Concept

Prototype

Fit

Interoperability

Integration

Properties(Mech/Elec)

Interchangeability

Acceptance

Test

EngineeringActivities

E&SMP

Specs forEng Contracts

Life ExtensionStudies

ConfigurationManagement Plans

EngineeringDrawings

EngineeringSpecifications

CFTOs

TestReports

EngineeringAnalysis

Eng Policies& Procedures

TypicalDocumentation

EngineeringManagement

Figure 4-1 Engineering Management Activities and Typical Documentation

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9. However, over the entire system life cycle, these five activities recur, particularly where new capabilities are incorporated into fielded systems. Less obvious is the fact that an activity ostensibly classified as “Analysis” in a high level WBS may involve any or all of the other four activities as a sub-component of that activity. For instance, the required analyses need to be specified. Similarly, during production certain tests may be necessary to ensure that partly finished products conform to specifications. Recognition and understanding of these interrelationships is a key to effective engineering management.

10. For a list of the MA&S systems engineering processes, refer to the Systems Engineering Overview available from the MA&S Desktop (MAT KNet).

ENGINEERING AND SUPPORT MANAGEMENT PLANS (E&SMPs)

11. EMTs and PMOs often prepare E&SMPs to establish control over the ways and means by which specifying, designing, analysing, testing and production activities are conducted. In-service E&SMPs are derived from the original E&SMP used during acquisition.

12. E&SMPs may include the specific planned engineering agenda for a weapon system, and/or the procedures for handling each and every kind of engineering activity and transaction conducted by the EMT. Parts of the E&SMP may include such management documentation as Weapons System Development Plans, WSSPs and Equipment Support Plans (ESPs). Elements of an E&SMP that are common to more than one weapon system may be regulated through divisional and directorate wide procedures and instructions.

RESEARCH AND DEVELOPMENT (R&D)

13. DRDC’s primary business line is R&D for the CF and DND. The majority of DRDC resources are therefore directed toward defence R&D. Their activities are defined annually through SLAs with each of the five DRDC client groups: Maritime, Land, Air, Command and Control Information Systems, and Human Performance. Elements of this business line are funded from various sources, including the Technology Demonstration Program, the Technology Investment Fund, the Defence Industrial Research Program, the DND/NSERC Research Partnership Program, and the Defence Communications Program. The EMT can also fund additional activities that do not fall within the scope of the SLA. R&D can be applied toward new defence capabilities or the enhancement of existing DND assets.

ENGINEERING STANDARDS AND SPECIFICATIONS

14. Definitions. Standards and Specifications are the vehicles for the clear and concise statement of equipment requirements. Specifications and standards are technical documents that are written in an explicit, concise and unambiguous language using a standard form. Specifications are included in procurement documents and standards are often quoted in specifications. Judicious use of standards serves to promote the effectiveness of the materiel and services used in support of military operations and to decrease support costs by standardising components thereby decreasing inventory holdings. Standards are defined as a document that establishes engineering and technical limitations and applications for items, materials, processes, methods, designs and engineering practices, and which is written by and for technical experts. A standard is independent of a final equipment configuration, may refer to other documents, and is frequently cited in specifications.

15. A specification is defined as a document intended primarily for use in procurement, which clearly and accurately describes the essential and technical requirements for items, materials, or services, including the procedures by which it will be determined that the requirements have been met. Specifications for items and materials may also contain preservation, packaging, packing and marking requirements.

16. As well as product specifications, documentary specifications also form a large part of the EMT’s workload. Almost every type of product and service acquired by the EMT needs to be accompanied by its own set of operational, technical and logistical documentation. There also are business processes, such as review meetings, which require the preparation of meeting agendas, subject matter summaries, presentations, minutes, etc. The specifications for all of these forms of documentary deliverables are provided in a standard format known as Data Item Descriptions (DIDs), which are organized into Contract Data Requirements Lists (CDRLs). Standard DIDs are available for certain common types of documentation normally prepared by contractors.

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17. Types of Standards and Specifications. DND classifies standards under three broad categories:

a. Operation Standards. Standards that affect future and/or current military practices, procedures or format (e.g. concepts, doctrine, tactics, organization and logistics training).

b. Materiel Standards. Standards that affect the characteristics of future and/or current materiel, including production codes of practice and materiel specifications (e.g. weapon systems, support systems, assemblies, subassemblies and spare parts).

c. Administrative Standards. Standards primarily concerned with the terminology that applies to both the operational and materiel fields, including standards that facilitate alliance administration in fields without direct military application (e.g. reporting of economic statistics).

18. Specifications are classified in the following categories:

a. System Specifications (A Spec). Defines the mission requirements of large complex systems.

b. Development Specifications (B Spec). Defines the development of an item, including assemblies, components and materiel.

c. Product Specifications (C Spec). Defines assemblies, subassemblies and parts intended primarily as components of equipment and inventory items.

d. Process Specifications (D Spec). Specifies techniques and procedures to be performed on equipment, products and materiel.

e. Material Specifications (E Spec). Describes raw materials, mixtures, cleaning agents, paints, and semi fabricated materials which are use in the manufacture of products.

f. General Specifications (F Spec). Defines requirements common to a class of materiel by including all such requirements related to a series of different types, classes, grades or styles in one specification.

g. Equipment Specifications (G Spec). Defines complete units below the system level.

19. Specification types C, D, E, and G may be oriented in one of four different ways:

a. Performance Oriented Specification. This orientation expresses requirements in terms of what is expected of the materiel, leaving details of the design and manufacture to the contractor. In this case the Government specifies the performance and the contractor assumes the responsibility for the design and construction in meeting performance requirements.

b. Design Oriented Specification. This orientation specifies all the data necessary to manufacture an item. This may include details of the materiel, composition, physical and chemical requirements, dimensions, test methods, and inspections. The design-oriented specification is used when satisfactory materiel is available and standardized, and where flexibility is important. Performance requirements should be compatible with design, but in the event of a conflict, design requirements will prevail.

c. Combination Oriented Specification. This orientation contains aspects of both performance and design orientations. Since there is no clear way to emphasize either the performance or design characteristics of the specification in case conflicts arise, it is a form that should be rarely used.

d. Purchase Description Oriented Specification. This orientation is used when purchasing certain types of items in which short lead-time, relative cost, and supply considerations are factors, and where the quality is very well established. A purchase description oriented specification may be used for:

(1) Simple, easily manufactured items;

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(2) Catalogue items, either off-the-shelf or current production with slight modifications such as colour or marking;

(3) Simple, low-volume items of a non-recurring nature; and

(4) Limited or single purchases of one-time OTS items of known quality.

20. Preparing/Selecting Specifications and Standards. Within the EMT, ESMs or Systems Engineering Managers (SEMs) are responsible for the selection and/or preparation of those specifications and standards necessary to ensure that the materiel or services being procured by them will fully satisfy the intended operational requirement. Specifications are necessary whenever any doubt exists as to the precise nature or characteristics of the item being procured. As a rule, DND does not develop new specifications or standards if acceptable ones already exist, as in-house development is generally not cost-effective.

21. Typically, operational and performance requirements are reviewed for any materiel to be procured, and a decision is taken on what specifications and standards are required to support the procurement. A key factor in selecting the required level of specification is the equipment’s concept of support. A review of existing military and commercial specifications is conducted to identify those specifications that will satisfy the needs of the procurement. Care must be taken before selecting non-departmental specification for use in procurement.

22. Suitable existing standards are selected based on the following priorities:

a. Priority 1. Standards reflecting international standardisation agreements to which Canada is a signatory.

b. Priority 2. Standards issued by national associations.

c. Priority 3. Standards issued by government and departmental agencies and associations.

d. Priority 4. Standards issued by industrial technical associations.

23. Under the acquisition reform initiatives, a greater emphasis is placed on the use of commercial and international standards within DND. Where an acceptable existing specification or standard cannot be found, a new one may be prepared in accordance with the format and content detailed in A-LM-505-480/JS-001 (MMI 1480) and D-01-300-100/SG-000.

24. Any newly developed standard is registered in the National Defence Index of Documentation (NDID) in accordance with the procedures detailed in A-AD-100-100/AG-000 (Chapter 9). Registering standards in the NDID system promotes standardisation and provides the opportunity to benefit from reuse.

25. Within DND, existing specifications and standards can be retrieved from a library of military, commercial and international documentation. This is available from DTICS. The data is fully cross-referenced and can be retrieved by subject, title or by number. Included in this resource is the US DoD Index of Specifications and Standards (DODISS), an unclassified alphabetical/numerical directory of all US military, government and adopted commercial specifications and standards including qualified products lists. DODISS can be accessed using the internet.

26. EMT Guidance. The EMT Leader (Project Manager) and Project Director oversee the process of converting operational and other requirements into technical, performance and functional specifications. This activity can equally arise whether the EMT Leader is serving in a PMO, or in support of in-service systems. The preparation of system specifications is a serious responsibility in that both over-specifying and under-specifying the equipment can lead to inappropriate acquisitions that do not satisfy either the capability deficiency or an optimized life cycle support program.

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Figure 4-2 Acquisition Cost as a Function of Specification Detail

27. One difficult aspect of converting requirements into specifications is striking a balance between over-specifying and under specifying the requirement (see Figure 4-2). Over specifying a requirement will reduce the number of available options and possibly trap DND into a single technological solution. This would restrict DND’s ability to control the life cycle cost of a capability and possibly make the capability unaffordable. Under specifying provides a very wide set of solutions, not all of which would meet the original intent. For example, the requirement to “present a 1x3 tabular colour display of status information” could be met by a software application on a computer, a traffic light, or a white board and set of markers. Under-specifying a system will naturally lead to a low acquisition cost, but may not provide the intended capability, forcing either a redesign, refurbishment, or a new procurement project. In any case, the overall life cycle cost of the capability is not optimal and in the case of an under-specified project, there is the risk that the equipment or system will not meet the expectations of the system. Thus it is important to find the correct level of detail for each specification.

28. A key process in the preparation of specifications is requirements management. Details are available from the MA&S Desktop (MAT KNet). Requirements management is a discipline involving the rigorous and methodical capture, tracing, analysis and management of requirements data throughout the life of the project. Requirements management establishes traceability from operational requirements, to specifications, to tests and evaluations, to product acceptance, and uses requirements attributes in managing the project. The document used to capture the requirements management process is the Requirements Management Plan.

29. Product specifications often involve a wide range of technologies and support specialities. However, each team member’s desire for a detailed statement of their own area of responsibility can lead to the development of internal conflicts and contradictions in the overall specification. The EMT Leader must be prepared to set the balance between the various technologies and support areas to achieve a coherent and comprehensive equipment product specification.

Level of Specification Detail

Cos

t

Low

High

High

Rework Costs

Engineering Costs

Total Acquisition CostOptimal Acquisition Cost

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ENGINEERING DESIGN

30. General. The EMT has a limited role in design activities associated with DND materiel. Most design work is accomplished by contract with industry with the EMT providing technical input and review of the design products.

31. Engineering design activities take two forms. New designs are typically initiated to satisfy a unique military requirement. Alternately existing designs, defined in an approved configuration baseline, are used as the basis for the preparation of new designs. Some of these new designs lead to permanent changes in the equipment baseline and some pertain to a limited segment of the population of an item. Some design efforts are very significant and some are trivial. Over the equipment’s life cycle, numerous design changes may be introduced. The management of both of these forms of design is part of the systems engineering management responsibility of the EMT. In this role, the main objective of the EMT is to ensure that the progressive development of the design follows a safe, effective, efficient and economic path. Design Control, CM and QM must be integrally related to ensure that the final product conforms to the required specifications.

32. Effective Design Control. Effective design control is achieved through the integral application of many engineering management practices. Most of these practices are traditionally applied during the development of major weapons systems, but they are also applicable to the management of design changes to in-service weapon systems. The requirement for a design organization to comply with ISO 9001 or TL9000 is a practical and simple way to obtain many of the features of an effective design control management system. The following points illustrate some common features of effective design control.

a. Project Management. New weapons systems, as well as enhancements to existing weapons systems, are developed as projects. The design of the components for a new weapons system progresses through a series of identifiable configurations known as “baselines”. In the early phases of design, these baselines may consist only of the distribution of functional capabilities to a high level array of components. Progress from one baseline to the next for each component is highly controlled, which means that its intermediate design objectives are stipulated beforehand. Design objectives for the next design stage become increasingly stringent and detailed as the project progresses. This ensures that system components being designed concurrently but independently will fit and operate with each other as required. A project management framework is essential to exercise effective control of design work.

b. Phased Development

(1) Commitment to a new weapons system is not a single, all encompassing decision. Similarly, the design work applicable to these systems should not be based on a single delivery. There should be provision for repeated “design a little, test a little” phases without having to commit to a large design effort with no opportunity to influence the design or evaluate the work prior to the final delivery. Each test phase provides an opportunity for the EMT to make informed decisions on the progress to date, identify what requirements trade-offs may be needed, as well as provide early indication of any potential problems in either the design or its management. This is a key benefit of using synthetic environment based acquisition or models in general. Using a phased development approach to design work provides early identification of problems and the opportunity to apply corrective action before the situation worsens. The overall project will be “sentenced” in accordance with the findings of the review process at these suitable “gateways” built into the design production management system. Overall, phased development reduces the risk associated with the project and keeps DND in a position to influence the development.

(2) Typical evaluation points in design development include:

(a) The end of Preliminary Design Review (PDR);

(b) When contractors have prepared their work plans;

(c) After the preparation of paper-based prototype plans;

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(d) After testing and evaluation of prototypes; and

(e) After the preparation of paper-based plans for fleet embodiment and/or introduction into service.

(3) The actual fabrication of the component parts of a weapons system is a very expensive part of the development process. To minimize these costs, designs for component parts are produced as a series of “paper based” products, which incorporate ever-increasing levels of detail. Each design product is subjected to thorough analysis to ensure that it provides the required functionality and does not introduce unwanted features into the parent system. The scope of this analysis can be very wide. The ability of the new designs to satisfy primary performance objectives is checked, but the design also will be evaluated for such factors as their effect on the cost of the final product, produceability, supportability, safety, and reliability. Subject matter experts in these specialized areas review designs.

c. Design Assumptions, Limitations and Constraints. All designs are intended to satisfy a set of design objectives and requirements. The designer makes certain assumptions about these objectives, and produces the design. The design objectives in the finished product will only be met when the component is situated and operated within certain pre-determined limitations. These limitations can be extensive, ranging from such factors as the absence of manufacturing defects, to the operational speeds and temperatures that the component can be exposed to, to the protection, maintenance and servicing it must receive, to its ultimate service life. If the component is operated outside of these design limitations and constraints, its performance and functionality cannot be guaranteed.

d. Design Testing

(1) Engineering designs often have to meet objective design standards. There are various maritime, aerospace and land equipment standards, specifications, codes, regulations and design guides that all designs intended to be used in certain applications must meet. The process of design testing includes the verification that the proposed design meets the requirements of these objective design standards.

(2) Weapon system development may involve the development of bench models, laboratory tests, breadboards, proofs of concept, development models, prototypes, operational tests and evaluation, etc. Even with computer-based design analysis, the requirement for testing has not been eliminated completely, and these results are needed to validate the design before proceeding with production.

e. Control of Design Approval

(1) Design approval authority in weapon system development is vested in organisations and personnel meeting pre-established qualifications and certifications. Designs may be created by personnel with certain basic credentials, but the authority to accept and approve a design is restricted to those with the appropriate experience, education, expertise and commitment authority.

(2) Prerequisites are established for qualifying and certifying design approvals. Design approvals may be granted to both organizations and individuals. Formal processes are promulgated for qualifying and certifying design approval authority.

f. Design Change Control

(1) Engineering designs are subject to change at any time during the development and production of the weapon system. A design may have received prior approval by the design authority, based on the results of previous analysis. When an attempt is made to actually produce the design, various difficulties may arise which prevent it from being produced as specified. This gives rise to an Engineering Change Proposal (ECP).

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(2) The subject matter of the ECP may range from the trivial to the truly significant. If the proposed change is truly simple and self-evident, the EMT can usually approve the ECP. If the scope and significance is larger, higher levels of authority will have to be sought. For instance, an ECP may only convey the requirement for an engineering change without specifying the exact technical content of the change. Detailed engineering work may be required to produce the necessary design specifications. This work requirement may affect the overall progress of the project, and therefore has to be identified to, and managed by, the appropriate authorities.

g. Records and Documentation

(1) There is an extensive set of records and documentation created throughout the design of military weapon systems. This documentation is preserved and controlled to accurately capture all equipment design elements. Some of the more important contents of this documentation include:

(a) Design objectives, required functionality and technical performance;

(b) Design assumptions, constraints and limitations;

(c) A list of the applicable design standards;

(d) A set of evolutionary designs and drawings of components and systems;

(e) Acceptance test requirements;

(f) Any results of tests and trials;

(g) Stress calculations and load analyses;

(h) Failure Mode Analysis (FMA);

(i) Reliability and Maintainability data;

(j) Engineering Change Proposals (ECPs);

(k) Design specification change notices;

(l) Design approval records;

(m) Component significance data (e.g. safety significance, structural significance, EMI significance, maintenance significance); and

(n) Production instructions.

(2) Design changes authorized at one location can have tremendous impact throughout the development network. Formal design change notices have to be issued to all concerned, with feedback and acknowledgement that the details have been understood and appropriate action taken. Design changes always are “tagged” with an urgency and priority. The significance of the subject matter is clearly stated, and the consequences of delay are spelled out.

33. Design Reviews. Whenever systems are undergoing engineering and design changes, a series of formal design reviews are employed to measure actual progress against planned progress. Design reviews provide the discipline necessary to ensure that performance and functional requirements are met in the actual product. A design that greatly exceeds baseline requirements and provides performance and functionality not consistent with requirements may not necessarily be acceptable or desirable if the added features add unwanted cost, complexity or logistic problems. Design reviews may be defined as Preliminary, Interim, Critical, etc., depending on the phase and circumstance they are conducted in.

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34. Design Changes/Deviations. During the design and production phases, situations arise where design changes, design deviations and waivers are required from the design or product baseline. Formal procedures must be used to control these processes. Changes to the form, fit or function of an item are managed through ECPs affecting authorized baselines. Engineering Changes (EC) are permanent departures from the authorized technical data. Certain criteria are used to define ECPs as either Class 1 (critical) or Class 2 (non-critical), with different approval levels authorized for each class. Very often the urgency of the change will be included in the request.

35. Design deviations are used in the pre-manufacturing stage to manage temporary departures from requirements. A deviation differs from an EC in that an approved EC requires a corresponding revision to the documentation defining the affected item, where as a deviation does not contemplate revision of the applicable specifications or drawings. Waivers are used to manage the acceptance of an item or small lot of items with known deviations from baselines. Each of these requests is subject to a review for implications on health, safety, performance, flexibility, survivability, reliability, maintainability, durability, operational use, weight, appearance and cost. The approval of deviations and waivers may require special actions on the part of the EMT for inventory management, configuration management, technical documentation, maintenance management and training.

ENGINEERING ANALYSIS

36. General. As discussed in the previous section, design analysis is a critical element in design control. The way in which the EMT manages analytical processes can have serious effects on the acceptability, cost and time it takes to produce designs and embody them in equipment.

37. The earlier in the design production cycle that analytical processes are identified and performed, the more successful the outcome will be. It can be very serious to learn at the last minute that a certain kind of essential analysis has not been performed. It can be disastrous to learn that a design does not meet essential requirements after the design has been produced. Care should be taken to ensure all requirements are addressed in a timely fashion.

38. Design analysis complements design testing. Since design testing is a large, costly and time-consuming activity, it should be minimized. Design analysis, used with care and good judgement, can be used as a tool to reduce testing requirements.

39. The design of complex military equipment usually includes an analysis of how the material will fail in-service. These analyses are known as Failure Mode Analysis (FMA) and Failure Modes Effects and Criticality Analysis (FMECA). These may be necessary when systems and equipment undergo major redesign or configuration changes. FMA and FMECA form the basis of a number of other analyses. Reliability, Availability and Maintainability Analysis (RAM) review the combined effects of the failure modes and failure rates of sub-components on the system as a whole. The results from these studies form the basis of the maintenance programs, inventories of spares and support equipment, and logistics systems that are required to be set up or adapted to the characteristics of new equipment.

40. Results from analyses often are reviewed at formal design reviews.

41. Competitive Procurements. Various analytical products are generally required to be included in the technical volume of the design agency’s response to a Request for Proposal (RFP). In these cases, it is necessary to specify in the RFP the intended use of the analytical data submitted by competitors as a means of evaluating competing proposals.

42. Design Acceptance Criteria. Along with test programs, analytical products produce the evidence that a design will perform as desired within the constraints of applicable technical and logistic characteristics. The EMT usually produces this objective evidence; however, EMTs do not generally possess the technical competence either to define the evidence required, or to evaluate the results.

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43. The implication of this situation is that EMTs must identify and consult with subject matter experts and design specialists to determine the analytical products required. Exactly who and where these authorities are located usually is stipulated by Divisional or Directorate Instructions. In some cases, these will be DND/CF resources and in other cases the responsibility will be vested with independent contractors. In either case, their requirements for analytical products form part of the SOW/Contract/Tasking for the Design Agency who will prepare the actual designs. In that way, the follow-on review and approval processes will proceed smoothly. Without this prior consultation, large portions of the design production cycle may have to be repeated with a corresponding cost increase.

44. Typical Analytical Products. The list of candidate analytical products is very long, encompassing operational, technical, functional, logistic and financial requirements. Examples of technical analytical products are contained in Figure 4-3.

Functionality and Performance Data Reliability, Availability and Maintainability Analysis

Mechanical Strength Human Factors

Weight and Balance Safety Analysis

Fatigue Properties Failure Mode, Effects and Criticality Analysis

Corrosion Potential Serviceability Criteria

Electrical Load Analysis Produceability

Electro-Magnetic Interference (EMI) Environmental Impact

Electro-Magnetic Compatibility (EMC)

Figure 4-3 Technical Analysis Products

45. Product Improvement Studies. Product improvement studies are often employed during the in-service stage to analyse how equipment capabilities might be enhanced. If accidents become problematic or failures/failure rates begin to affect operations or support costs, failure analyses may be employed to find the root cause.

46. In some cases, these studies can be performed within the EMT itself, but in most cases, sources outside the EMT must participate. These activities include defining the work requirement, managing the negotiation process to obtain the required services, ensuring funding is available to do the work, and integrating the work of all participants. Whenever contractors are involved, contracting processes must be initiated, including the preparation of a suitable statement of work. TEMS contracts are frequently used for this type of work. The EMT Leader will typically be required to provide funding for the contract and supervise contract management.

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ENGINEERING EVALUATIONS AND TESTS

47. Engineering evaluations and tests complement analytical processes by providing objective evidence of a design’s suitability. Such tests may involve simulations, computer generated testing, proofs of concept, breadboard models, full scale testing of developmental models and prototyping.

48. Testing activities can form a major cost component in the development of weapon systems and new designs. Test and Evaluation (T&E) requirements must be scrubbed down and integrated in order to produce the desired results at minimum cost. This activity often benefits from specialty expertise skilled in experimental design methodologies.

49. Systems and equipment that are candidates for military use must be evaluated to ensure performance specifications are met. The overall program of evaluations and tests may require the preparation of formal test and evaluation documents to facilitate the process. EMTs (Project Managers) may be required to produce test specifications, task contractors to develop test procedures, approve test procedures, witness tests and assess test results for compliance with the performance criteria. In many cases this will be an integrated and coordinated responsibility involving subject matter experts external to the EMT. As with analytical requirements, test requirements must be established as early as possible in the design production cycle.

50. During the in-service stage of the equipment, there will be many factors that will affect specific engineering activities. Equipment may be required to perform in roles and environments for which it was not originally designed. It may have to remain in service longer than originally intended. It may have to be integrated with new technologies, or conform to new environmental regulations. Field experience may cause a review of the serviceability criteria, service limitations and overall usage of the item. New packaging and handling systems may have to be devised. Failure rates and accidents may have to be investigated. All of this and more, conducted in an atmosphere of military urgency, make engineering management one of the most interesting and demanding aspects of life in an EMT.

51. EMT Leaders often will be involved in the “sentencing” of designs and design activities in response to test results. Large-scale test programs usually are reported in business plans, development plans and support plans.

ENGINEERING PRODUCTION

52. General. The commitment to physically manufacture a product from an approved design, or to embody a design change to in-service equipment, is quite distinct from determining the acceptability of the design products. Many situations can arise where progress stops short of production, such as:

a. A change of role and/or capability requirements for a weapon system;

b. Premature retirement or disposal;

c. Lack of funds; and

d. The need for design contingency plans (e.g. for possible future special installations).

53. When production is contemplated, it is important that design documentation be prepared to a state where the item can be produced by any competent source. An important but often neglected aspect is the acquisition of intellectual property rights for the design documentation. These data rights must cover the use of the equipment as well as the release of the documentation to a third party support contractor. Unless specific senior direction to the contrary has been issued, efforts must be made to support a competitive acquisition (for equipment or support) whenever industry sources are to be used. This is not always easy. Technical specifications and drawings often are prepared incorporating proprietary processes that prevent any other source from being able to produce the item. Special legal expertise may be required to establish whether design data can be used as intended.

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54. Quality Management in Production. Quality management requirements can be satisfied by imposing a formal quality management standard (e.g. ISO 9001) for any design, development, and production work. Note that formal registration of a quality management system is not the same as a self-declared compliance. The EMT Leader should ensure quality management requirements are understood and applied consistently. For high-risk situations, GQA beyond normal service levels may be required. Consult DQA staff as necessary. See Part 3 for details on Quality Management.

55. Testing and Evaluation of Production Items. Independent and/or customer acceptance testing of production items may be required. Again, testing requirements and pass/fail criteria are prepared under EMT control. Where DND/CF resources are involved, the EMT usually plays a coordinating and managing role.

56. Transition Planning. The production of new designs and their introduction into service normally occurs as a phased transition from a pre-existing inventory to another. The entire support infrastructure and all ILS elements must transition in parallel. The EMT usually manages this effort.



A-LM-505-480/JS-001 (MMI 1480), Specifications and Standards – Policy, Preparation and Selection

A-LM-505-483/JS-001 (MMI 1483), Metric Engineering Design

D-01-002-007/SG-003, Configuration Control (ECPs, Waivers, and Deviations)

D-01-100-201/SF-000, Preparation of Installation Instructions

D-01-100-203/SF-000, Preparation of Operating Instructions

D-01-100-206/SF-000, Preparation of Equipment Performance Standards and Test Procedures

D-01-100-207/SF-000, Preparation of Parts Identification Lists

D-01-300-100/SG-000, Standard for Specification Preparation – Technical Content

D-02-065-001/SG-000, SI Metric Engineering Design Practice

D-20-002-001/SG-001, Planning Guide for BIT and ATE

D-20-002-001/SG-002, Acquisition Guide for ATE

D-68-002-001/SG-000, Testability Design Guide for Electronic Assemblies Source

DAOD 3011-0, Test and Evaluation Policy

DAOD 3021-0, Software Engineering Management Policy


NATO STANAG 4093, Mutual Acceptance by NATO Member Countries of Qualification of Electronic and Electrical Components for Military Use

NATO STANAG 4183, NATO Metrication Policy

DMASP 5 (Engineering Management)

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MANAGING ENGINEERING CHANGES (MECs)

57. An EC involves a change to the set of physical and functional characteristics of an equipment or system as defined in the configuration documentation for the asset. Changes can affect operational capability, safety, reliability, logistics support and cost. EMTs have the responsibility to ensure that changes are conducted through a controlled, rational system of change.

58. CM supports effective engineering change processes through the establishment and control of configuration baselines for critical items. Functional and performance requirements are transformed progressively into products through the control of specified baselines. See Part 7, Configuration Management for detailed guidance on this topic.

59. Although the specifics of carrying out EC may vary among different EMTs, there is a work sequence that can be applied to most cases:

a. Know the local processes and authorities concerned with the EC;

b. Know the case for the EC;

c. Plan the way ahead;

d. Get buy-in and support approval;

e. Execute the plan and develop the ECP;

f. Plan the embodiment;

g. Manage the embodiment; and

h. Manage the new configuration.

60. The following provides some general tips and guidance for the carrying out engineering changes through this sequence:

a. The reason(s) for the change being investigated must be understood. An effective screening process involving historical research and the true nature and extent of the problem is required to avoid unnecessary work.

b. The specific change proposal must satisfy the reason(s) for the change.

c. The change proposal should be defended against alternatives, especially those which appear to have lower cost implications.

d. A comprehensive picture should be obtained of the probable effects of the change in terms of safety, fitness for end use, mission capability, operational readiness, and support effectiveness and efficiency. It should include the, “transition phase,” as well as the, “end state.”

e. It is also important to be on the lookout for occasions when two or more activities can be integrated. These occur at the management level and at the operational level. At the management level, for instance, design reviews on two different configuration change activities should be scheduled together if they each involve the same equipment and the same principal participants. An example at the operational level is where two different configuration changes each involve the removal and installation of an engine; if possible, both should be incorporated on the same occasion.

f. Using recognized project management techniques, the overall sequence of events and phases that are involved in carrying out an engineering change should be planned. As required, this includes:

(1) Preliminary assembly of proposal documentation;

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(2) Conditional approval by the Configuration Authority (CA);

(3) Financial requirements;

(4) Work breakdown structures;

(5) Detailed design and development of the proposal;

(6) Establishment of interim configuration baselines;

(7) Preliminary, intermediate and critical design reviews;

(8) Contract requirements;

(9) Deliverable documentation;

(10) Prototype;

(11) T&E requirements;

(12) Acceptance plans and activities;

(13) Independent validation and verification;

(14) QA;

(15) ILS requirements; and

(16) Embodiment.

g. Ensure the plan conforms to applicable directives and Configuration Management Plans (CMPs). Sketch out a preliminary time line and refine it as more details become available. Use the schedule to manage the project and to report on progress as required, and to communicate the plan appropriately.

h. The evaluation of proposals is an expensive process. The ESM plays a key role in planning the evaluation process to reduce costs. In some cases, it may be appropriate to conduct only a limited technical feasibility study before carrying out an evaluation of the logistics impact of the change.

i. The omission of a key review action can produce very serious consequences. The evaluation and approval of some engineering proposals can require contributions from a large number of subject matter experts.

j. In many cases, ESMs select reviews in accordance with pre-established instructions and guidelines. However, as the number of participants increases, the time and administrative workload required to process the proposal can go up significantly. Other means of expediting progress are available, as listed below:

(1) The use of classification systems showing the urgency required of responses;

(2) The provision of due dates;

(3) Holding combined proposal review meetings to convey information simultaneously;

(4) Ensuring that the response required by the ESM is clearly understood by the recipient. Often a quick overview is all that is required, while the recipient thinks that a “Ground up” analysis is needed; and

(5) The use of office automation, work flow management and communication systems.

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k. If at all possible, there must be assurance that any technical data procured through the change process is complete and adequate for manufacture and that it can be used by third parties in support of DND/CF.

61. ECPs, Original Equipment Manufacturer (OEM) Reports, R & O Reports, Unsatisfactory Condition Reports (UCRs), Non-standard Repair Proposals, Configuration Status Reports, Specification Change Notices (SCNs), Notices of Revisions (NORs), and Requests for Design Deviations (RFD) and for Waivers (RFW) all are common instruments used in engineering management. The EMT Leader in general, and ESMs in particular, should be aware of how these instruments fit into the engineering management plans and processes for the assigned equipment. Care must be exercised not to file incoming reports, data and documentation without first evaluating the impact on the in-service inventory. In some cases, the requirement or recommendation to embody a change to a configuration, to change its performance and functional characteristics, to change the maintenance plan or even to change its operational usage may not be obvious.

62. The EMT plays an essential role in the embodiment of engineering changes. This can involve:

a. Prototype Testing. This involves the identification of the prototype configuration; the authorization to install and test the prototype; the provisioning of the test plan/test conditions and acceptance standards; the identification of the condition of the parent equipment that the prototype will be installed on; making the arrangement for the provisioning of the parent equipment; the prototype installation instructions; the provisioning of special material, equipment, facilities and expertise required to conduct the test; the provisioning of safety instructions and guidelines, etc.

b. Proof Fits. A proof fit is used to test the intended installation instructions for the embodiment of a modification. The stipulations for the initial condition of the parent equipment making arrangements for the parent equipment to be available; the provisioning of embodiment instructions; the provisioning of special material, equipment, facilities and expertise required to conduct the proof fit; the provisioning of safety instructions and guidelines; the plan for evaluating the proof fit; are all responsibilities of the EMT.

c. Fleet Fits. This involves the identification of the organizations authorized to embody the modification; terms and conditions for embodying the modification; the provisioning of the instructions for embodying the modification; the provisioning of special material, equipment, facilities and expertise required to conduct the proof fit; the provisioning of safety instructions and guidelines; the test plan; other ILS requirements to support the embodiment, etc.

63. This process culminates in the preparation of an EC Instruction or a Modification Leaflet. The provision of step-by-step instructions is essential to ensure that the modification is carried out safely and effectively. The ILS package for supporting the embodiment should be in place, so that a “Modification Kit” with the required piece parts and the updated TDP is available when needed by the installation team. Test runs of modification instructions in the form of “Proof Fits” are used to validate large modification packages. The system support infrastructure should also be in place for the new configuration as it enters service, including operating and maintenance instructions, new support equipment, skill sets, spares, R & O support and all other ILS requirements.

64. The selection of the organizations to embody an engineering change may be left to the ESM, or, if it is a large modification, by some higher authority in the EMT. In some cases, they will be performed by internal formations. At other times they may be performed by contract, which sometimes are awarded competitively. An ESM will normally estimate the depth and total workload of the work package before a decision is made on how to best embody the change.

65. Configuration forecasting is the process of reviewing and analysing the cumulative effects of the modification embodiment schedule for a fleet or an equipment inventory. The interactions of technical differences, work schedules, operating capabilities, equipment availability and support requirements can have a significant impact on operations, workloads and financial costs. In many cases, ESMs are best positioned to assess the overall impact and how any adverse effects can be minimized. Consultations with other authorities may be required to formulate an optimum way ahead.

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66. The EMT is responsible for monitoring the in-service performance of assigned equipment. Each configuration enters service with the expectation that certain key performance objectives will be achieved. If these objectives are not achieved, serious problems can arise, operations will suffer, maintenance will have extra work, the supply system will not be able to keep up, and the support budget will be exceeded. The EMT Leader usually has the principal responsibility for monitoring the performance of the various configurations that are in-service, and for initiating investigations when target performance is not met.



C-02-010-004/AG-000, Use of Modification Labels

D-01-100-220/SF-000, Preparation of Modification Instructions

D-02-006-008/SG-001, Design Change, Deviation and Waiver Procedure

DMASP 5 (Engineering Management)

SYNTHETIC ENVIRONMENT BASED ACQUISITION (SEBA)

BACKGROUND

67. The application of Synthetic Environment Based Acquisition (SEBA) is based on the effective use of Modeling and Simulation (M&S) techniques to tie together the various multidimensional elements of the acquisition and support problem. Recent technological advances in M&S coupled with an increasing investment on the part of DND and our allies, are resulting in an impressive effort to increase the role of synthetic environments in the systems engineering and acquisition domains. While the use of M&S within ADM(Mat) has been common for many years, there currently is an increased emphasis because of the demonstrated ability of SEBA to reduce the acquisition cycle time, improve product quality, and lower LCC.

DEFINITIONS

68. The following terms occur often in the M&S literature and for the purposes of this section are defined by the DND SECO Verification, Validation, and Accreditation (VV&A) Guidebook.

a. Model. A model is defined as “a physical, mathematical, or otherwise logical representation of a system, real world entity, phenomenon, or process.”

b. Simulation. A simulation is defined as “the implementation of a model over time.”

c. Synthetic Environment. A synthetic environment is defined as “the linkage of models, simulations, people (real or simulated), equipment (real or simulated) into a common representation of the world.”

69. SEBA is defined as the use of models, simulations, and synthetic environments in the acquisition of new systems or systems-of-systems. It is neither a replacement for systems engineering nor the delegation of decision-making authority to computers.

CHARACTERISTICS OF SEBA

70. The rationale for the increased emphasis on SEBA is based on the premise that simulation and synthetic environments facilitate a faster and more complete evaluation of system concepts at an earlier phase of the engineering or acquisition process. M&S tools now have the flexibility to rapidly model and adapt a conceptual equipment design that can be evaluated in a controlled synthetic environment. This provides the means to

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effectively influence design decisions prior to the start of production, improving the overall product quality. Since most of the LCC is influenced by design decisions prior to Critical Design Review (CDR), a more thorough evaluation of the design will lead to better design decisions during this period that, in turn, will reduce the overall LCC. Since the model (or the environment) can be adapted quicker than a physical prototype, an additional benefit of SEBA is to save acquisition time. The benefits of SEBA are further enhanced when the evaluation infrastructure is available for use by various stakeholders throughout the life cycle of a defence system, or system-of-systems.

71. SEBA seeks to include fully integrated M&S technology across the MA&S and DMS phases, and considers the total cost of ownership of the equipment/system. It can be used in the preparation of the SOR to quantify the deficiency and provide the mechanism to evaluate the numerous “what if” scenarios that arise. During the options analysis, SEBA can provide assistance to decision-makers through direct evaluation of the various options. SEBA fits well into the definition phase, especially in the development and evaluation of Reliability and Maintainability (R&M) information. Once the technical solution has passed to the implementation phase, the actual design can be captured in a complex model that permits DND to fully evaluate the solution (including operational evaluations in a synthetic environment) prior to committing to production. This tremendously mitigates the technical risk of any development work. A description of the impact of SEBA on the MA&S and DMS phases is captured in Figure 4-4.

Figure 4-4 Roles of M&S in DMS and MA&S

72. A key component of the use of M&S is VV&A. If effective decisions are to be made on the basis of M&S experiments, it is vital that the model and its environment be an accurate representation of the true form. As a result, there will have to be some effort devoted to the verification and validation of any model used by the EMT in equipment acquisition. Once the equipment transitions to the in-service stage, the model will also have to be updated as the equipment is updated.

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SEBA SUPPORT ORGANIZATION

73. The M&S community within DND has the following organisations in place:

a. Synthetic Environment Working Group (SEWG). This is a permanent coordination body for all DND/CF M&S issues promoting the effective and efficient use of M&S. It includes the ECS and Group Principal representatives to promote cooperation among DND/CF Directorates. See Figure 4-5 for the SEWG structure.

b. Synthetic Environment Coordination Offices (SECOs). These offices are established for the DCDS organization and the ECSs to represent the interests of the operational commands and to facilitate joint use of available M&S resources.

c. Experimentation Centres. These centres use M&S to conduct defence related analyses.

d. Research and Development (R&D) Centres. These centres advance the state-of-the-art in synthetic environment design and application, and serve as a knowledge resource to the acquisition community in this area.

Figure 4-5 SEWG Organisations

74. A summary of the stakeholders in M&S are depicted in Figure 4-6.

SEBA’S IMPACT ON THE EMT

75. Although the name implies that the use of M&S is only applicable to the acquisition of new systems, there is an in-service role for M&S. Since a model of the physical design of the equipment will be available, the EMT can incorporate the use of this tool into its in-service support processes.

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Figure 4-6 M&S Stakeholders Through LCMS Stages

76. Once the equipment enters the in-service phase, the emphasis on reducing the LCC falls on the ILS system. The equipment model will provide a further resource for the EMT to perform in-service support and projections of LCC. Just as changes to the technical configuration of the equipment can be modeled, so can changes to the ILS configuration. This can provide the EMT with an improved capability to evaluate equipment support options and to observe the long-term implications of equipment support decisions. The use of M&S is likely to be required in the application of OWSM to justify maintenance support adjustments.

77. It is expected that the equipment model will be the focus for any equipment upgrades or the evaluation of equipment upgrades. A physical representation of the equipment will allow engineers to better understand the modification and any constraints on the modification. This will allow the EMT to adjust any equipment support arrangements prior to the equipment’s operational use.

78. The application of M&S also allows the EMT to evaluate the impact of changes to the equipment environment. This can be significant in cases where either equipment is being deployed to a new environment outside its normal operating parameters, or where the equipment is being considered for a new role as part of the Disposal Stage. By changing the synthetic environment, the equipment can be evaluated in the new surroundings and conclusions drawn about its suitability.

79. M&S also will play a role in the EMT’s development and management of the various EPPs, WSSP, or Class Plans. It will be possible, through the use of M&S technology, to provide to the EPM a more thorough evaluation as well as a quantified impact statement of any funding shortfall. M&S also provide a new medium for the presentation of business cases to justify expenses against the equipment. Thus SEBA provides new tools and capabilities for the EMT to exploit during the in-service stage.

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DND SEBA CONOPS (draft)

DND SECO VV&A Guidebook

DMASP 5-4

Synthetic Environment Coordination Offices (SECO)

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PART 5

MAINTENANCE MANAGEMENT

INTRODUCTION TO MAINTENANCE MANAGEMENT

MAINTENANCE PROGRAM

1. The creation and monitoring of the equipment maintenance program is one of the most important activities and responsibilities of the EMT. As already discussed, the in-service support costs associated with materiel far exceed the original acquisition cost. Therefore, if there is any cost savings to be gained through materiel management, most likely it will be found by optimizing support activities. In theory, it is very easy for a maintenance management authority to impose a set maintenance program. It is much more difficult to design an optimum maintenance program that provides a balanced approach to such factors as the maintenance of the item and its availability for in-service use. It is equally difficult to optimize the support infrastructure, such as when balancing preventive maintenance against corrective maintenance or contractor versus in-house support.

2. The maintenance program is executed in four stages: Planning, Implementation, Monitoring, and Improvement. Figure 5-1 illustrates these stages and the transitions between them. Maintenance management starts with the planning stage. In this stage the Concept of Support is defined and developed into a fully specified and implemented maintenance program. These activities define the types and frequencies of maintenance actions necessary to support the asset as well as the required support resources. Once the maintenance program is implemented, it is monitored to ensure that the support is both effective and efficient. Through maintenance monitoring, deficiencies and inefficiencies will be detected in either the maintenance program or the maintenance organization, and improvements to the support system will be designed, evaluated and approved. The revised maintenance program is then implemented and the changes to the maintenance program are monitored to measure their effectiveness.

MonitoringImprovement

Planning Implementation

Figure 5-1 Maintenance Activities

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MAINTENANCE PLANNING

3. Maintenance planning starts during the conception stage where the “Concept of Support” is developed. For details on how this is prepared, refer to the MA&S Desktop (to be renamed the MAT KNet in the near future).

4. The concept of support is contained in the E&SMP and is the base from which all maintenance activities and support requirements are defined. The E&SMP is a living document that evolves as the equipment progresses through the acquisition stages. As the equipment design increases in detail, the required maintenance actions are also defined. Under OWSM, the specified maintenance actions lead to the definition of a maintenance infrastructure that includes the best mix of contract/in-house support to implement the maintenance program. Throughout the maintenance planning process, the focus remains on meeting system requirements at minimum LCC.

5. There are two basic types of maintenance, corrective and preventive. Corrective Maintenance (CM) is generally carried out after an item has failed and is intended to restore the equipment or system to an operational state. With Preventive Maintenance (PM), the maintenance actions are carried out prior to an item’s failure with the intention of preventing the failure. PM schedules are developed initially from statistical R&M data obtained through the Reliability Centred Maintenance (RCM) analysis to determine:

a. The precise nature of each preventive maintenance activity;

b. Who will perform the task (i.e. operator or technician);

c. The frequency at which the task will be performed (e.g. daily, monthly); and

d. The maintenance line at which the task will be performed (e.g. 1st line, 2nd line).

6. CM procedures are identified primarily by the “Line of Maintenance” where the repairs are performed and detailed in a Permissive Repair Schedule (PRS) which is developed on the basis of the concept of support and policies stated in the E&SMP and/or ELD. CM processes are developed in the following manner:

a. The maintenance tasks necessary to support the equipment are defined, analysed and listed;

b. Each task is classified at a maintenance level consistent with the concept of support;

c. The Standard Repair Time (SRT) of each task is established; and

d. The responsibility for the particular maintenance task is assigned to the appropriate line.

7. The effort and resources assigned to PM and CM need to be balanced. The lack of PM effort means an increase in faults and more CM work. Too much emphasis on PM work, and although there will be little to no CM, the equipment is not operationally available. Generally, little can be done to lessen the costs related to corrective maintenance. However, preventive maintenance is an area where costs can be greatly reduced by carrying out only those preventive tasks which are necessary to ensure that catastrophic failures (i.e. failures which will result in serious damage or injury), will not occur. All PRSs are reviewed to determine which changes in the fundamental concept of support have occurred and to assess the impact of the change on the:

a. Maximum task duration;

b. Manpower requirements;

c. Repair parts capacity; or

d. Tool and test equipment holdings and capacities.

8. The detailed activities associated with maintenance planning are outlined in Figure 5-2.

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Planning

Review PrimaryRequirements

OperationalConcept

Laws andRegulations

Identification ofRequirement

Operational Profile

Life Expectancy

Distribution ofEquipment/

Systems

Environmental

OccupationalSafety and Health

Concept ofSupport

EquipmentBreakdownStructure

DevelopmentFailure Analysis Certification

RequirementsMaintenance

RequirementsMaintenance

Levels Life Cycle Cost

Level ofMaintenance

MaintenanceSourcing

Service LevelAgreement

International TradePolicies

ConfigurationManagement

Maintainability

Availability

Level of Risk

Identify FailureModes and Effects

Reliability

Operational Testsand Trials

Inspections

PerformanceLimitations

Accept/RejectCriteria

RepairabilityLimitations

Level of Service /Risk Tolerance

Visual

Non DestructiveTesting (NDT)

Frequency(Periodicity)

Level of RepairAnalysis (LORA)

Economic LORA

Service FacilityAvailability


Implementation Monitoring Improvement

Figure 5-2 Detailed Activities of Maintenance Planning

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MAINTENANCE IMPLEMENTATION

9. Once defined, the maintenance section of the E&SMP leads to the establishment of in-house maintenance organisations, contracted maintenance arrangements, personnel training, support equipment and facilities, spare parts inventories, documentation and other support elements necessary to satisfy operational requirements. Economy and efficiency are paramount in the establishment of a maintenance program. At the conclusion of the implementation activities, there should be a baseline LCC for the equipment as well as a performance baseline for both the equipment and the maintenance support system. Some of the processes involved in implementing a maintenance program are listed in Figure 5-3.

Implementation

Maintenance Plan

PreventiveMaintenance (PM)

CorrectiveMaintenance (CM)

PredictiveMaintenance

Human ResourceRequirements

Materiel ResourceRequirements ILS Requirements

Knowledge

Skills

Quantity

Location

Consumable Parts

Facilities

Equipment

Tools

Test Programs

Technical Data

Technical Training

Supply ChainRequirements

ConfigurationIdentification

Facility SpareParts


Planning Monitoring Improvement

Figure 5-3 Detailed Activities of Maintenance Implementation

MAINTENANCE MONITORING

10. System performance monitoring is an important task during the in-service phase of the materiel life cycle. In this phase, the target performance levels are compared against the actual performance levels to determine if the maintenance plan is both effective and efficient. The specific objectives of maintenance monitoring are:

a. To identify variations from the predicted R&M, and to alter logistics support accordingly;

b. To carry out trend analysis and to institute corrective action, prepare new procedures, develop modifications, etc.;

c. To establish a data bank to assist in the design process of other systems; and

d. To provide data to support component life and rationalisation procedures.

11. A more detailed picture of the overall Monitoring and Improvement phases is captured in the “Overall System Monitoring Context Diagram” available on the MA&S Desktop (MAT KNet) and presented in Figure 5-4.

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Figure 5-4 In-service Maintenance Context

12. Monitoring equipment performance involves measuring, recording, and analysing equipment performance and the performance of the maintenance support system itself. This information is generally fed into an environmental Maintenance Management Information System (MMIS) where the data is available to the EMT. MMIS systems provide key decision making information to the EMT such as the most common reasons for failures and the types of failures causing the most amount of downtime. Examples of MMIS systems include:

a. Performa (contact DTA 4 [MP] 3 for more information);

b. Equipment Management Information System (EMIS); and

c. Consolidated Maintenance Information System – Ship (CMISS).

13. The environmental MMIS are being replaced by the MASIS (SAP R/3 and Omega PS CASS suite). Details of MASIS are available on the MA&S Desktop (MAT KNet).

14. Other sources of maintenance monitoring information include individual event reports such as accident reports, hazardous occurrence reports, formal equipment status or simply telephone calls and emails with the maintainers. These and other indicators should be used to validate the overall performance of the maintenance program. Similarly, if the operational profile of the equipment changes, there should be a corresponding adjustment in the maintenance plan. EMT members are key players in formulating the necessary long-term maintenance adjustments. Detailed activities associated with maintenance monitoring are described in Figure 5-5.

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Monitoring


Implementation Planning Improvement

Maintenance TaskAnalysis

Identify Variations/Corrections

PM/CM Balance

Maintainability

PerformanceMeasurement

Failure Data

HazardousOccurrences

Trials

Tests

Inspections

Reliability

Availability

Maintenance /Repair Cost Data

PerformanceRecords

Trend Analysis

Equipment/SystemData

PM/CM TaskFrequency

Figure 5-5 Detailed Activities of Maintenance Monitoring

MAINTENANCE IMPROVEMENT

15. Maintenance monitoring has no benefit unless action is taken on the monitored data. Initial maintenance plans are developed from the original concept of support, the maintenance planning effort accomplished throughout the system design and the result of the Logistics Support Analysis (LSA) which is often called the Supportability Analysis. The occasion may arise where a significant change in the equipment or system’s maintenance plans will occur. Such modifications may entail the addition or deletion of specific maintenance tasks, changes in periodicity or the movement of tasks to another maintenance level.

16. R&M data, supply data, condition reports and data from special inspections, investigations and studies which may indicate deficiencies in the existing maintenance plans has to be collected and analysed. There may be an error or inefficiency in the maintenance program or changes in the role or environment of the equipment that requires a change to the maintenance program. In any case, the ESM will be required to perform an analysis on the available data and formulate a change to the maintenance policy and procedures for the asset, system or equipment. Various analytical methods for evaluating maintenance programs are available such as Activity Based Costing, Investment Analyses, LCC Analysis, Sensitivity Analysis and Supportability Analysis. Detailed activities associated with maintenance improvement are shown in Figure 5-6.

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Improvement

MaintenanceRationalization

Re-assessment ofMaintenance

Concept

Maintenance TaskAnalysis

PM/CM Analysisand Revision

Change inFrequency

ConfigurationChange(s)

Assessment ofRequirement

Equipment/SystemModification(s)


Implementation Monitoring Planning

Figure 5-6 Detailed Activities of Maintenance Improvement

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17. Activities associated with maintenance improvement are available from the MA&S Desktop (MAT KNet).

18. All proposals for changes to equipment design, support stock levels, or operational deployment must be reviewed in order to assess the impact of each proposed change on the viability of the existing concept of support. When evaluating the impact of changing operational or support requirements, the overall effect on all ILS and maintenance related elements must be considered. This includes:

a. Holdings of spare parts and Line Replacement Units (LRUs);

b. Additional training and technical support staff;

c. Storage, transportation and distribution requirements; and

d. Other technical documentation.

19. For a detailed review of the specific tools and techniques used in the conduct of maintenance management, refer to the LCMM Activities Handbook, Chapter 3, Section 3 available on the MA&S Desktop (MAT KNet).



ALM 35-6009-RB (C), Reliability Centred Maintenance (RCM) A-LM-505-001/AG-003, Military Standard – Logistics Support Analysis (MIL-STD-1388-1A, 11 April 1983) A-LM-505-459/JS-001 (MMI 1459), Unsatisfactory Condition Report A-LM-505-487/JS-001 (MMI 1487), Reliability and Maintainability (R&M) Management Guidelines C-02-005-010/AM-000, Maintenance of Non-standard Equipment C-02-015-001/AG-000, Unsatisfactory Condition Report C-03-015-024/AM-000, Maintenance Policy – Failure Reporting Maritime Pre-Installation C-04-006-001/AM-001, Land Maintenance Levels and Lines C-04-010-002/AM-000, Technical Management Policy and Procedures (Land) – Permissive Repair Schedules (PRSs) and Standard Repair Times (SRTs) C-04-015-002/AG-000, Technical Failure Reporting C-05-015-014/AM-000, Pre-Installation Failure Reporting D-01-100-204/SF-000, Preparation of Preventive Maintenance Instructions D-01-100-205/SF-000, Preparation of Corrective Maintenance Instructions MA&S Desktop (MAT KNet)

Divisional/Directorate ILS Staffs DMASP 5-6 (ILS) DMASP 5-7 (R&M) ESMs ETEs

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MAINTENANCE POLICY AND PROCEDURES

INTRODUCTION

20. The allocation of resources to equipment maintenance must be a direct result of approved policies and priorities, which in turn must consider the availability of resources. Policies and procedures provide materiel managers, maintainers and operators with standardised methods for the packaging, handling, storage, transportation, installation, operation, maintenance and eventual disposal of equipment and weapon systems within the CF. It must be noted that Director Land Equipment Resource Management (DLERM), DAEBM, and Director Maritime Management and Support (DMMS) have primary responsibility for policy and procedures and will generally take the lead in such activities. DMASP is responsible for the enactment of some of the Materiel Group policy in the form of procedural directives on engineering, maintenance and life cycle management, as well as other technical subjects, such as reliability, maintainability, life cycle cost, training, performance measurement and materiel standardisation.

21. Some of the typical areas where the EMT will participate in the development and maintenance of policy and procedures are listed in Figure 5-7.

Maintenance policy and planning, including the specification of the support organization

Support and test equipment

Special tools and test equipment Supply support

Packaging, handling and storage Transportation

QA Facilities/construction engineering

Training and training devices Computer resources support

Personnel Tests and trials

Hazardous material Technical data and publications

Environmental issues Disposal instructions

Figure 5-7 Maintenance Policy Areas of Interest

REQUIREMENT FOR POLICIES AND PROCEDURES

22. The introduction of new technologies, hazardous or sensitive materials, testing techniques or numerous other factors may necessitate the development of new policies or procedures by the responsible materiel managers within EMTs. The requirement to issue policy or procedures to safeguard personnel, materiel or the environment must be given the highest priority.

23. When preparing materiel management policies and procedures, it is important to consider the target audience and select the appropriate medium and obtain the concurrence of all agencies involved in, or that have an interest in, the subject matter before making the final submission. Figure 5-8 provides guidance on the preferred means of issuing policy.

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Target Audience CFTO Materiel Group Instruction

Divisional Instruction

Directorate Instruction CFAO

Field Units, Bases Materiel Group EPMs

Directorate

Figure 5-8 Preferred Medium for Disseminating Policy

REVIEWING AND UPDATING POLICIES AND PROCEDURES

24. The factors that govern the effectiveness of established policies and procedures are not static. As a result, it is necessary to periodically review established policies and procedures pertaining to materiel under EMT control and assess their ability to address recent changes in technology, governmental or departmental policy, equipment deployment, concept of support or any other factor which might render the policies/procedures ineffective. Within EMTs, the review and amendment of engineering and maintenance policies and procedures is the responsibility of the assigned ESMs.

25. Policies and procedures may require review and updating whenever:

a. The equipment/system has undergone a significant modification;

b. The second line maintenance and/or third line repair and overhaul facilities no longer can/will support the equipment;

c. A component within an equipment/system has been replaced by a new technology, which no longer requires the same special precautions/procedures; or

d. New environmental issues arise that may significantly affect existing maintenance policies and procedures.

26. The concurrence of all agencies participating in the instruction must be obtained.

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A-LM-505-000/JS-001 (MMI 1000), General Requirements for Preparation of MMIs

Annual Minister of National Defence Policy Reviews

Canadian Forces Administrative Orders (CFAOs)

Canadian Forces Technical Orders (CFTOs)

DGAEPM Divisional Instruction AF9000 Plus, Manual of Aerospace Procedures

DGLEPM Division Instruction 101, Preparation of DGLEPM Division Instructions

DGMEPM Divisional Instruction (MEMDI 01/97 ADM), Preparation of DGMEPM Divisional Instruction

Divisional Instructions (e.g. MAP, DGLEPM, MEMDIs, and DGEPS)

Materiel Group Instructions (MGIs)

Materiel Management Instructions (MMIs)

NDHQ Instructions ADM(Mat)

NDHQ Policy Directives

DAEBM (OPI for DGAEPM Divisional Instructions)

DLERM 7 (OPI for DGLEPM Divisional Instructions)

DMASP

DMGMC 5 (OPI for MMI, MGI, and NDHQ Policy Directives for ADM[Mat])

DMMS 2-5 (OPI for DGMEPM Divisional Instructions)

TECHNICAL ASSISTANCE

GENERAL

27. There are a number of maintenance management resources available to the EMT. These include:

a. ETEs (e.g. QETE, AETE, NETE, CFMETR, and ATESS);

b. Divisional support elements such as the R&M cells in each EPM;

c. Contract support, particularly those with specific equipment knowledge as OEM’s and experience with R & O, TIES and ILS contracts; and

d. Other Government Departments (OGDs).

28. Each source has its own special set of capabilities, limitations, costs, response times, performance standards, administrative and security implications, etc. Each source also has a unique tasking procedure and the EMT Leader is well advised to know what these are. Materiel Group Field Units and MRPs also provide special assistance to EMTs and CF commands may also be tasked to provide technical assistance.

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29. Situations arise when it is more convenient, efficient, and effective to task a CF unit to provide certain support than it is to contract with industry. The use of CF units should be considered whenever:

a. The likelihood of finding the required specific expertise within the CF is greater than in industry;

b. The task is minor and the preparation, issue and management of a contract would exceed the work of the task itself;

c. The scope of design and manufacture is minor and the unit cost could be very high if contracted to industry;

d. Security problems associated with contracted civilians would frustrate the work;

e. Limitations exist on the dissemination of proprietary data; or

f. The CF maintains the expertise for the specific purpose for quick reaction to a requirement.

30. The following guidelines apply when tasking CF units; however, priority requirements may arise where these guidelines would not apply:

a. The task should be achievable within the unit’s current organization and general capabilities;

b. The task should not absorb all the resources of the unit for an extended period of time; and

c. No major investment should be required by the unit itself to give it the required capability.

31. For certain special long-term support requirements, selected CF units may be provided with the additional capability. This arrangement is applicable when a facility under military control can provide the goods or service more efficiently and effectively over the long term.

MAINTENANCE CONTRACT COORDINATION

32. Introduction. The effective and efficient management of maintenance or R & O contracts begins with the contract itself. A properly developed contract leaves no doubt as to what is required or how the work is to be done. It is necessary to ensure that measures are included for QA and trouble reporting, and any other measures deemed necessary by the EMT. EMTs are responsible for the coordination of the technical aspects of service contracts. This includes:

a. FSRs/TSRs;

b. TIES;

c. TEMS; or

d. R & O.

33. R & O contracts provide for the maintenance of equipment or systems when such work is more effectively and efficiently performed by organisations outside of DND. Defective or time-expired items of materiel are forwarded to the designated R & O contractor in accordance with the Statement of Work. Divisional/Directorate/ EMT R & O staff perform the general management of R & O contracts.

34. FSR/TSR contracts are established to provide DND second and third line maintenance facilities with technical assistance and expertise beyond the capabilities of the CF maintenance staff. For the duration of a contract, FSRs/TSRs work at the CF facilities on a full time or part time basis and are integrated with the local CF maintenance organization. FSRs may also be positioned within EMTs to assist in the life cycle support of a specified system or equipment. FSR/TSR support is generally contracted to the OEM.

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35. TEMS/TIES contracts provide for the performance of tasks such as the preparation and incorporation of modification kits, investigative work requiring disassembly of equipment, a special testing program or work of a similar nature. It does not include R & O work. These contracts are established to provide EMTs with the specified expertise and assistance. The work may be performed at CF facilities or at the contractor’s facilities, as required.

36. EMTs normally monitor the effectiveness of maintenance support contracts. In the case of R & O and TEMS-type contracts, they are assisted by the CFQAR in whose area the contractor is located.

37. Coordinating FSR/TSR and TEMS/TIES Support. The introduction into DND of new and complex equipment or systems makes it necessary that specialized technical assistance be readily available throughout the in-service stage. Accordingly, it is the policy of DND to arrange for the provision, by the appropriate contractor, of expert specialized technical assistance at those locations where the lack of such expert knowledge would seriously detract from the operational effectiveness of the equipment or system.

38. EMTs are responsible for ensuring the quality the work of FSR/TSR and TEMS/TIES contract personnel by managing the technical aspects of the contract or standing offer. NDHQ is responsible for raising requisitions for FSR/TSR or TEMS/TIES support. The responsible ESM will advise the user HQ/units of the contract arrangements including commencement and terminating dates of the service and special instructions regarding reports, etc. The services of the FSR/TSR or TEMS/TIES must be performed in strict accordance with the conditions of the contract and their services terminated immediately that the need has been satisfied. EMT members shall not, under any circumstances, authorize contractors to carry out any work that does not have contractual coverage.

39. Reviewing and Assessing Contracted Maintenance and R & O Support. During the in-service stage of the life cycle, EMTs should continually monitor the effectiveness, efficiency, and economy of all maintenance support activities, including those that are contracted. The tools available to assess contracted maintenance and R & O include QA reports from inspectors at the work site, trip reports, Pre-Installation Failure (PIF) reports and UCRs. The applicable MMIS can also be a useful source of information.

40. Divisional procurement sections are responsible for the procurement of all R & O services. EMTs must establish interfaces with Divisional R & O staff and coordinate all aspects of contract management. The effectiveness of contracted maintenance and R & O is usually best determined by analysis of failures soon after the maintenance or R & O activity. Even though warranty may cover any rework or deficiencies, this does not eliminate inconvenience. In fact, to exercise warranty can create a significant administrative burden.

41. Within the CFSS, an automated repair procedure is employed to expedite the return of unserviceable materiel to a serviceable state. Under this system, predetermined items are scheduled for repair, either by civilian contractors or by CF repair establishments. Forecast quantities of repairable materiel provided by SMs become the basis of DND R & O funding and procurement of spare parts by repair facilities. The degree of accuracy of these forecasts will be directly reflected in the effectiveness of CF operational support capability and in relative costs to DND.

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A-LM-505-312/JS-001 (MMI 1312), Procurement Instruments Preparation Distribution Follow-up, Annex F – Special Considerations Applicable to PIs for FSRs and TSRs

A-LM-505-476/JS-001 (MMI 1476), Supplementary Maintenance Assistance

A-LM-505-477/JS-001 (MMI 1477), Acquisition of Technical Engineering and Maintenance Services (TEMS)

A-LM-505-491/JS-001 (MMI 1491), In-house Manufacture

A-LM-505-500/JS-001 (MMI 1500), Repair and Overhaul (R & O)

C-02-005-011/AM-000, Procedures and Guidelines – Mobile Repair Parties Manned by Contractor Personnel

C-02-006-006/AG-001, Tasking Procedures and Guidelines for Requesting Engineering and Technical Services from Material Group Filed Units

C-02-006-009/AG-000, Field and Technical Service Representatives (FSR/TSR) Requirements and Terms of Reference

CFAO 36-45, Third Line Maintenance of Material

DAOD 3004-2, Service Contracts

LCMM Activities Handbook (MMI1019)

CFQAR

Divisional Procurement Staff

Divisional R & O Staff

DMASP 5

PWGSC Contract Officers

SMs

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PART 6

ENVIRONMENTAL MANAGEMENT

OVERVIEW

DND ENVIRONMENTAL POLICY

1. The CF and DND have taken an active interest in the environment for many years, but our environmental activities have not always been particularly visible. Government legislation and policies, as well as greater public interest, have now made it essential that greater central direction and control be exercised over our environmental activities and achievements.

2. The EMT is required to exercise due diligence to protect the environment in all its materiel work. Examples of specific environmental statutes and regulations that apply to the EMT are Canadian Environmental Protection Act (CEPA), Canadian Environmental Assessment Act (CEAA), Fisheries Act, and Transportation of Dangerous Goods Act. DND environmental management policy requires that a proactive approach be taken to protect the environment. Consequently, environmental considerations and pollution control standards must be included in all DND procurement instruments and policies. For the EMT, applying the “Four R’s” (Reduce, Reuse, Recycle, and Recover) at each phase of the materiel management life cycle will help protect the environment and reduce costs.

CONCEPT OF DUE DILIGENCE

3. All EMT members must apply prudence and care toward the environment in all their activities. This is called exercising “Due Diligence.” As a minimum, due diligence requires that EMT members:

a. Know and obey federal environmental laws and regulations;

b. Exercise caution;

c. Prepare for risks that a thoughtful and reasonable person would foresee; and

d. Respond to risks and incidents as soon as practicable.

4. The EMT Leader shall ensure that all EMT members are appropriately educated in any environmental matters related to their duties, and given appropriate resources to properly handle their environmental responsibilities.

5. Failure on the part of any member of the EMT to apply due diligence will lead to disciplinary action and possibly legal prosecution. Should an environmental incident occur, an individual may be acquitted of environmental infractions if, on a balance of probabilities, the member is shown to have used all reasonable care to avoid the particular event.

ENVIRONMENTAL MANAGEMENT

6. Environmental management is divided into three broad functional categories:

a. Sustainable Development. Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. In a military context, this means our present defence activities occur with minimum environmental outcomes that place restrictions on future needs.

b. Physical (Environment). Dealing with identification, classification and handling of hazardous substances as they relate to personnel safety in the workplace.

c. Electromagnetic (Environment). Dealing with the identification of, classification of and protection against Electromagnetic Environmental Effects (E3).

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7. An Environmental Management System (EMS) is that part of the overall management system that includes organizational structure, planning activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving, reviewing and maintaining the environmental policy. Simply put, an EMS is a formal framework to manage, monitor and report on an organization’s environmental issues. A common framework used to describe an EMS is the ISO 14000 standard.



AF9000 + DGAEPM Environmental Risk Assessments

DAOD 4003-0, Environmental Protection and Stewardship

DAOD 4003-1, Hazardous Materials Management

DGMEPM Divisional Instruction 1/02 ADM DGMEPM Environmental Management System Manual

DGMEPM Divisional Instruction 7/02 ADM EMS Environmental Considerations in the Acquisition of Goods and Services

ISO 14000, Environmental Management Systems

LCMM Handbook, Chapter 10, “Environmental Assessment Checklists”

D Env P (Environmental Protection)

D Env S (Environmental Stewardship)

D Law E (Environmental Legal Advisor)

DGAEPM Env O (DTA 7-5)

DGLEPM Environmental Coordination (DLESS 6)

DGMEPM Environmental Coordinator (DMSS 2-4-2)

ENVIRONMENTAL IMPACT ANALYSIS

8. DAOD 4003-0 defines the environment as the total of all the external conditions that may act upon a living thing or community to influence its development or existence (physical, chemical, biological, aesthetic and socio-economic). To evaluate the impact of materiel on the environment, an Environmental Impact Analysis is used. The two key elements of an Environmental Impact Analysis are:

a. Environmental Assessment Panel (EAP) – a multi-disciplinary group, usually three to six persons, appointed for their expertise and objectivity, to evaluate through public hearings and study the potential environmental impact of a proposal referred to the Minister of Environment for review; and

b. Environmental Impact Statement (EIS) – a documented assessment of the environmental consequences and recommended mitigating actions of any proposal expected to have significant environmental consequences, prepared or procured by the proponent in accordance with guidelines established by the EAP.

9. EMT Leaders are normally involved in the procurement of equipment or systems and therefore must ensure the appropriate level of environmental assessment is carried out. EMT Leaders must also ensure that all projects reflect the federal government’s commitment to the maintenance of environmental quality (DAOD 4003-0). In particular, they are responsible to ensure that:

a. The project is processed through all necessary stages of an Environmental Assessment Review Process (EARP) early in the planning stage;

b. The federal policy on land use is observed;

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c. Expert assistance and advice is obtained when evaluating and processing the project;

d. The project estimates include funds and other resources required for EARP guidance and that all measures instituted as a result of the EARP are observed, monitored and recorded. A copy of such measures shall be forwarded to NDHQ/D Env P;

e. All hazardous substances are managed in accordance with prescribed CF/DND procedures; and

f. All routine activities conform to federal and provincial legislation and accepted environmental practices.

10. Potential environmental implications should be given careful consideration during each stage of the life cycle of the materiel, and environmental considerations and pollution control standards must be included in all aspects of DND procurement.



B-GW-100-D56/AA-001, CF Policy for Controlling Civil Access to Dangerous DND Lands, Ranges and Training Areas

DAOD 4003-0, Environmental Protection and Stewardship

DAOD 4003-2, Environmental Assessment


D Env P 2 (Pollution Protection)

D Env S 2 (Source Laws and Regulations)

DGAEPM Env O (DTA 7-5)

DGLEPM Environmental Coordination (DLESS 6)

DGMEPM Environmental Coordinator (DMSS 2-4-2)

Director General Environment (Environmental Protection Policy and EARP)

QETE 6

HAZARDOUS MATERIAL (HAZMAT) MANAGEMENT

DEFINITION

11. Hazardous Material (HAZMAT) is any dangerous substance, dangerous goods, hazardous commodity, hazardous product (such as poisons, corrosive agents, flammable substances, ammunition, explosives, radioactive substances, electromagnetic radiation emitter), or any other material that can endanger human health or the environment if handled improperly. Hazardous Materials Management is an essential factor in the management of DND materiel.

IDENTIFICATION OF HAZARDOUS MATERIAL

12. A foundational element of Hazardous Materials Management is the provision of complete and accurate information on the material, as well as the risks the material represents. In the case where a new material is being introduced to the CF, a Material Safety Data Sheet (MSDS) should be sought. The key information requirements about HAZMAT are:

a. Chemical and physical properties and characteristics;

b. Methods for testing;

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c. Safe handling procedures, in general and after spills;

d. Identification, marking and labelling;

e. Storage conditions;

f. Transportation requirements, including packaging, public road restrictions, air transportation safety, etc.;

g. Disposal requirements; and

h. Protective clothing requirements for handling spills as well as general handling.

13. EMT Leaders and responsible ESMs are encouraged to coordinate their activities on environmental matters with D Env P and to communicate with other DND/CF organisations involved in hazardous materials management. ESMs are normally the first point of contact for information on HAZMAT in the acquisition stage and must advise the EMT Leader accordingly. If ESMs have insufficient information, they can obtain guidance from the DND HAZMAT Coordinator (D Env P).

EMT LIFE CYCLE RESPONSIBILITIES

14. Conception and Acquisition. Hazardous material management begins in the early stages of the equipment life cycle. During the conception and acquisition life cycle stages, it is necessary to determine:

a. The type of material that contains hazardous substances;

b. The hazard presented (e.g. chemical, nuclear);

c. The identification of the hazard (e.g. PCBs, radon, tritium, etc); and

d. The quantity and location of any hazards.

15. In consultation with the potential contractor and DND engineering staff, serious consideration is needed to examine the feasibility of eliminating the hazard or of substituting a less hazardous replacement. If HAZMAT is required for the acquisition, all specifications and requirements pertaining to the management of hazardous substances must be included in procurement documents. Director Environmental Protection (D Env P) and HAZMAT specialists in transportation, supply, warehousing, and disposal must be advised of a material containing hazardous substances.

16. When the materiel is being received, all hazardous items must be identified, marked, and labelled in accordance with federal or provincial directives and guidelines. This shall occur prior to the materiel being accepted into the CF inventory.

17. It is also important to inform equipment specialists of the HAZMAT condition so they can update their orders and procedures concerning the new equipment. When this materiel enters service, maintenance personnel must be properly informed of the effects, use and handling of the hazardous substances in their equipment.

18. In-service. EMTs are also responsible for the periodic review of all hazardous materiel under their control, and to take timely and appropriate action to minimize their impact on personnel, other materiel, and the environment.

19. Equipment may contain hazardous substances that are the responsibility of other EMTs or another ESM within the same EMT. The ESM responsible for the hazardous substance must provide the equipment ESM with the necessary instructions for handling the hazardous substance. Where new hazardous substances have been introduced as part of an in-service equipment purchase, the equipment ESM must assume responsibility for the hazardous substance, until an ESM is identified or designated as the ESM for the hazardous substance. EMT Leaders have ultimate responsibility in this matter.

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20. A good resource for HAZMAT information is the Director Materiel Management and Distribution (DMMD) intranet site.

21. Disposal. Disposal information for HAZMAT is available from the ADM(IE) intranet site.



AF9000+ MAP EN08.001/a-01, Substitution and Management of Hazardous Materials

A-LM-007-008/AX-001, Manual for Spills of Hazardous Materials

A-LM-137-COM/LX-001, (Canadian Government Catalogue of Materiel [CGCM])

A-LM-158-004/AG-001, Transportation Manual – Volume 4, Movement of Materiel

A-LM-187-004/JS-001, Volume 4 – Special Supply Instructions for the Safe Storage, Handling and Disposal of Hazardous Material

A-LM-505-630/JS-001, Initial Supply Support for New Equipment

A-LM-505-642/JS-001 (MMI 1642), Storage Characteristics Handling Codes (SCHC) and Shelf Life Code (SLC) Code Assignment


D Safe G 3 (Workplace Hazardous Material Information System [WHMIS])

DMMD 2-4 (Supply, Warehousing and Disposal)

DTM 2-4-2 (Transportation of Dangerous Goods)

NUCLEAR/RADIOACTIVE MATERIAL MANAGEMENT

22. DND employs a wide range of radioactive material and other sources of ionizing radiation that could pose a hazard to the environment, to personnel or to other materiel. These include everything from a nuclear reactor, to X-ray units, to electronic tubes, to depleted uranium in ammunition, to tritium light sources, etc. The EMT must ensure that this material is effectively managed over the entire life cycle of the asset in order to minimize the hazard it presents.

CONCEPTION AND ACQUISITION

23. If radioactive material is being considered as part of an acquisition, review all existing policy regarding nuclear/radioactive material, including international, federal, provincial and departmental regulations. Investigate the licensing regulations for nuclear radioactive materials as stipulated by the Atomic Energy Control Board (AECB). Prior to the acquisition, identify any specific equipment that will contain radioactive material and forward all available information to Director General Nuclear Safety (DGNS) / Director Nuclear Safety Compliance (DNSC). They are tasked with the responsibility of managing the nuclear radioactive materials and will:

a. Assess the degree of hazard associated with nuclear radioactive materials;

b. Assess the existence of additional management policy; and

c. Obtain direction on specific management procedures.

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24. The overriding principle with nuclear materials is to limit exposure. The EMT shall ensure that the ALARA (As Low As Reasonably Achievable) principle is applied in the project definition phase of an equipment/system acquisition to ensure that all reasonable measures have been taken to reduce the risk of radiation exposure to personnel and the environment. In consultation with the potential contractor(s) and DND engineering staff, examine the feasibility of eliminating the nuclear radioactive material, or of substituting a material with a lower level of radioactivity or a less hazardous replacement.

25. When sponsoring an SS for a capital project or other similar activity, contact DGNS/DNSC prior to submission to ensure that proper radioactive material procedures are followed, as all Synopsis Sheets are reviewed by DGNS prior to Vice Chief of the Defence Staff (VCDS) sign-off. Ensure that the substantive cost estimate for the equipment or system has made adequate resource provisions for the safety of nuclear radioactive material throughout the life cycle.

26. The procurement instrument used to acquire radioactive materials should include the following clauses:

a. Marking. Items shall have the appropriate radioactive trefoil markings, which will last throughout the normal life of the equipment.

b. Packaging. Items to be delivered to DND shall be packaged and marked in accordance with C-02-040-003/TP-000, Part 4.

c. Documentation. Equipment/packages containing radioactive material must be accompanied by the appropriate documentation with the required warnings and instructions on handling, use, maintenance/repairs, safety precautions, transportation, storage and disposal.

27. EMTs should assess the safety of the equipment or system that contains radioactive material. DGNS/DNSC should be contacted for guidance. The assessment should include:

a. Types of isotopes and nuclear activities;

b. Personnel risks (exposure, Thermal Luminescence Dosimeter [TLD] requirements etc.);

c. Detection instruments required to monitor radioactive material;

d. Maintenance requirements;

e. Accident evaluation, risks and response procedures; and

f. Disposal instructions.

28. Prior to delivery of equipment containing radioactive material, the EMT shall ensure that:

a. The request for transport of radioactive material has been sent to DNSC and authorization has been granted;

b. The receiving unit has a qualified Radiation Safety Officer (Rad SO) licensed by DNSC;

c. The receiving unit has a storage facility conforming to the requirement of C-02-040-003/TP-000 (Part 5), and approved by DNSC; and

d. The receiving unit holds dosimetry/radiation detection instruments.

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IN-SERVICE

29. The Canadian Government Catalogue of Materiel and Transition History file lists all items and sub-items containing radioactive substances. These are identified with SCHC “R” for Radioactive. It also lists the rate of emission in isotopes and radioactivity in Becquerels or disintegration per second. When the EMT is managing nuclear materials, it is essential that the EMT maintain sufficient expertise to carry out safety assessment of nuclear technologies with the assistance of DGNS Staff. DGNS is responsible for regulating ionizing radiation safety within DND. Hence, DGNS is responsible for ensuring that users/operators follow regulations for the safe acquisition, use, storage, repair, transportation and disposal of items containing radioactive materials.

30. Any unit requests for equipment containing radioactive material must be coordinated with the local Rad SO prior to submission. All radioactive material in the custody of DND personnel or establishments must have a license issued by the AECB and approved by DGNS/DNSC. The EMT will also have to develop and maintain a registry of all equipment that contains nuclear/radioactive substances.

31. Maintenance of radioactive equipment requires special provisions. The EMT must ensure that repair manuals and maintenance instructions for equipment containing radioactive material include proper warning and safety precautions, and that the repair facility is licensed by DNSC to work on open sources. The repair facility must be examined for contamination (refer to C-02-040-003/TP-000 – Part 16). For equipment being sent outside DND for repairs, a valid AECB Licence is required before a contract can be let. Periodically the EMT should review equipment policies and procedures to ensure continued compliance with the Concept of Due Diligence.

DISPOSAL

32. When the in-service stage ends, the EMT must be prepared to dispose of the material. Close coordination with DNSC is required to ensure the safe disposal of the radioactive material. The EMT may decide to remove the radioactive material and dispose of it separately, or leave the radioactive material in the equipment. If the radioactive material is being removed, it is important to ensure that a radiological survey is performed on the equipment to ensure its safety. Disposal of the radioactive portion is coordinated with DNSC. If the equipment is being sold with the radioactive material, the buyer must possess a valid licence from the AECB.



C-02-040-003/TP-000, Handbook for Radioactive Material

DAOD 4002-0, Nuclear Technology Regulation and Control

DAOD 4002-1, Nuclear and Ionizing Radiation Safety

Nuclear Safety Orders and Directives (NSODs)

DGNS/DNSC 2 (Policy)

DSSPM 3-2/3-5 (Radiation Hazard Coordinator)

ELECTROMAGNETIC (ENVIRONMENT) MANAGEMENT

33. EMTs have comprehensive responsibilities for electromagnetic environmental protection. All users must be informed of EM emissions, their location, intensity and frequency. Personnel must be warned that long-term effects of exposure are not yet known but are expected to be non-negligible. Caution must be exercised and personnel must be advised to limit their time of exposure to EM emission. EMC is defined as the ability of equipment, subsystems, and systems to operate in their intended operational environment without suffering or causing unacceptable degradation of performance as a result of electromagnetic emission or response. EMT responsibilities include:

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a. The pursuit of EMC through the elimination of unintended electromagnetic interference either by

protection of susceptible electrical and electronic equipment, systems and subsystems, or by limiting their electromagnetic radiation. The most economical means of accomplishing this objective is through proper equipment and system design;

b. The reduction of sources of Radio-Frequency Radiation (RFR) to minimize exposure to RFR;

c. To support the Radiation Safety Program through efforts to reduce sources of electromagnetic energy; and

d. To support the Laser Safety Program through the identification and development of procedures to deal with the hazards posed by lasers.

ELECTROMAGNETIC EFFECT MANAGEMENT

34. To ensure satisfactory system performance, operational effectiveness, combat readiness and operational safety, Canadian Forces systems, subsystems and equipment require protection against E3. E3 is classified as both an inter-system (between platforms) and an intra-system (within systems, subsystems or equipment) effect. Sources of EM energy include man-made RF and microwave emitters, electromagnetic pulse (EMP), electrostatic discharge (ESD), precipitation static (P-Static); and natural phenomena such as lightning, solar flares, aurora, and cosmic radiation. In addition to the above, other terms and areas that the EMT should be familiar with and that are encountered under the E3 discipline are:

a. EMC;

b. Antenna placement compatibility;

c. Frequency spectrum management; and

d. Hazards of EM radiation (RADHAZ) to ordnance (HERO), fuel (HERF) and personnel (HERP).

ACQUISITION OF EM EQUIPMENT

35. The costs associated with providing E3 protection vary depending on where in the life cycle E3 protection is invoked. At the earliest design stages, costs are minimal but can rise dramatically after production or installation. It is vital therefore that E3 protection be considered at the earliest stages of any project. For example, the Statement of Capability Deficiency (SCD) should reference the need for survivability against E3.

36. When acquiring EM equipment, EMT Leaders must ensure that the EMT is familiar with all existing policy regarding E3 management, including international, federal, provincial and departmental regulations. During the conception stage, it is important to identify the requirement for survivability against E3 effects and to factor that requirement into the cost estimates for the acquisition. This will include a definition and assessment of the type of EM hazards presented by the equipment. Liaison with the applicable NDHQ directorates responsible for EM hazards at the early stages of a project is a good idea. The test establishments (e.g. AETE, QETE, NETE and ATESS) should also be considered as sources of meaningful electromagnetic data.

37. Once the acquisition process is started, the EMT, in consultation with the potential contractor(s) and DND Engineering staff, should examine the feasibility of eliminating the source of the hazard. If the hazard cannot be removed, the extent of program resources that must be applied to the environmental management of those remaining electromagnetic hazards, throughout the life cycle of the equipment or system, should be established. RFR safety considerations should be present in all procurement instruments.

38. When new electromagnetic radiating equipment is procured, determine if hazards from EM radiation exist and ensure that all technical publications contain appropriate cautions or warning signs. Determine the safe distance for persons and fuel-vapour hazards for each emitter from C-55-040-004/TS-001, Annex B. The EMT should also ensure that safety distances and safety of emitters have been calculated and that calculations have been forwarded to QETE 8 and the respective units receiving the equipment. RFR safety considerations should be present in all operation and maintenance instructions.

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EM RADIATION SAFETY

39. DND sources of RFR include all radio-communications and radiolocation transmitters, radar, electronic warfare emitters, remote-controlled transmitters, microwave ovens, and medical diathermy equipment. ADM(Mat) is responsible for the RFR Safety Program that applies to all RF sources in the frequency range of 10 KHz to 300 GHz. EMTs should also liaise with the Command RADHAZ officers for equipment supplied to the operational commands.

40. The Permissible Exposure Levels (PELs) for the applicable frequency range are detailed in CFTO C-55-040-001/TS-001. PELs are based on source frequency, duration of exposure, what parts of the body are exposed, definition of general public versus an RFR worker, and exposure power density.

41. Report any unusual occurrence involving RFR safety to the Director Medical Services (D Med Svcs 3-3-2). If technical advice on radiation hazards or on RFR survey is required, task Quality Engineering Test Establishment (QETE 8) directly to provide the service required.

LASER SAFETY

42. Laser Safety, like all other safety matters, is a command responsibility. It is DND policy that adequate facilities, equipment, trained personnel and procedures be provided to ensure the safe use, inspection and maintenance of laser equipment. Laser safety should be considered during the early planning stages of equipment development. Consider liaison with DND medical authorities for advice on medical surveillance requirements for personnel occupationally exposed to hazardous laser devices, and subsequently verifying that Unit Laser Safety Officers are also aware of these requirements.

43. All laser devices should be classified before being issued to users, and all users must understand the PEL associated with that device. These levels are available in C-02-040-002/AA-000 for all devices in the CF. The EMT should determine the Nominal Ocular Hazard Distance (NOHD) associated with the laser device and ensure that this information is captured with other safety-related data in the devices CFTO. EMTs should also liaise with Command Laser Safety Officers.



A-GG-040-001/AG-001, DND General Safety Program (Volume 1), Policy and Program

A-LM-505-630/JS-001, (MMI 1630) Initial Supply Support for New Equipment

B-GL-304-003/TS-0A1, Operational Training, Volume 3, Book 1, Training Safety

C-02-040-002/AA-000, NDHQ Directive – Evaluation and Control of Laser Hazards

C-02-040-002/TS-001, Laser Safety

C-02-040-003/TP-000, Handbook for Radioactive Materials

C-05-005-044/AG-001, E3 Control within the CF (Air)

AETE, ATESS, QETE, NETE

D Med Svcs 3-3-2 (Setting of PELS and evaluation of health implications of RFR exposure)

D Safe G

DAPM (Ammunition, including electro-explosive devices susceptible to RFR, safety distances)

DAPM 4-5 (DND Coordinator for HERO Policy)

DFSCEPM (Fuels and Lubricants)

DMSS 2-4 (Sea-Fuels and Lubricants)

DTA 3-5 (Contractual Requirements for E3 Control)

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C-55-040-001/TS-001, Safety Precautions and Incident Prevention Instructions – Radio Frequency Safety Program

CFAO 34-51, Radio Frequency Radiation Safety

CFAO 66-4, Laser Safety

CFMO 27-13, Medical Surveillance of Personnel Occupationally Exposed to Hazardous Laser Devices

DAOD 2007-0, Safety

MAP ON-LINE PM – EMT04.022 – Environmental EMI/EMC

MIL STD 461D, Requirement for Control of EMI Emissions and Susceptibility

MIL STD 462D, Measurement of EMI Characteristics

MIL STD 464, E3 Requirements for Systems

NDHQ Instruction DCDS 3/83, Electromagnetic Pulse Protection (EMPP) for CF Equipment Systems and Installation Activity

RTCA DO-160D

J3 Doctrine and Training (Laser Safety)

QETE 5 (Air-Fuels and Lubricants)

QETE 8

QETE 8 (Technical Advisor RADHAZ)

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PART 7

CONFIGURATION MANAGEMENT (CM)

INTRODUCTION

GENERAL

1. Configuration Management (CM) is a management discipline that provides visibility and control of the functional and physical characteristics of assets over the entire life cycle. CM activities support project management, systems engineering, procurement, production planning, manufacturing, quality assurance, ILS, safety, Management Information Systems (MIS), and information delivery. CM consists of a disciplined and efficient approach to the identification of Configuration Items (CIs), the implementation of effective change control, status accounting of authorized configurations, and special audits to confirm the conformance of the item to the authorized configuration data.

2. CM is the element of systems engineering and LCM that ensures a suitable product identity (defined by technical data) is maintained throughout the life cycle of a defence system, and that all changes to this identity are methodically controlled. Throughout the life cycle, extensive changes will be proposed, initially during definition, design and development and eventually to the product, as well as its identity, during production and in-service. Regardless of when changes are proposed, CM ensures that an accurate up-to-date product identity is maintained. A Configuration Repository is a location where configuration documentation is maintained. This typically includes engineering drawings, performance specifications, equipment lists, configuration histories, etc. Any access to or changes to the documentation in the repository is authorized by the Configuration Authority. CM is most effective when all participants in the technical community are committed to employing appropriate CM procedures to maintain the technical integrity of assets.

3. CM affects numerous elements of the operating and support environments. The benefits of CM are seen when:

a. Relationships between design requirements and product characteristics are traceable through the configuration.

b. Design Authorities base their designs, design integration, calculations, and analyses on configuration baselines. The control function of CM assures that item configurations and item configuration histories are protected and made available to authorized users.

c. Maintenance support in a given operational context is based on approved item configurations. The occurrence of unexpected modes and patterns of failure as a result of the operation or maintenance of unauthorised configurations places an unforeseen burden on the maintenance infrastructure.

d. Effective supply support is similarly based on authorized configurations. Large and expensive inventories of material are required to support the servicing, maintenance and R & O of vehicles, systems and equipment.

e. Technical publications, training programs, safety programs, environmental protection programs and numerous other support programs and activities all are based in part on the authorized configuration. The existence of uncontrolled configurations causes hazards, material waste and inefficiency.

f. All stakeholders have appropriate access to accurate technical documentation that allows all management functions to be carried out effectively.

4. Too much CM will increase the administrative burden of preparing, processing and reporting configuration status, and increasing development time and costs. Too little CM will result in decreased management visibility, difficulty in controlling configuration baselines, and the possibility that critical requirements, tests, reviews and corrective actions are omitted. NDHQ Policy Directive P1/91 directs that all new and designated existing defence systems shall have a CMP to ensure that a suitable product identity is maintained.

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5. A large part of the overall workload borne by an EMT relates to configuration changes on the assigned equipment. Depending on the state of development of the system, ECPs can arrive in a constant stream from manufacturers, support contractors, operators, maintainers, other system users, etc. At any point in time, dozens of proposals may be under development and evaluation, each one requiring the expertise of numerous specialists and authorities. Business planning, systems engineering, and support functions must be adapted to the changing configuration. These ECPs create an ILS workload for training, maintenance plans, support equipment, test programs, test equipment, facilities, publications, inventory management, contractor support, disposal, etc. To coordinate all these activities requires an effective CM system.

CM ORGANIZATION

6. Configuration Authority. The Configuration Authority is the authority that exercises executive control over the development of new configurations and approves their introduction into service. The Configuration Authority for a large operating system may be a single individual or it may be composed of an expert panel or board. If a single individual is the Configuration Authority, there is usually a Configuration Control Board (CCB) to provide CM advice. Ad hoc CCBs may be utilised for special management situations.

7. The Configuration Authority for a system usually is vested in one or more individuals within the EMT. All configuration changes proposed for subordinate items affecting the main system must be reviewed and approved by this authority. Change authority for certain types of changes may be delegated. Executive management of the CM process is vested in the Configuration Authority. At the functional level, CM responsibilities may be conducted by a number of different parties, including EMT members, specialist CM personnel, contractors, etc.

8. CM Roles. Configuration Managers provide a range of specialized services to the engineering and logistics communities. The management of item configurations via identified baselines, the custodial responsibilities for the applicable documentation, the management of the history and development plans for configurations, and the provision of configuration documentation for specific purposes require a speciality expertise that is distinct from the technical knowledge on the system itself.

9. EMTs also may receive the services of CM System Managers, or CM System Specialists. Individuals in these roles carry out specialized activities in support of the CM process. Typical services include the establishment and maintenance of automated databases for CM purposes, CM status accounting, maintaining audit records and Quality Assurance on incoming CM documentation from external sources. As discussed above, these individuals sometimes are given the title of Configuration Managers, which can lead to misunderstanding about their role and responsibilities.

10. CM Structure. The implementation of CM is not trivial and requires an independent, well-staffed and competent CM organization. Although DND cannot dictate a contractor’s internal structure, DND can and should insist on a central point for CM. Typically, the contractor must be able to demonstrate that their configuration management organization is capable of fulfilling all CM contractual requirements for the project by either holding a current ISO 9001 registration, or by submitting the contractor’s CMP for review.

11. The configuration management organization within DND is fragmented among environments with no overall comprehensive plan for implementation. PMOs are responsible for monitoring the contractual CM system and for establishing internal practices to permit delivery of a Technical Data Package (TDP). The core elements of the TDP describe the technical and functional characteristics of the system/equipment being delivered. Within EMTs, ESMs are normally assigned responsibility for maintaining CM during the in-service stage. In the event that little or no previous CM has been established, responsible ESMs must initiate and develop a CM program for their assigned equipment/systems.

12. Defining the extent of CM necessary to support a particular equipment or defence system is generally undertaken as part of the technical requirements definition process. The function is carried-out under the direction of the PM, and involves the Systems Engineering Staff and CM Staff.

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13. The project manager for a defence system, in conjunction with the EPM/EMT Leader shall be responsible for:

a. Ensuring that a suitable CMP is prepared for the management and control of the designated CI throughout the life cycle of the defence system and that this CMP is staffed to all organisations included in the CMP prior to its approval;

b. Designating CIs as early as possible in the life cycle;

c. Preparing a plan for the transfer of CM implementation responsibilities from the project manager to a designated ESM; and

d. Ensuring that a final TDP will be available to support in-service CM and other management services in a timely and effective manner.

14. The EMT Leader must assign to an ESM the responsibility for implementing and managing the requirements of the CMP during the in-service and disposal stages of a product or defence system.

15. In-house Support. Within DND, CM support to a PMO or an EMT is available from:

a. DQA. At the contractor’s facility the QAR acts as the eyes and ears for the DA. The DA may delegate to the QAR the authority to approve minor changes, and task the QAR to assist in audits and other CM-related activities.

b. Directorate of Technical Information and Codification Services (DTICS). The DTICS 3 and 4 staff also aid in the preparation of the specifications for, and acceptance of, the TDP and related publications. Their facilities include drawing, writing and publication services, as well as a comprehensive records centre. DTICS 3 coordinates all the initial provisioning IP activities, as well as provides identification and cataloguing services. Note that DTICS may hold the technical data, but the management of the data is the responsibility of the EMT.

c. DMASP. DMASP establishes CM policy for DND.

d. PWGSC. PWGSC is mandated to act as DND’s formal contract managers. They process all changes to contract requirements and act as negotiators during disputes or contract interpretation issues.

CM DURING THE IN-SERVICE STAGE

16. CMP Management. It is important that EMT members involved in CM have a thorough understanding of CM processes. New ESMs should locate and review the CMP and associated procedures applicable to their fleets, vehicles, systems or equipment. Specific CMPs and procedures may be in existence for certain operating systems and equipment. The improvement of CMPs and procedures is an ongoing process throughout the in-service phase of the life cycle. It is important to ensure that applicable directives are current and effective.

17. New Item Registration. Adding new materiel to the CFSS inventory involves a comprehensive registration and cataloguing process. In particular, the assignment of new NATO Stock Numbers (NSNs) is based on the technical description of the materiel provided by the EMT to the DND cataloguing and identification authority (DTICS 6). This arises frequently during the configuration change process.

18. Record of Change. It is important that changes to part numbers (especially those that occur during reprovisioning) are processed properly and that the supply system is given the most current information. There must be a formal record of change for all amendments to configuration documentation. Without special CM provisions, the history of a CI identified by a part number may not be traceable beyond the point where that particular part number became part of the configuration documentation or that specific equipment entered service. The part number of a component that performed the function earlier in the life cycle, or a component on a system that was removed from service, may not be traceable.

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19. Change Request Documentation. ECPs, problem reports, non-standard repair proposals, SCNs, NORs, RFDs, and RFWs are common instruments for managing changes to the authorized configuration(s). Care must be exercised not to file incoming data and documentation without first evaluating its impact on the in-service inventory. In some cases, the rationale behind a change to the system configuration or the system’s performance and functional characteristics may not be obvious.

20. Proprietary Information. There may be proprietary content or other restrictions applicable to the use or distribution of configuration documentation (i.e. CTAT/ITAR concerns/requirements). Ideally, configuration data should be complete enough for any competent contractor to manufacture the item, and EMTs should have the option to select a contractor in accordance with normal procurement rules. Ideally, when new configuration documentation is procured from commercial sources, it should be complete enough to permit the fabrication of the item by, and releasable to, any competent third party. Configuration documentation associated with an item of materiel is generally procured with limited proprietary rights and is controlled under the terms of the related contract.

CM SUB-PROCESSES

21. CM processes can be grouped into four main activities. These are:

a. Identify and document the functional and physical characteristics of CIs;

b. Control any changes to those CIs and their related documentation;

c. Record and report any information needed to manage CIs effectively, including the status of proposed and approved changes; and

d. Audit the CIs to verify their conformance to specifications, interface documents and other contract requirements.

These are discussed in detail in the following sections.



D-01-002-007/SG-001, DND Standard – Requirements for the Preparation of Configuration Management Plans

D-01-002-007/SG-002, Requirement for Configuration Management Identification

D-01-002-007/SG-003, Configuration Control (ECPs, Waivers, and Deviations)

DAOD 3005-0, Configuration Management Policy

DAOD 3005-1, Configuration Management Instruction

DGLEPM Configuration Management Manual


MIL-HDBK-61, Configuration Management – Tailoring Guidance (30 Sep 97)

DLESS 8

DMASP 5-3 (Configuration Management)

DTICS 3 (Documentation and IP)

DTICS 4 (Engineering Drawings)

DTICS 6 (Codification)

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MIL-STD-973, Configuration Management

NATO ACMPs 1-7, Configuration Management Publications.

NATO STANAG 4427, Introduction of Allied CM Publications (ACMPs)

NATO STANAG 4454, NATO Parts Control Policy

NDHQ Policy Directive P1/91, Configuration Management Policy for Defence Systems

CONFIGURATION IDENTIFICATION

INTRODUCTION

22. Configuration identification provides the foundation for any CM program. When the configuration is not properly identified, it is impossible to control the changes to the configuration, to establish meaningful records and reports, and to know what to audit. Configuration identification ensures that all project management disciplines (procurement, engineering, QA, logistics, etc.) have common reference points through standard numbering and nomenclature. Configuration identification provides the basis to procure parts/materiel, to fabricate and assemble parts, to inspect and test items, and to operate and maintain systems. Inaccurate or incomplete configuration identification will result in added costs, schedule delays, poor maintenance, and the fabrication of defective products.

23. Definition. Configuration Identification is defined in the NDHQ Policy Directive P1/91 on CM as “The current approved or conditionally approved technical documentation for a CI as set forth in specifications, drawings and associated lists, and documents referenced therein. Also, the selection of the documents to comprise the baselines for the systems and CIs involved, and the numbers and other identifiers affixed to the items and documents.”

24. Configuration Item (CI). CIs are the basic units of CM. A CI is defined as an aggregation of hardware/software that satisfies an end-use function and is designated for separate CM. CIs are usually divided into hardware CIs (HWCIs or CIs) and computer software CIs (CSCIs). Items identified as CIs are subject to change control processes specific to their identity and ownership.

25. It must be emphasized that when items are not selected as CIs, it does not mean that the configuration of those items is not controlled. It means that the configuration is controlled through the documentation of the CI to which it belongs, instead of its own discrete documentation. The system breakdown illustrates and identifies the relationship of subordinate items in a system to the parent CI within a particular system.

26. CI selection is not an exact science. Program requirements and experience supplemented by an analysis of the technical, administrative, and financial implications must be used in selecting CIs. Selection of too many CIs may hamper visibility and management rather than improving it. Selection of too few CIs may result in costly logistics and maintenance difficulties. As a result, a balance needs to be achieved.

27. Configuration Identification Process. The configuration identification process is composed of the following tasks:

a. CI Selection. Establishing selection criteria and selecting the CIs.

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b. Configuration Documentation. Documenting the items’ functional and physical characteristics.

c. Baseline Management. Charting the progressive definition of the items and the documentation throughout the life cycle of the product.

d. Numbering and Marking. Identifying those items and their related documentation through marking and numbering schemes.

CI SELECTION

28. The CI selection process consists of four steps. The first is to establish the degree to which items will be managed. This is defined in the CI selection criteria. The second step is to decompose the system into its various subsystems, assemblies, and parts. The third step uses the decomposition and the CI selection criteria to define a configuration for the system, which in the last step is sent for formal approval by the system Configuration Authority.

29. Define CI Selection Criteria. Keeping the number of CIs to a manageable level is a prime consideration during the CI selection process. The selection of distinct hardware, firmware, or software CIs is determined by the need to control their inherent characteristics or their interfaces with other items. The existence of a large number of CIs creates an excessive workload beyond what most EMT resources can manage. To ensure that an adequate level of CM control is maintained across all portions of a system, a standard set of criteria is applied to the definition of CIs. Refer to Figure 7-1 for examples of the selection criteria. D-01-002-007/SG-006 provides additional details on the definition of the CI selection criteria.

CRITERIA CONSIDERATIONS

Criticality/Safety Does the failure of an item adversely affect security, human safety or is it cost-critical?

Function Items used for different roles (e.g. training, support, maintenance and mission items) must not be combined in a CI.

Subassembly Characteristics

All subassemblies of a CI must have a common function, and common installation and deployment requirements.

Newly Designed or Modified Design

These items are generally unproven and require a greater level of control.

Different Developers/Suppliers

Components from different suppliers should have different CIs.

Interfaces When designating CIs and CSCIs, items that are functionally interdependent should be grouped as a single CI.

Level of Repair LRUs should be considered as CIs wherever development costs are not significantly affected, and where adequate CM cannot be maintained in a higher level CI.

Support Equipment / Support Software

Simple items like a box of standard tools can be grouped under a single CI. More complex items such as a test station will require a separate CI.

Expected Change Rate Are a significant number of engineering changes to this CI likely?

Figure 7-1 CI Selection Criteria

30. System Decomposition. Decomposition is the top-down process of dividing a system into logically related and subordinate functions or physical parts. This is generally accomplished in two ways.

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a. Functional Breakdown Structure (FBS). This structure is the most typical of new acquisition projects. The overall system is at the top of the breakdown followed by the major functional elements or subsystems. The functions of these subsystems are again broken down into subfunctions and so on. This breakdown forms the basis for allocating hardware and software requirements and selecting CIs. Figure 7-2 provides an example of the FBS structure.

COMMUNICATIONSSYSTEM

BINARYASCII

SECURE UNSECURE

RECEIVESEND RECEIVESEND

DATAVOICE

FACSIMILEELECTRONICDOCUMENT

Figure 7-2 Functional Breakdown Structure

b. System Breakdown Structure (SBS). The SBS, also known as the Equipment Breakdown Structure (EBS) or the Physical Item Hierarchy (PIH), is a pictorial representation of the system from the system-level down to the part-level. Within DND, the standard levels of decomposition are as follows:

(1) First Level – System;

(2) Second Level – Subsystem;

(3) Third Level – Equipment;

(4) Fourth Level – Assembly;

(5) Fifth Level – Subassembly; and

(6) Sixth Level – Part.

c. These levels are arbitrarily assigned by the organization creating the SBS (i.e. what one organization considers level 3, another considers level 2). The basis for the SBS is the Bill of Material (BOM). The BOM is a list of all items/parts or materials that make up an item, one level down. For each item in an SBS, down to the part level, the item should be related to a specification, a drawing, a parts list (BOM) and any other documentation that describes its form, fit and function. An example of a SBS is provided in Figure 7-3.

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Figure 7-3 System Breakdown Structure

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31. For development projects, decomposition is an evolutionary process. As the system develops, more functions are identified and allocated to specific elements of hardware and software. Through the design process, hardware and software elements are defined to address those functions. This decomposition continues through the system until all parts are identified. If there are additions to the system through engineering changes, these additions also require a similar decomposition process to identify any new CIs. As a rule, system engineering performs decomposition, since it requires a technical understanding of the various elements of the system and the relationship between them. Once the decomposition has been accomplished, CM staff apply the CI selection criteria to each element of the hierarchy to determine which elements should be managed as CIs.

32. Approving the Selection of CIs. The CI selection process allows for negotiation with respect to the designation of CIs. If selected CIs are written into the contract or SOW, they are legal and binding contractual requirements. The EMT must be very careful about designating items as CIs since this could cause problems for both DND and the contractor. If the contractor selects the CIs, the contractor shall present the list of CIs to DND for approval. The final selection is made by the PM or ESM.

33. Typical procedures for approving the selection of CIs are:

a. All the contractor’s recommendations for the selection of CIs are reviewed;

b. The suitability of each CI is evaluated against the selection criteria detailed in D-01-002-007/SG-006;

c. The life cycle cost and impact on management resources associated with each designated CI is assessed and a cost/benefit analysis is performed; and

d. The contractor is formally notified of any decision regarding the acceptance or rejection of recommended CIs.

CONFIGURATION DOCUMENTATION

34. Configuration documentation technically defines the item’s functional and physical characteristics. As with specifications, requirements that are too stringent lead to extra costs for the preparation and control of changes to the drawings and requirements that are too loose lead to inadequate representation of the item.

35. Functional Configuration Documentation. The Functional Configuration Documentation (FCD) consists of a system specification or a prime item development specification (in the case of a single item development program) plus any other applicable documentation. The FCD also identifies the configuration documentation for those items that are to be integrated or interfaced with the CI, such as those being developed separately or those currently in the inventory.

36. Allocated Configuration Documentation. To facilitate the management of complex CIs, to facilitate the development and integration of system components, or to focus management attention on critical or high-risk components, system requirements may be allocated to lower-level CIs. The Allocated Configuration Documentation (ACD) defines the requirements allocated from the FCD, or from a higher-level CI, to a lower-level CI. The ACD is in the form of development or requirement specifications, referenced interface control drawings/documents, and other applicable documentation.

37. Product Configuration Documentation. The Product Configuration Documentation (PCD) describes the necessary physical and functional characteristics of the CI and any verification needed to demonstrate the CI’s performance. It consists of a complete TDP for the CI that includes product, material, and process specifications; engineering drawings; military specifications; and other technical documentation. The PCD may also be in either paper or electronic format.

38. Associated Lists

a. Parts List. A parts list is a tabulation of all parts and bulk materials (except those materials which support a process) used in the item. The preferred method of capturing this information is to incorporate the parts list with the drawing. Reference documents may also be tabulated on a parts list.

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b. Data List. A data list tabulates and identifies all drawings, specifications, standards, subsidiary data lists, installation instructions and other documents required for the manufacture or maintenance support of an item in accordance with the requirements of the design authority. Every CI requires a Data List to identify all applicable technical documents. The Data List reflects the system breakdown structure by identifying the data list numbers of parent CIs and by listing the Data Lists of all subordinate CIs. The DND Standard for Data Lists is contained in Section 9 of D-01-400-001/SG-000, Engineering Drawing Practices. The importance of accurate and complete Data Lists cannot be overemphasized. Data Lists serve as:

(1) Comprehensive inventories of TDP contents;

(2) Indices to assist in the management and use of TDPs;

(3) Configuration change control documents since they record the latest approved revision letter of technical documents;

(4) Procurement instruments for follow-on logistics support; and

(5) A tabulation of data lists and subordinate index lists pertaining to the item.

39. CI Identity and the Technical Data Package (TDP). The TDP is the complete set of approved technical data that provides a technical description of an item that is satisfactory for both engineering and procurement use. This package defines the required configuration of the item design and ensures that item performance is adequate. The TDP may consist of drawings, specifications, standards, plans, quality assurance provisions, performance requirements, technical publications, packaging data, marking data, samples, models and associated lists.

40. Within EMTs and PMOs, consultations are held with the ESM to determine the TDP elements. These elements include the types of specification, the types and level of drawings and any requirements for technical publications. It must be emphasized that discrete documentation is a requirement of a CI and therefore CI selection has a definite effect on the size and complexity of the TDP. The maintenance requirements also have an effect on the TDP contents. When DND has decided to repair equipment down to the piece-part level, then the most detailed drawings and associated lists are required. However, if the contractor is responsible for maintenance, the CF requires only top-level assembly drawings.

41. DND normally requests all available documentation from a contractor on the grounds that having this documentation ensures that the item can be supported. In the case where access to detailed technical documentation is needed, there are other administrative and contractual means to acquire the information at less cost than buying and maintaining a complete set of documents. For this reason, it is common practice for the TDP to remain in the custody of contractors, with access available to authorized DND/CF users. This prevents costly duplication of data, and reduces the overall workload. IP and ownership issues must be fully understood if a contractor is to update the TDP.

42. During the in-service stage, EMTs are typically responsible for ensuring that all documentation related to the weapons system reflects its current physical and functional characteristics. This documentation includes the TDP, Canadian Forces Technical Orders (CFTOs), publications and change control documents.

43. CM Involvement. CM is involved in the cataloguing, control and release drawings and associated lists. As with specifications, the first task of CM is to catalogue each drawing required by the contract or statement of work and its corresponding standard or DID. CM then links the drawings and associated lists with the CIs to which they belong. CM is also concerned with the drawing sizes, as different sizes may pose storage and control problems. Preparation of drawings is purely an engineering function. However, as with specifications, CM will control and release copies of the masters.

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BASELINE MANAGEMENT IN CONFIGURATION IDENTIFICATION

44. For each CI, CM is applied through Baseline Management, which is simply the process of establishing reference points from which to control changes. This is accomplished by designating, at an appropriate time, some or all of the configuration documentation (specifications, drawings, and associated lists) as a baseline and thereafter formally controlling changes to that baseline. Program management normally employs three baselines for the validation and acquisition of systems: the functional, allocated, and product baselines. Software management normally employs a developmental configuration to describe the software design prior to establishing the product baseline, and after the establishment of the allocated and functional baselines.

45. Definition. A baseline is defined as a formal record of the developmental status of an item, achieved through acceptance of a set of technical documentation defining the item at a point in the item’s life cycle. Achievement of a baseline occurs subsequent to an “enabling event”, which is usually a technical review or audit. Baselines, plus approved changes from those baselines, constitute the current approved configuration documentation. Once they are established, baselines do not change. When changes are required, a new baseline should be established. Figure 7-4 depicts the establishment of baselines in relation to the life cycle phases of a product.

NEEDS CONCEPTIONAL CONCEPT FULL SCALE PRODUCTION & OPERATIONAL RETIREMENTIDENTIFICATION INVESTIGATION VALIDATION DEVELOPMENT DISTRIBUTION USE & SUPPORT & DISPOSAL

ITEM LIFE CYCLE Today

FBFB FBFBABAB

PBPB

ABAB

PBPB

PBPB

PBPB PBPB PBPB

xx

FB Functional Baseline

AB Allocated Baseline

PB Product Baseline

PBPB

Figure 7-4 CM Baselines through the System’s Life Cycle

46. Baselines Established In-service. Baseline configurations are established throughout the life cycle of an item and not just during the system development. When an ECP is introduced, which alters the capability or function of the weapons system, new specifications should be written detailing:

a. The new capabilities and functions;

b. How these new capabilities/functions will be developed; and

c. The functional and physical characteristics of the modified system.

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47. Each of these specifications will form the basis of a new functional, allocated and product baseline for the system. These baselines provide the means to maintain control over the design and implementation of the modification, and they are established and maintained in exactly the same manner as during the acquisition stage.

48. CM Involvement. CM ensures that all the requirements to establish the baseline are met. CM accomplishes this by:

a. Recording the documentation requirements for each baseline;

b. Ensuring that any approved revisions to the documents are available at each review or audit;

c. Recording the changes, and the status of those changes, resulting from the review meetings;

d. Releasing the formally approved documentation once all changes are implemented;

e. Conducting the physical configuration audit to establish the product baseline; and

f. Ensuring that no changes are made to baseline documentation without the necessary approval through a formal change procedure.

49. The number of CIs roughly determines the complexity of the baseline management process. Since not all CIs are changed at the same rate, baselines are usually established in an incremental manner. This requires tight control of the various specifications and any changes to those specifications as they progress through multiple reviews. The contractor is formally notified of any decision regarding the acceptance or rejection of the baseline configuration documentation and the establishment of a baseline configuration.

NUMBERING

50. Once the CIs and their configuration documentation have been selected, the next task is to assign numbering schemes to uniquely identify both the items and their related documentation. Numbering schemes can take numerous shapes and lengths and vary drastically from one contractor to another. They can be as simple as 1, 2, 3... or as complicated as a 50 character alphanumeric code where each character describes an aspect of the item. General guidelines are available to assist in selecting an appropriate numbering scheme for the various types of configuration identifiers. These include:

a. Configuration numbers;

b. Specification numbers;

c. Drawing numbers; and

d. Part numbers.

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ACMP-2, Configuration Identification

D-01-002-007/SG-002, Requirements for CM Identification

D-01-002-007/SG-006, DND Standard – Criteria for the Selection of Configuration Items

D-01-300-100/SG-000, Specification Preparation – Technical Content

D-01-400-001/SG-000, Engineering Drawing Practices for Class 1 – Drawings and Technical Data Lists


NDHQ Policy Directive P1/91, CM Policy for Defence Systems

DMASP 5-3

DTICS 4

CONFIGURATION CONTROL

GENERAL

51. Configuration control is the sub-process of CM that directs the configuration of an item through its life cycle. Configuration control provides the “Who, What, When, Where, Why and How” for each (proposed) change to the configuration of a product. Configuration control is a process that includes the systematic proposal, justification, evaluation, coordination, approval or disapproval of proposed changes, waivers and deviations and the implementation of the approved changes, including updating the affected HWCIs, CSCIs, and configuration documentation.

52. The components of configuration control include:

a. Change Control Process. The requirements for the routing of a change from initiation to its successful incorporation into the product.

b. Configuration Control Organization. The organization that manages the change control process.

c. Documentation Control. The marking, storage and retrieval of documentation is crucial to the control of its configuration.

d. Release Control. Release control refers to the identification and control of the latest approved version of a document.

e. Interface Control. Interface control ensures that all elements of a system are coordinated and all system interfaces are considered when a change is proposed.

53. It is a common misconception that CM does not begin configuration control until a physical product is produced. In fact, CM controls all formally approved documentation (system and subsystem specifications, preliminary drawings, etc.) before production of a physical product. During and after production, CM controls both the physical product and the related documentation.

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CHANGE CONTROL PROCESS

54. The detailed steps in a change control process may vary depending on requirements and the complexity of the product. However, most change control processes have the following common elements:

a. The recognition of the need for a change;

b. Analysis and documentation of the change proposal;

c. Review of the proposal and assessment of the impact of the change;

d. The impact assessment and decision;

e. Decision documentation and promulgation; and

f. Implementation and verification of the completion of the implementation.

ENGINEERING CHANGE FACTORS

55. Once the configuration identification is formally established (through approved baselines) any alteration to the configuration of the equipment or system is termed an engineering change. In-service modifications are also engineering changes, although within DND the use of the term is sometimes restricted to engineering changes incorporated as a result of an ECP raised by a contractor. An engineering change in the in-service phase is classified as Class 1 or Class 2 as defined in MIL-STD-973. Generally, the factors that lead to ECPs fall into one of three distinct groups:

a. Uncontrolled Factors. These changes account for about 70% of all ECPs. These factors include: changes to industrial standards, lost technical expertise, defects or deficiencies in production documents, the addition of manufacturers authorized to supply parts, and statutory regulations that prohibit use of certain materials. ECPs in this category are numerous but relatively inexpensive to implement.

b. Maintenance Factors. These account for about 25% of all ECPs. These factors are unsatisfactory conditions identified by users and maintainers and often related to the improper operation or maintenance of the item, or unreliable components. Deficiencies identified in depot level repair reports and test centre reports also fall into this category.

c. Performance Improvements. These ECPs account for about 5% of all received engineering changes and are designed to enhance the capabilities of the weapon system. ECPs in this category represent the most time-consuming and expensive changes to implement.

56. The concept of configuration control does not imply that only one configuration is authorized for use at any one time and that configuration, once defined, should never change. It is a common and acceptable practice for more than one configuration to be authorized for use, and entirely normal for the configuration of the equipment to change extensively over the in-service stage. A common example is a fleet modification that can only be implemented in phases, over a defined period, on a limited amount of equipment, at any one time.

57. Figure 7-6 lists a set of tasks to be performed as part of the configuration control process. Most of these are described in more detail on the MA&S Desktop (MAT KNet).

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5%

70%

25%

Uncontrolled FactorsMaintenance FactorsPerformance Factors

Figure 7-5 Ratio of Factors Leading to ECPs

Configuration Control Tasks

Establish a Change Control Process Produce Initial Version Description Documents

Establish a Change Control Board Establish Software Libraries

Establish a Formal Release System Process the Release of Software

Process Changes Identify and Establish Interface Control Requirements

Initiate the Set-up of Documentation Issue Working Instructions

Process the Release of Documentation Conduct Reviews on Contractor’s Program

Retrieve Obsolete Data Conduct Subcontractor CM Program Audits

Figure 7-6 Configuration Control Task List

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INITIATING/REVIEWING CHANGE REQUESTS

58. A contractor is expected to conform to the requirements specified in the contract unless directed otherwise. Such authorization can be obtained through the submission and approval of appropriate change requests. Some change requests involve permanent changes to the authorized baseline(s), while others only authorize limited variations. Since any change to the baseline must be considered a serious matter, the EMT must apply adequate change control procedures over all types of change.

59. Engineering Change Proposal (ECP). ECPs are documents used to propose alterations to the configuration of a CI and/or its configuration documentation after the formal establishment of a configuration baseline. Engineering changes that affect the form, fit, or function of a designated CI are referred to as “Class I” changes and must be approved by the Design Authority. The approval authority for “Class II” changes may reside in the Design Authority or be delegated to the customer’s representative at the point of production (i.e. DQA Representative), or to the contractor. ECPs during manufacturing may be initiated by DND or the contractor, but are generally submitted by the contractor for approval by the PM or ESM. Only ECPs that are essential or offer significant benefit to DND should be considered.

60. Two supporting documents normally submitted with ECPs are NORs and SCNs. NORs are used to support the evaluation of ECPs in that they describe any changes required to each drawing, specification or other configuration documentation. SCNs are used to support the evaluation of ECPs in that they describe any changes required to each affected CI specification if the related ECP were approved. The contractor shall attach NORs and SCNs to each ECP.

61. The precise point (i.e. calendar date, lot number or production unit serial number) at which an approved engineering change is to become part of the configuration baseline is stated in the ECP. The contractor must report any deviation from this prescribed production change point to the PM through a Production Change Point Record.

62. Request for Deviation (RFD). When, prior to the manufacture of an item, it is determined that it will be impossible to satisfy the mandatory requirements of the specification or drawings, the contractor shall prepare and submit an RFD to the PM. Also, the PM may direct the contractor to submit the change as a Class I ECP rather than an RFD when it is determined that the change should be permanent.

63. RFDs are used to obtain written authorization, prior to the manufacture of a CI, to depart from a particular performance or design requirement of a specification, drawing or other document for a specific number of units or a specific period of time. A deviation differs from an engineering change in that an approved engineering change requires a corresponding revision of the documentation defining the applicable CI, whereas a deviation does not require revisions of the applicable specifications or drawings.

64. Requests for Waiver (RFWs). RFWs are used to request written authorization to accept a CI that, during production or after having been submitted for inspection, is found to depart from specified requirements but nevertheless is considered suitable for use either “As Is” or after rework by an approved method. The contractor should be advised that the waiver is acceptable on a “One Time Only Basis.” This ensures that the integrity of all other specifications/drawings etc. is maintained.

65. The change control process is illustrated in Figure 7-7.

66. Configuration Control Board (CCB). The formal review of all requests for change should be conducted through the CCB. This board is composed of technical and administrative representatives who are responsible for assessing the impact of change requests and recommending approval or disapproval. See Figure 7-8 for an example of a CCB.

67. A typical DND CCB consists of the Chairman (PM or appointee); representatives from the operators and trainers, logistics, engineering, procurement, and testing communities; and the CCB secretariat, who acts as the executive secretary for the board and is responsible for all administrative actions. The contractor will also have a CCB composed of the necessary technical and logistics offices to determine the impact of a proposed engineering change, before officially submitting it to the Government.

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R eviewSubmission andD istribute to CCB

Collect and RecordCCB decisions

Distribute CCB minutes toall CCB members

Complete Submissi onForms ReflectingApproval /Disapproval

Forward CompletedForm to ContractingOfficer

Ove rsee im plementationof Approved ECPs

Contractor’sECP , RFD, RFWSubmissi ons

DND Submissions

Obtain Funding Approval through BMT

C CB Reviews Submiss ion

Figure 7-7 Change Request Process

CCB Chairman(PM or ESM)

ESM(TechnicalGuidance)

SRB(if applicable)

CCB Secretariat

PFM(Project Funding)

PWGSC(Contract Officer)

ILS(LogisticsSupport)

SE(System Engineering)

PD(Operations Rep)

Figure 7-8 Configuration Control Board

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68. On complex or high-risk projects, it may be necessary that the DND or the contractor CCB approve each change proposal twice. Initially, approval is sought to determine if the change is valid and resources should be committed to find a solution. Once a solution is found and the level of effort is established, CCB approval should be sought a second time to determine if the change should be implemented. Some changes have to be evaluated by a separate body called the Interface Control Working Group (ICWG) if the scope of the change alters external or key internal interfaces of the system.



ACMP-3, Configuration Control

D-02-006-008/SG-001, Design Change, Deviation and Waiver Procedure

Form DND 672, Design Change/Deviation Request

Form DND 675, Request for Waiver

Form DND 678, Production Change Point Record




ESMs

CONFIGURATION STATUS ACCOUNTING

69. The purpose of Configuration Status Accounting (CSA) is to ensure access to the most accurate information on each CI. An adequate and accurate CSA system will enhance the program and functional manager’s capabilities to identify, produce, inspect, deliver, operate, maintain, and repair CIs in a timely, efficient and economical manner. CSA records and reports on all required information to manage a configuration effectively including:

a. A list of the approved configuration documentation and identification numbers;

b. The status of proposed changes, deviations, and waivers to the configuration;

c. The implementation status of approved changes; and

d. The configuration of all units of the CI in the operational inventory.

70. CSA ties together all the information gathered through the activities performed by the other CM functions. It provides documentation that describes the status of the CI design and the final configuration of each delivered CI. The effectiveness of the status accounting function is dependent on the quality of the configuration identification and control efforts.

71. CM software tools (i.e. MASIS SAP R/3 and OmegaPS) have taken over much of the routine information management work associated with CSA. The status recording of configuration changes and the provision of CSA reports are primary functions of these systems, but they serve other CM functions as well. Figure 7-9 lists some of the tasks that pertain to CSA.

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Configuration Status Accounting Tasks

Define the CSA System Requirements Make Provision for Initial Reports

Establish Automated CSA Update CSA Records

Define CSA Report Requirements Produce Initial Version Description Documents

Establish Initial CSA Records Generate CSA Reports

Figure 7-9 CSA Task List

72. The CSA change control record is monitored to ensure the system is capable of tracking all proposed changes from the first communication of an idea (e.g. letter or preliminary ECP) to either official notice of disapproval/approval or formal issuance of a final negotiated contract modification. The CSA system also contains general information about the change and tracks specific events and dates associated with the processing of the change. The CSA system contains the required information for the preliminary proposals, formal proposals and for corrections or revisions to the proposal(s), and it should provide correlation with all related and companion (other contractors’) proposals.



Configuration Management Plan (as per contract)

D-01-002-007/SG-004, Configuration Management Status Accounting



(NATO) ACMP-3, Configuration Status Accounting

Contract CM Staff


PWGSC Contract Officer

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CONFIGURATION AUDITS

INTRODUCTION

73. Configuration Audits (CA) are held to verify the conformance of the product to specifications, drawings, interface control documents and other contractual requirements. Normally CAs are conducted at the contractor’s site by the contractor’s configuration manager prior to the start of production. Generally, Government project staff attend and observe.

74. Depending on circumstances, various kinds of audits are utilized, ranging from the audit of a prototype model through to the audit of an entire fleet. A Functional Configuration Audit (FCA) checks that an item has achieved the performance and functional characteristics specified in its configuration documents. A Physical Configuration Audit (PCA) checks that the “As Built” configuration conforms to its product configuration documents.

75. During the in-service stage, CAs are conducted when a modification is made which affects the functional or physical characteristics of the equipment or system. When a maintenance contractor performs a modification on in-service equipment, the ESM should perform a CA on the modified equipment/system in the same manner as if the audits were conducted prior to the production of the original.

76. Figure 7-10 lists some typical tasks performed as part of a CA.

Configuration Audit Task

Coordinate Formal Configuration Audits with Customer and Contractor

Develop/Produce a Written Audit Plan

Conduct Formal Configuration Audits

Write the Audit Report

Ensure the Audit Report is Approved

Figure 7-10 Configuration Audit Task List

OVERSEEING THE CONTRACTOR’S CONFIGURATION AUDIT PROGRAM

77. The following individuals should be present at formal configuration audits:

a. The Project Manager;

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b. The Configuration Manager;

c. The Test Manager;

d. The QA Manager;

e. Contractor technical representatives; and

f. Government representatives.

78. Pre-audit – Procedures. It is necessary to provide the name, organization and security clearance of each participating individual to the contractor prior to each audit. The audit data provided by the contractor is reviewed a minimum of two weeks prior to scheduled audit. This data package identifies the:

a. Contractor representation;

b. Identification of CIs to be audited;

c. Identification of drawings and other documentation;

d. Nomenclature;

e. Specification identification number;

f. CI number;

g. Current listing of all ECPs, deviations and waivers against the CI (both proposed or approved); and

h. Status of the test program to verify CIs with automatic test equipment (when applicable).

79. Post-audit – Procedures. The minutes of each audit must be reviewed to ensure that they reflect all significant PM inputs. Partial completion of FCA is acknowledged for those CIs whose final approval is contingent upon completion of integrated systems testing. Formal acknowledgement is provided to the contractor of the accomplishment of each audit after receipt of the audit minutes. The PM establishes the adequacy of the contractor’s audit performance by notification of:

a. Approval. To indicate that the audit was satisfactorily completed.

b. Contingent Approval. To indicate that the audit is not considered accomplished because some action items still remain outstanding (costs incurred for the resolution of all outstanding action items are the contractor’s responsibility).

c. Disapproval. To indicate that the audit was seriously inadequate.

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ACMP-5, Configuration Audits

CMP (as per contract)

D-01-002-007/SG-005, Configuration Management Audits




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PART 8

INTEGRATED LOGISTICS SUPPORT (ILS)

GENERAL

INTRODUCTION TO ILS

1. Integrated Logistics Support (ILS) is a discipline in which the supportability requirements for a system or equipment are addressed throughout all stages of its life cycle. The stage where the greatest payoff can be achieved is the design stage, in which supportability requirements, effects and constraints can be made known directly to the designers. This is as equally applicable to completely new designs as it is to the design stages of modifications and engineering changes that are being considered for in-service vehicles, systems and equipment. An overview of ILS is available on the MA&S Desktop (to be renamed the MAT KNet in the near future).

2. The objective of ILS is to field supportable equipment or defence systems that meet the requirements as stated by the users at the most affordable total cost of ownership. In order to achieve this objective, it is DND policy that an ILS Program (ILSP) be established for each procurement project to address all aspects of support to the equipment or defence system.

3. The ILSP begins as a broad objective-oriented document and becomes a more specific tasking and scheduling document as the project progresses through the acquisition process. It should be tailored to the characteristics, needs and complexity of each project.

4. ILS Definition. In order to relate to the ILS concept, one must understand what the term logistics means. The Society of Logistics Engineers (SOLE) defines “logistics” as “The art and science of management, engineering and technical activities concerned with requirements, design, supplying/maintaining resources to support objectives, plans, and operations.” ILS, in turn, is defined as a unified and interactive approach to the managerial and technical activities necessary to:

a. Cause support considerations to influence both requirements and design;

b. Define support requirements that are optimally related to the design and each other;

c. Acquire the required support; and

d. Provide the required support over the life of the equipment both efficiently and economically.

5. ILS Elements. An ILS element is defined as “A generic grouping of logistic support resources or activities needed to support the conduct of operations and maintenance on a system or equipment that require separate planning and management.” Collectively, the ILS elements comprise the total logistic support resources and management functions necessary to meet system operations and readiness objectives. The following ILS elements have been recognised as requirements for any ILS program.

a. Maintenance Planning. The planning and analysis necessary to define the required maintenance resources to support a system throughout its life cycle. This includes the definition of maintenance tasks, levels of maintenance and repair, and life cycle costs.

b. Support and Test Equipment. The identification of, planning for, and acquisition of all the equipment necessary to support the operation of a weapon system. It includes ground handling and maintenance equipment, tools, metrology and calibration equipment, test equipment for on and off system maintenance and computer software associated with test equipment.

c. Supply Support. All management actions, procedures, and techniques used to determine requirements to acquire, catalogue, receive, store, transfer, issue, and dispose of secondary items. This includes provisioning for both initial support and replenishment supply support.

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M A IN T E N A N C E P L A N N IN G

S U PP O R T & T E S T E Q U IP M E N T

SU P P L Y SU P P O R T

PH S & T

T E C H N IC A L D A T A

F A C IL IT IE S

M A N P O W E R

T R A IN IN G

C O M P U T E R R E SO U R C E SD E S IG N IN T E R F A C E

IL S E L E M E N T S

Figure 8-1 ILS Elements

d. Packaging, Handling, Storage and Transportability (PHS&T). The resources, processes, procedures, design considerations, and methods to ensure that all system, equipment, and support items are preserved, packaged, handled and transported properly, including environmental considerations, equipment preservation requirements for short-term and long-term storage, and transportability.

e. Technical Data. Recorded information, regardless of the form or method, for the recording of a scientific or technical nature (including software documentation). This term does not include computer software or data incidental to contract administration, such as financial and/or management information.

f. Facilities. The permanent, semi-permanent, or temporary real property assets required to support the system, including conducting studies to define facilities or facility improvements, locations, space needs, utilities, environmental requirements, real estate requirements, and equipment.

g. Manpower and Personnel. The identification and acquisition of military and civilian personnel with the skills to operate and support the system over its lifetime at peacetime and wartime rates.

h. Training. The processes, procedures, techniques, training devices, and equipment used to train civilian and military personnel to operate and support the system. This includes individual and crew training (both initial and continuation); new equipment training; formal, and on-the-job training; and logistics support planning for training equipment and training device acquisition and installation.

i. Computer Resources Support. The facilities, hardware, system software, software development and support tools, documentation, and people needed to operate and support embedded computer systems.

j. Design Interface. The relationship of logistics-related design parameters such as reliability and maintainability, to readiness and support resources requirements. These logistics related design parameters are expressed in operational terms rather than using inherent values, and specifically relate to system readiness objectives and support costs.

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6. Relationship to Systems Engineering and Maintenance. The objectives of systems engineering and ILS often overlap, although, for large projects, each may be conducted by a separated organization. Systems engineering transforms requirements for operational capabilities into real systems that eventually enter into service. The successful fielding of new operational systems cannot be achieved without close correlation of performance and support characteristics. Much of the data required to conduct ILS planning arises from systems engineering (e.g. failure rates, failure modes, mandatory maintenance actions). Figure 8-2 illustrates the ILS products used in system engineering.

DEFINITION OFNEED

IMPLEMENTATION

SYST

EMEN

GIN

EER

ING

ILS SYSTEM

MAINTENANCECONCEPT

PRELIMINARYSUPPORTCRITERIA

DRAFT INTEGRATEDLOGISTICS SUPPORT

PLAN

SYSTEMMAINTENANCE

FUNCTIONS

ALLOCATION OFSUPPORTABILITY

CRITERIA

UPDATEDLOGISTICSSUPPORTANALYSIS

ILS PLAN

SYSTEM MAINTENANCECONCEPT

PRELIMINARY SUPPORTCRITERIA

MISSION REQUIREMENTSANALYSIS

SYSTEM DEVELOPMENT

PROJECTPLANNING ANDDEVELOPMENT

PROJECTDEFINITION

LSA

SYSTEMSYNTHESIS

LSA

SYSTEMOPTIMIZATION

SYSTEMMAINTENANCE

FUNCTIONS

SYSTEMFUNCTIONAL

ANALYSISSYSTEM

MAINTENANCECONCEPT

PRELIMINARYSUPPORT CRITERIA

MISSIONREQUIREMENTS

ANALYSIS

ILS PLAN

DETAILED SYSTEMSPECIFICATION

Figure 8-2 ILS Relationship to System Engineering

7. ILS Element Interrelationship. In order to be efficient, the ILS elements need to form a tightly coupled system with each element driving changes to, and responding to changes in, all the other ILS elements. The application of any change to the equipment support system should bring about a dynamic response among all the ILS elements. The purpose of this section is to illustrate the tight coupling of ILS elements.

8. Each ILS element can be considered as a separate view of an asset’s support, just as each page of a blueprint is a separate view of a house. Although the blueprint is separated into pages, a change on one page cannot be made without requiring changes to other pages. If a porch is added to the first floor, the front and side views of the house change. If portions of the first floor are removed, additional structural support is needed on the other floors. The application of ILS elements is similar. On one page, we look at the training aspect, on another we examine the configuration, on another we examine the documentation, on another we examine the supply arrangements, and on the last page we see a maintenance view. Although the ILS elements are applied using varying processes, they are still different views of the support arrangements for the same asset. As a result, when changes are made to any aspect of the asset, it follows that most or all of the ILS views of the asset also change.

9. As an illustration of the coupling among ILS elements and how this coupling can contribute to the total implementation cost, consider a rack of radio equipment. In this rack there is a Power Supply Module, Control Module, Transmitter Module, and Receiver Module. From maintenance reports, the ESM has determined that the

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power supply module receives more maintenance time than the other modules combined, but is located in the least accessible position on the rack. This makes the power supply maintenance inspection take one hour when it should take about 30 minutes. As a result, the ESM is considering a change to the configuration of the rack by switching the positions of the Power Supply and Receiver Modules. First impressions would lead to the conclusion that this is a trivial change, however when the elements of the change are collated and tallied, the cost becomes non-trivial.

10. Assume there are 20 of these systems used operationally across DND with 2 complete systems stored as spare inventory. First of all, the configuration change needs to be incorporated in the system’s technical documentation. As a result of a review of the Technical Documentation, there are 15 pages of documentation that require modification at a cost of one person-day (PD) for a technical writer.

Technical Data Cost = 1 PD at $500/day = $500

11. There is also an existing formal course on this equipment and the configuration change requires the updating of two lesson plans at a cost of two person-days for a trainer.

Technical Training Cost = 2 PD at $500/day = $1000

12. Switching the position of the two modules also means that some of the connecting cables between the Power Supply, Receiver and other modules are either too long or too short and need to be replaced (assume five RF cables per system).

Supply Cost = 5 cables x (20 operational systems + 2 spare systems) x $100/cable = $11 000

13. This may also impact the supply chain if a new supply source needs to be found for the cables. There is no disposal cost associated with the old cables since they can probably be reused on other projects.

14. If we assume that the time taken for maintenance personnel to implement the change can be incorporated into the regular preventive maintenance, the total installation cost of the change is:

Installation Cost = 2 PD’s at $500/day = $1000

15. The total cost of the change is $13 500. Although the change appears to be trivial at first, there is a significant cost associated with the configuration change. It is important to note that although this change is driven by maintenance, it has an effect on Configuration Management, Technical Data Management, Training, and Supply and Inventory. As a result, it is very important that all ILS elements be considered before a change is made to any equipment or system.

16. Understanding how the individual ILS elements are interdependent is critical. If DND is to realise any benefit from the implementation of MA&S, the application of ILS needs careful attention. Although maintenance management tends to drive the bulk of changes to the ILS system, it cannot be overlooked that an asset’s ILS system must work in concert with planned and unplanned engineering and maintenance activities.

EMT LEADERSHIP RESPONSIBILITIES

17. The EMT has significant responsibilities related to ILS, and the activities described in this part affect EMT operations such as project management, EMT resource management, system engineering, maintenance management, supply support management and procurement. It is up to EMT Leaders to ensure that EMT business plans reflect the resource and funding requirements generated through ILS.

18. ILS planning for any program or project should begin as early as possible. ILS elements must be considered in an orderly way at the right time to support a system with people, equipment, data, and facilities. The ILS manager must, where possible, influence the design of a new system during demonstration and validation and full-scale engineering development, and provide for the support of the system during the in-service stage.

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19. During the in-service stage, the EMT uses and maintains the ILS tools provided by the project team to provide support to the equipment. Under Optimized Weapons System Support (OWSM), the EMT must not only continually evaluate the ILS support provided to the equipment, but also the organization providing that support, and continually seek improvements to reduce the overall support costs for the equipment. During acquisition, the reduction of support costs is primarily addressed through design changes, but during the in-service phase, any reduction in support costs is primarily associated with the ILS system.

20. A-LM-505-001/AG-001, Guidance Manual – Integrated Logistics Support, and A-LM-505-001/AG-002, Guidance Manual – Logistics Support Analysis, do not explicitly support contracting out for ILS services; however, the intent is met. As such, these references will have to be tailored to meet the new ways DND is doing business. These are saving DND money. For ILS, this means usually all of the following procurement methods are used:

a. System life cycle processes are the responsibility of the contractor;

b. Life cycle support for the system is the responsibility of the contractor; and

c. A performance-oriented approach is used to specify a level of service instead of a level of resources.



A-LM-505-001/AG-001, Guidance Manual – Integrated Logistics Support

A-LM-505-001/AG-002, Guidance Manual for Logistics Support Analysis

DAOD 3007-0, Integrated Logistics Support Policy

DGLEPM Divisional Instruction 300-3, Integrated Logistics Support


NDHQ Policy Directive P3/87, Integrated Logistics Support (ILS) Policy

DLESS 8

DMASP 5-6 (ILS Policy)

LOGISTICS SUPPORT ANALYSIS (LSA)

INTRODUCTION

21. LSA takes place in the context of Logistic Engineering. Logistic engineering includes the design and development of support-related activities. This includes the establishment of logistic support requirements including the identification of support constraints and the development of a concept of support. The development of logistic support elements (e.g. training, test equipment) takes place under logistic engineering as does the test and evaluation of the final support capability. LSA is defined as an iterative process by which the logistic support necessary for a new system is identified and evaluated. LSA determines the supportability objectives but, by itself, does not direct design activity.

22. Figure 8-3 illustrates the LSA process to determine the support requirements in response to the identified failure modes of a system. FMECA data is used to identify the tasks necessary to restore a failed system to a serviceable condition. This data in turn leads to the identification of the resources and capabilities required to carry out the maintenance task. The actual capabilities that are established through this analysis usually take into account pre-established requirements for maximum allowable repair times, fleet serviceability and other critical support criteria. Ideally, the results of the analysis are recorded in a Logistics Support Analysis Record (LSAR), which is maintained and used as a management tool throughout the in-service life of the equipment.

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Figure 8-3 LSA Process

TASKS

23. DND LSA programs often follow the guidelines established in A-LM-505-001/AG-002 and A-LM-505-001/ AG-003. A-LM-505-001/AG-003 calls up fifteen main logistics tasks and over sixty-five subtasks related to the design of the logistic support package for a system. All or some of these tasks usually are imposed on contractors via the SOW, CDRL and DID, to the extent prescribed by the applicable Project Office or EMT to facilitate efficient and economic in-service support. The resulting data is entered into the LSAR. The LSAR database, often called the Equipment Supportability Database (ESD) in DND, is then able to provide reports to equipment management. DND uses the MASIS OmegaPS CASS Suite to perform LSA.

24. In the hands of a skilled practitioner, the LSAR supports many important aspects of in-service life cycle management. In particular, the differences between planned and actual values of key performance indicators for the logistics system can be used to identify areas requiring investigation and improvement.

LSA TECHNIQUES

25. LSA employs a number of analytical techniques. Those techniques which apply to the determination of resource requirements for two or more ILS elements are: Failure Modes Effects and Criticality Analysis (FMECA); Level of Repair Analysis (LORA); Life Cycle Cost (LCC); Analysis Reliability Centred Maintenance (RCM); Maintenance Task Analysis (MTA); Sparing Analysis and Survivability Analysis.

26. Failure Modes Effects and Criticality Analysis (FMECA). The FMECA is an essential function in the design process that provides input to the identification of functional requirements. The principal purpose of FMECA is to identify potential design weaknesses through systematic consideration of:

a. The likely modes in which a component or equipment can fail;

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b. Causes for each mode of failure; and

c. The effects of each failure.

27. Failure modes are used to identify maintenance tasks. The results of the FMECA provide input to the:

a. Identification of requirements for corrective maintenance;

b. Performance of a RCM analysis; and

c. Development of troubleshooting procedures in technical manuals/orders.

28. Level of Repair Analysis (LORA). The LORA is an analytical technique used to determine whether an item should be repaired, and if so, at what level of maintenance. OmegaPS Analyzer is the MASIS tool for LORA.

29. Reliability Centred Maintenance (RCM). Preventive maintenance requirements are determined by an analytical process called RCM (a structured analysis of the consequence of failures and the need to prevent them). The objective of RCM analysis is to:

a. Realize the inherent safety and reliability of an equipment;

b. Restore inherent levels when deterioration occurs;

c. Obtain information about design features which adversely impact inherent safety or reliability; and

d. Accomplish the above at the lowest practical cost.

30. FMECA results provide an essential input to RCM analysis. Failure modes that impact safety or mission performance or which require costly repair are identified as candidates for preventive maintenance tasks. Preventive maintenance task selections include crew monitoring procedures, scheduled inspection procedures, and, when justified, a scheduled replacement or repair procedure. The application of RCM results in:

a. Identification of failure modes requiring additional design evaluation;

b. Establishment of scheduled preventive maintenance tasks for inclusion in technical manuals/orders; and

c. Establishment of overhaul selection procedures for end items and components.

31. Maintenance Task Analysis (MTA). The MTA consists of a detailed analysis of the operation and maintenance tasks required for a new system. The specific objectives of this analytical activity are to:

a. Identify logistics support resource requirement for each task;

b. Identify new or critical logistics support resource requirements;

c. Identify transportability requirements;

d. Identify support requirements which exceed established goals, thresholds, or constraints;

e. Provide data to support the development of design alternatives to reduce O&M costs, optimize logistics support resource requirements, or enhance readiness; and

f. Provide source data for preparation of required ILS documents (e.g., technical manuals, training programs).

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32. Task analysis breaks each maintenance task into specific sub-tasks in order to identify skill requirements, elapsed time, task frequency, personnel required at each maintenance level, and character of the repair action (e.g., adjustment/alignment, inspection, replace, overhaul, trouble-shoot). All task analyses should be completed during Project Implementation. Task analyses of proposed design changes will be required during Implementation and In-service phases.

33. Survivability Analysis. The survivability characteristics of a system directly impact its wartime sustainability. A Survivability Analysis serves to influence system and component design and to identify the additional logistics support resources required to achieve wartime readiness objectives. The frequency and severity of combat damage occurrences are estimated through combat simulations and tests. Additional manpower, supply support, transportability, and skills associated with restoring a battle damaged system to ready status are then computed.


34. The Maintenance Plan often is a deliverable document of a contract for a system or equipment. It is called up in the Data Item Description (DID) which identifies the format and content to be provided. There is no standard format for a maintenance plan within the Canadian Forces. Guidance on maintenance planning is available on the MA&S Desktop (MAT KNet).

35. Figure 8-4 illustrates an idealized Maintenance Plan Development cycle. It shows that operational capabilities are obtained through a systematic process in which the characteristics, properties and needs of the equipment serve as inputs for the design of the overall system. Changes to the equipment or its usage will influence the support system. Equipment designs that cannot be supported within parameters acceptable to the user often will be replaced or redesigned.

O P SC O N C E P T

M A IN TC O N C E P T

O P SR E Q T

D E S IG N R & M

R C M

F M E C A

C A P IT A L &O P C O S T

L C CST U D IE S

M A IN T E N A N C E P L A N S

L S A R

L C CS U PP O R TC O S T S

L O R A

SP A R IN GA N A L Y S IS

M T A

V A L U EE N G

D E S IG N E N G IN E E R IN G

E Q U IP M E N T L O G IS T IC S U P P O R T

L O G IS T IC E N G IN E E R IN G

M A IN T E N A N C E P L A N N IN G

Figure 8-4 Maintenance Plan Development

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MONITORING AND UPDATING SUPPORT REQUIREMENTS

36. Logistics support requirements, as identified in the definition stage of a project’s development, do not remain constant but continue to evolve throughout the life of the equipment in direct response to changes to the operational concept or concept of support. Once in service, changes in operational concept such as mission or function may impact on the logistics support requirements by:

a. Altering the scope or extent of training;

b. Increasing or decreasing the use of ammunition or other consumable; or

c. Shortening or lengthening the expected life span of the equipment or system through increased or decreased usage.

37. Changes in the concept of support of an equipment or system can also impact on logistics support requirements and may entail:

a. In-service maintenance of materiel that was originally to be serviced by the manufacturer or supplier or vice versa;

b. Transfer of a maintenance function from one line or level of repair to another; or

c. Implementation of a new maintenance function or design modification.

38. Logistics support monitoring is critical to maintain effectiveness, efficiency and economy through the management of assigned materiel. Assigned EMT specialists (normally ESMs) must continually monitor their support requirements and take timely action in response to changing conditions. Figure 8-5 illustrates the support monitoring process.

O p e r a t io n a l C o n c e p t

M a in t e n a n c e C o n c e p t

C h a n g in g C o n d i t io n s

R E V I E W E S T A B L I S H E DL O G I S T I C S U P P O R T R E S O U R C E S

E f f e c t iv e n e s s ?

E f f i c i e n c y ?

E c o n o m y ?

A D J U S TS U P P O R T R E S O U R C E S

Figure 8-5 Logistics Support Monitoring

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39. ELDs are developed by Project Managers or ESMs and are promulgated to appropriate commands, weapon system operators and maintainers as guidance and direction for the logistics support of their equipment throughout its life cycle. All ELDs should be reviewed on a periodic basis, to identify those which require updating as a result of changes to utilisation rates, allocation, attrition rates, maintenance policy, warranty or any other factor that might have an impact on logistic support. As a materiel management tools, ELDs are living documents that must be kept current and responsive to change. The data they contain will be used in numerous ongoing planning processes such as supply support.



A-LM-505-001/AG-003, Military Standard, Logistics Support Analysis (MIL-STD-1388-1A)

A-LM-505-001/AG-004, DoD Requirements for a Logistic Support Analysis Records (MIL-STD-1388-2B)

D-01-002-011/SG-001, Preparation, Format and Contents of Equipment Logistics Directives (ELDs)

DGLEPM Manual, Integrated Logistics Support


Contractor Engineering Staff

Divisional Engineering Staff

Divisional/Directorate Engineering Staff

Divisional/Directorate ILS Staffs

Divisional/Directorate PMs

DMASP 5-6 (ILS Policy)

ESMs

Project Sponsors

Project/Matrix ILS Staff

SMs

INITIAL PROVISIONING (IP)

INTRODUCTION

40. IP is an essential and vital component of the ILS plan. IP is the process of determining the range and quantity of items (e.g. spares, repair parts, special tools and tooling, test and support equipment) required to support and maintain an item for an initial period of service. IP phases include:

a. The identification of items of supply;

b. The establishment of data for cataloguing, technical manuals and allowance list preparation; and

c. The preparation of instructions to ensure delivery of the necessary support items with the associated end items.

41. IP requirements often represent a substantial portion of the project budget.

42. IP requirements are highly dependent on the equipment or system’s operational role and concept of support. IP should be initiated once it is determined that CF personnel will maintain the new equipment. Under OWSM, it is likely that IP will be a contractor responsibility since the contractor will most likely be supporting the system. Project and procurement staffs must consider IP requirements in the early stage of the definition phase to ensure that adequate support is available during the initial period of operation until normal follow-on support can be implemented.

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43. IP is also the vehicle to identify those items that require a lifetime buy. It is likely that some components will not be manufactured over the life of the equipment (especially electronic components); therefore, provision needs to be made for a lifetime buy of these materials. It is far more economical at this time to use current production and tooling capabilities that attempt to procure custom work later on.

44. For a more detailed description of the IP process and IP team members, refer to A-LM-505-630/JS-001 (MMI 1630).

EMT ACTIVITIES DURING THE IP PROCESS

45. The aim of IP is to ensure that supply support is available to sustain a new weapon system or equipment from the time of its introduction into service until such time as the normal reprovisioning system can assume responsibility for its life cycle support. An IP plan is generally developed during the project’s definition phase and encompasses the definition, procurement, and distribution of the initial spares support for new equipment or a new system. This includes initial spares support for associated support equipment (e.g. test sets, tools, calibration equipment). IP is the method used to identify required spares. It is not the mechanism to procure these spares. The EMT Leader and/or ESM must ensure that funding is available after the IP process is completed for purchasing these spares.

46. During the IP process, assigned ESMs are responsible for:

a. Determining the sparing requirements;

b. Identifying IP funding;

c. Preparing the Interim Spares Parts List (ISPL); and

d. Lifetime buy of spares.

47. EMT involvement in IP includes the following:

a. Operational Concept;

b. Concept of Support/Maintenance Plan;

c. Usage Rates;

d. Family Tree;

e. Equipment Registration Number (ERN)/Equipment Application Code (EAC);

f. Milestones;

g. Distribution Accounts; and

h. Source of Funding for the IP Conference (IPC) .

48. Liaison with the Divisional/Directorate procurement staff is necessary to ensure that adequate funds are available to support the IP requirement. If available, contractor inputs must be reviewed prior to the IP conference. The contractor normally provides the following information for IP conferences:

a. Provisioning Parts Breakdown (PPB);

b. Recommended Spare Parts List (RSPL);

c. Long Lead Time Items (LLTI);

d. Materiel Change Notices (MCN); and

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e. Supplementary Provisioning Technical Documentation (SPTD).

49. Even in the largest Major Crown Project (MCPs), funding for support resources is comparatively limited and in great demand. Every requirement, including spare part provisioning, must be carefully monitored to ensure cost effectiveness and operational efficiency.

50. The need for lifetime buys of spares has to be confirmed and determined if essential. When considered essential, the shelf life of such spares must be investigated and taken into account. Refer to C-02-005-013/ AM-000, Maintenance Policy – Shelf Life and Storage of Materiel, for further information on shelf life.

51. Typical issues to be considered by EMT staffs during the IP process are:

a. Delivery of spares;

b. Equipment that is difficult to support;

c. Non-compliance by the contractor;

d. Modifications;

e. Lack of funding for spares; and

f. Mean Time Between Failure (MTBF) not as stipulated.

EQUIPMENT SUPPORT LIST (ESL)

52. The ESL is a logistics management publication produced as part of the IP process and maintained as part of the post-provisioning or follow-on support process. The data contained in the ESL is initially used to identify and procure spare parts in support of new equipment. This data is essential for the downstream maintenance support of the equipment, and for the establishment of an effective equipment configuration database for Equipment Systems Management (ESM).

53. ESLs are a by-product of the IP computerized process and are updated throughout the life cycle of the equipment. They provide users with the equipment top-down breakdown and a means of identifying components by reference (part) numbers, NSNs and/or reference designations for both the Parts Provisioning Breakdown (PPB) and the RSPLs. ESLs are updated continually to reflect changes to individual items as changes are processed on the CFSS Master Database (MDB). By using the ESL change notices, ESMs are able to maintain equipment configuration control.

54. The maintenance of the Equipment Item File (EIF), the supporting database of the ESL, to reflect current configuration data is the responsibility of all logistics and maintenance staff associated with supporting the operational capabilities of the equipment. In-service changes to the equipment configuration and associated logistics support can occur for a variety of reasons. These changes may originate internally within NDHQ, or externally from a base, unit, contractor, etc. The following is a partial listing of possible reasons for changes:

a. Modifications;

b. Change(s) in manufacturer or contractor data (e.g., equipment configuration, NSN, scales, reference number, additions or deletions of components);

c. Engineering Change Notices (ECNs);

d. Parts Change Bulletins;

e. MCNs; or

f. Other changes originating internally or externally and approved by NDHQ authorities.

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55. The production of the ESL and the maintenance of its supporting database, the Equipment Information File (EIF), is essential for the effective life cycle support of equipment currently in service with the CF. It provides a means of maintaining logistics support data reflecting the latest available equipment support information. The item relationships that are established are vital to EMT members, specifically ESMs and SMs, as well as Command and Base staffs, and Units throughout the CF.

PROVISION OF NEW ITEM ADVICE DURING THE IP PROCESS

56. There are fundamental changes taking place in the area of Materiel Identification leveraging MASIS and specifically the MASIS Materiel Master Record as the initial corporate master item data record for DND. It is recommended that EMTs make contact with DMASP 5-3-2 for the latest process and enablement developments in the area of Materiel Identification and how it impacts the IP Process.

57. Within EMTs, SMs are responsible for generating, updating and maintaining all the information. To assist them, computer-generated reports are produced at periodic intervals or on demand from SMs.

MATERIEL CHANGE NOTICES (MCNs)

58. MCNs are generated when suppliers wish to propose in-lieu items. When this occurs, the impact of MCNs should be considered on materiel life cycle management and materiel authorization documents, including Equipment Check Lists (ECLs). Generally, MCNs are submitted for any reason deemed appropriate by the supplier such as product improvement, reliability, increased shelf life, etc. They are generated only during a procurement activity and are generally received through DTICS. The use of MCNs is restricted to current production contracts for which Provisioning Parts Breakdowns (PPB) exists.

59. MCNs may create situations in which more than one item is entered in the inventory to perform the same function. When this is the case, close liaison between SMs and LCMMs within the EMT is necessary to ensure that appropriate action is taken to differentiate between items when required. Frequently, DND is obliged to approve or disapprove applications for MCNs submitted by manufacturers within a very limited time. Failure to take action within the required time limit may result in the manufacturer assuming to have received approval.

60. Usually, MCN submissions made by manufacturers are for the long-term benefit of the end users. However, from a life cycle management perspective, EMTs should seriously consider the implications of introducing different items to perform one function. Particular attention should be paid to the effects of MCNs on items physically held in pack-up and flyaway kits and similar assemblages.

PRODUCT WARRANTY REQUIREMENTS

61. All government contracts for the acquisition of equipment or weapons systems contain warranty clauses that were accepted on the assessment of tenders. All manufacturers offer some form of explicit warranty to the purchase. It must be ensured that the type of warranty offered is acceptable to the Crown. Requirements for warranty clauses other that those provided by General Conditions, must be specifically stated in a PI by the ESMs/Operational Specialists.

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A-LM-505-020/JS-001 (MMI 1020), Materiel Management Instruction – Warranties

A-LM-505-054/JS-001 (MMI 1054), Procedures for the Production and Maintenance of Equipment Support Lists (ESLs)

A-LM-505-312/JS-001 (MMI 1312), Procurement Instruments – Preparation Distribution and Follow Up

A-LM-505-455/JS-001 (MMI 1455), Material Change Notices (MCNs)

A-LM-505-621/JS-001 (MMI 1621), New Item Advice, Stock Number Conversion and Sentencing Actions, Catalogue Advice or Confirmation Request (CACR)

A-LM-505-630/JS-001 (MMI 1630), Initial Supply Support for New Equipment

C-02-005-013/AM-000, Shelf Life and Storage of Material

C-04-005-022/AG-002, Policy and Management Procedures – Mobile Support Equipment Warranty

D-01-100-215/SF-000, Specification for Preparation of Materiel Change Notices (MCN) for Canadian Forces Equipment


Standard Acquisition Clauses and Conditions (Cat. No. P60-411-1991E)

DMASP 4 (Procurement Policy)

DMASP 5-3-2 (Materiel Identification)

DMMD 2

DTICS 3 (IP Policy)

ESMs

PMs/ILS Managers

SMs

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PART 9

RELIABILITY AND MAINTAINABILITY (R&M)

INTRODUCTION

DEFINITION

1. The two principal cost drivers associated with any equipment/system are the performance and supportability requirements. Obviously, the higher the specified performance, the higher quality components are needed and therefore the greater the cost of equipment acquisition and sparing. Similarly, if there is a requirement for high operational availability, there must be a greater emphasis on the use of such things as automated equipment monitoring, redundant configurations or advanced automated test equipment. This drives up the complexity of the overall system and hence the acquisition and support cost. Performance and operational availability also work against each other. The demand for increased performance generally drives an increase in preventive maintenance, which reduces operational availability. Since these cost drivers have a direct impact on the overall life cycle cost as well as the acquisition cost, they are treated collectively as Reliability and Maintainability (R&M) requirements. These requirements are verified through R&M analysis. Thus, R&M is a comprehensive effort to ensure that the equipment meets the mission requirements while reducing the overall cost of ownership.

2. There are various published definitions for reliability and maintainability. For the purposes of this publication, the following definitions apply:

a. Reliability is defined as the ability of an item to perform its intended function for a specified interval under stated conditions.

b. Maintainability is defined as the ability of an item to be retained in (or restored to) a specified condition within a specified period of time, when maintenance is performed under stated conditions by trained personnel using prescribed procedures and resources.

3. Other terms such as RAM (Reliability, Availability and Maintainability) and RAM-D (Reliability, Availability, Maintainability and Durability) are also employed to describe the R&M disciplines. The term “dependability” is commonly used to describe R&M in the context of commercial organizations.

4. For a more detailed list of definitions and metrics applicable to R&M in the DND context, refer to the MA&S desktop (to be renamed the MAT KNet in the near future).

APPLICATION

5. R&M analysis is a proactive approach to equipment management that attempts to identify problems at the earliest possible point in the life cycle. The earlier problems are identified, the cheaper they are to resolve. As a guideline, for every $1 spent on correcting deficiencies in the design phase, $1000 would have been spent to correct the same deficiency had it been detected in-service. Since there is generally no physical equipment to test until production, R&M requirements are verified in the early stages by analysis. Whatever technical information is available at that specific stage of the project is subject to a complex mathematical process heavily based in probabilities. R&M does not provide a definitive answer, but indicates the likelihood of failure and assesses the cause of failure.

6. The system’s R&M requirements can change as the project evolves through its life cycle. They are initially established in the Options Analysis Phase and refined in the Definition phase. Depending on the progress of the procurement activity, changes to the R&M requirements may occur during the Implementation Phase. Contractors may further expand requirements and/or allocate them to lower levels as part of their development process. If a modification, upgrade, life extension or similar activity occurs, R&M requirements may be revised during the In-Service Stage. Even in the disposal phase, R&M analysis can be used to determine the suitability of a system for other roles.

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7. R&M analysis cuts across both the ILS and the systems engineering disciplines. During development, R&M work is primarily directed toward the systems engineering effort. In this instance, the R&M analysis is used to ensure that the equipment/system design will meet the established performance requirements. Should any shortfall be found, the R&M analysis can guide the design engineers on where improvements need to be made. Once the design phase is completed (i.e. by critical design review) approximately 90% of the asset’s LCC is fixed. Thus, early use of R&M analyses can have a significant impact on both equipment performance and equipment sustainment.

8. Once the system enters the in-service stage, the equipment design is relatively fixed and compliant with the desired performance requirements. As a result, any resolution of observed R&M performance deficiencies, or any LCC optimization effort, focuses primarily on the ILS system. Under the OWSM concept, this includes both the ILS support activities and the ILS support organization. In the event of a new requirement or a change in the equipment’s physical environment, an engineering change may be required. At this point the R&M analysis of the original design may be revised and the design modification assessed. The analysis of the resulting engineering change will indicate either a change in the R&M capabilities of the system or a modification to the equipment and/or its associated ILS support system.

9. R&M applies equally to software systems as well as physical equipment. Given the central role that computer-based systems play in DND operations, software reliability should be treated as a crucial requirement applicable to all weapon systems, sensor systems, and support systems. The impact of software failure may be enormous in comparison to the development costs and result in reduced operational capabilities, compromised execution of operational missions, loss of lives and materiel in combat, loss of data or legal action against the Crown. The challenge for DND in issuing RFP’s is to specify quantifiable and sensible software reliability requirements. There is a strong non-linear, almost exponential, relationship between increasing software reliability and system cost. An essential part of the system engineering process is to establish a sensible level of reliability that considers the importance of the system’s mission, the consequences of failure and reconciling these with the available budget and schedule.

10. DND requires certain types of R&M data to assist with in-service supportability management of fielded systems. This is typically a subset of the R&M data used by the contractor to design and develop the logistics support for a system. This information is generally available in the form of a database to facilitate supportability analyses and one such database is the LSAR. If DND plans to acquire supportability data from the contractor, then relevant R&M related data elements should be identified for inclusion in the deliverable data. The decision of which data elements to request should be based on an understanding of how R&M data will be used by DND in the in-service stage. For example, will the data be used to monitor the effectiveness of the logistics support activities, or to forecast changes in the requirement for logistics support resources due to changes in system configuration, operating profile or R&M performance.



DAOD 3010-0, R&M Policy


DLESS 3 (Test & Evaluation/R&M)

DMASP 5-7 (R&M Policy Analyst)

DMMS 3-2

DTA 4 (MP) 3 (R&M Airworthiness Requirements)

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R&M IN THE EMT

11. The EMT should be concerned about the performance and supportability of its assigned equipment and perform R&M analyses on all materiel. Depending on the nature of the R&M requirements, the R&M program for each equipment/system will be tailored to the management needs of the EMT. Any R&M models developed during acquisition represent a valuable tool to the EMT and should be used and validated once the equipment is in-service. Under OWSM, maintenance decisions will be made on the basis of LCC. As a result, it is essential to increase the reliability of the LCC estimate in order to evolve the OWSM configuration toward an optimal configuration. The overall framework for the application of R&M disciplines within the EMT is the R&M Concept of Operations (CONOPS) available from the MA&S Desktop (MAT KNet).


12. R&M analysis identifies the likelihood and frequency of equipment failure. Given this information, the EMT is in a position to develop the maintenance plan. Since the failed component is known, decisions can be made on the repair action required and estimates can be prepared of the repair time. It is important to remember that these R&M inputs are estimates. As a result, the more accurately the R&M effort can model the equipment, the more optimal the maintenance program estimates will be. R&M inputs contribute to the following aspects of the maintenance planning process:

a. Corrective Maintenance (CM). The requirement for CM is derived from the Failure Modes, Effects & Criticality Analysis (FMECA), which identifies all of the different ways in which a system can fail. The optimal approach for performing CM tasks, including fault detection and isolation (troubleshooting) strategies, is determined by maintainability and testability analysis.

b. Preventive Maintenance (PM). The requirement for PM work is derived from Reliability-Centered Maintenance Analysis (RCMA), which identifies the system failure modes that could and should be prevented. The preferred approach for performing preventive maintenance tasks, including the type of task (e.g. inspection, health monitoring, age-based replacement) and the task frequency, is also determined by RCMA.

c. Level of Repair. The maintenance level (i.e. first, second, third, fourth, or none) that should repair a failed item is determined by Level of Repair Analysis (LORA), which requires failure rate and repair time estimates from R&M predictions.

d. Maintenance Resources. The magnitude of maintenance resources needed to support fielded systems (e.g. numbers of personnel, capacity of facilities, quantity of special tools, etc.) is based on failure rate and repair time estimates from R&M predictions.

ILS PLANNING

13. In addition to the engineering and maintenance activities, R&M data is also critical to the establishment and maintenance of the ILS system, specifically as it relates to IP. R&M data contributes to the following aspects of the initial provisioning process.

a. Demand Rate. One of the main inputs to sparing analysis is the demand rate for each item. For most items, the primary driver of the demand rate is the failure rate. The failure rate is then adjusted by a number of factors to obtain the demand rate. For example, some portion of demand may arise because an item is lost or damaged in storage, rather than because of a system failure. The failure rate for each spare is determined by reliability prediction. Some of the adjustment factors required to convert a failure rate to a demand rate are also obtained from R&M analyses. These include the percentage of failed spares that will have to be discarded (from FMECA) and the probability that a demand will be created when no failure occurred, due to a false alarm or an inadequate fault isolation procedure.

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b. Turn-around Time. Another key input to sparing analysis is the time required to fix a spare assembly and return it to inventory. Depending on the maintenance plan for the spare, this “turn-around” time may be dominated by non-R&M factors such as delays associated with shipping the item to and from an R & O contractor. However for some types of spares, the active repair time will be a significant driver of turn-around time. This mean active repair time, or mean time to repair (MTTR), is determined from maintainability predictions.

c. Use of LSAR. An LSAR database is a well-proven method for recording the R&M inputs used in initial provisioning, particularly if these records are to be transferred to another support organization. The “B” tables of the LSAR database can document the results of R&M predictions, FMECA and related information. The current standard is MIL-PRF-49506; however, MIL-STD-1388-2B is also still available from limited suppliers.

14. DND’s investment in enterprise equipment management systems, such as MASIS, will improve the ability of the EMT to collect and process maintenance data as part of an overall R&M program. Since OWSM allows for a full spectrum of support, there is some concern that outsourcing of maintenance (where access to MASIS is not available) will result in information gaps that would add uncertainty to the overall R&M parameters. The EMT should be aware of the R&M data requirements and make provision for this in any outsourcing contract.

R&M SUPPORT

15. DND-wide R&M support is centered in the DMASP Directorate within ADM(Mat). DMASP 5-7 is responsible for developing and promulgating R&M policy and guidance, ensuring R&M functionality in corporate systems (such as MASIS) and supporting common R&M training for DND participants. One of the main information sources for practical R&M guidance is the MA&S Desktop (MAT KNet).

16. ADM(Mat) also sponsors the R&M Working Group which is the forum for coordinating all common R&M matters. Representatives from DGAEPM, DGLEPM, DGMEPM and DMASP attend regular meetings with invitees from DQA, QETE and outside agencies depending on the agenda.



A-LM-505-001/AG-002, Guidance Manual – Integrated Logistics Support Guidance Manual

A-LM-505-001/AG-004, Requirements for a LSAR

A-LM-505-487/JS-001 (MMI 1487), Reliability and Maintainability Management Guidelines

DAOD 3010-0, R&M Policy


NATO ARMP-6 In-service R&M

R&M CONOPS

Reliability and Maintainability Course Notes

DLESS 3 (Test & Evaluation/R&M)

DMASP 5-7 (R&M Policy Analyst)

DMMS 3-2

DTA 4 (MP) 3 (R&M Airworthiness Requirements)

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PART 10

TECHNICAL DATA MANAGEMENT

OVERVIEW

TECHNICAL DATA

1. Effective materiel management depends on the availability of technical data that is appropriate, current and readily accessible, throughout the life cycle of the associated equipment or defence system. The term “Technical Data” applies to any recorded information of a technical or scientific nature (regardless of format, medium or method of recording) and includes software documentation. It does not apply to computer software or data incidental to contract administration, finance, or management. Some of the various activities that rely upon the availability of technical data include:

a. Demonstrating contractual compliance;

b. Supporting the systems engineering and technical effort;

c. Evaluating and improving system performance;

d. Optimizing the use of logistics support resources;

e. Identifying and controlling CI baselines;

f. Assessing the impact of engineering change proposals and modifications;

g. Supporting the procurement/reprovisioning of goods, services or data; and

h. Any other activity which may benefit from the analysis of asset information.

2. The information conveyed by this data is a vital tool in the equipment program management process. Technical data can be expensive to acquire and resource intensive to manage, therefore only the minimum amount technical data deemed essential to the acquisition and logistics support of the materiel must be acquired and maintained.

TECHNICAL DATA MANAGEMENT (TDM)

3. TDM is the means by which DND plans, collects, organizes, stores, controls, disseminates, uses and disposes of its technical data. Applying a structured management discipline to technical data is important throughout the equipment’s life cycle. During the acquisition stage of the life cycle, it is important to obtain appropriate and sufficient technical data to meet the equipment’s acquisition and in-service support needs. During the in-service stage, the technical data holdings must be managed to ensure the applicable data is complete, relevant, current, secure and available. During disposal it is important to ensure that only surplus technical data is disposed of in accordance with approved policy and procedures, and that disposal is timely. All these tasks require a strict management discipline.

4. Technical data deliverables associated with equipment may consist of technical manuals, engineering drawings, logistics support analysis data, specification requirements, verification data, configuration management data or any other data required by DND. Deliverable data items are defined by the DND TAs in terms of scope, content, quantity, medium, etc. Data requirements may be included as line items in a contract, in a Statement of Work (SOW) or by the selection and inclusion of Data Item Descriptions (DIDs) and a Contract Data Requirements List (CDRL).

5. A Technical Data Management Plan (TDMP) is developed to document the rationale for the selection of technical data, the strategies governing their acquisition and specific plans for their transfer, storage, distribution, access, retrieval and change control. With respect to new defence system acquisitions, the TDMP shall be prepared prior to the solicitation of proposals. NDHQ Instruction 01/95, Defence System Technical Data Management, declares, “The magnitude and type of technical data shall be the minimum required to effectively acquire the defence system and maintain it in service.”

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6. A formal Data Requirements Review Board (DRRB) must be convened prior to issuing a solicitation for proposals for any new defence project having a total cost in excess of three million dollars. The Board shall review and provide comments on the TA’s recommendations for acquiring technical data as outlined in the TDMP. The TDMP should also be reviewed periodically during the acquisition process and where changes in engineering, maintenance or logistics support concepts or philosophies warrant appropriate adjustments shall be made to the technical data requirements.

TDM RESPONSIBILITIES

7. Either project management specialists or the EMT performs most TDM activities. The EMT Leader is required to incorporate data acquisition, management and ultimately disposal into the project management plan and transition to in-service support plan. Many of the individuals who use this data are specialists in procurement, supply or finance. These users rely on the designated TA to ensure that the data they receive is complete, current and technically correct. Data must be made available to the following:

a. Engineering staff to support design development and selection;

b. Logistics support staff to support the definition and optimization of support requirements;

c. Configuration management staff to support the establishment and control of equipment baselines;

d. Publication and engineering drawing support staff for registration;

e. Procurement staff for the preparation of procurement instruments;

f. Supply staff to support provisioning/reprovisioning and repair and overhaul;

g. Quality assurance control staff; and

h. Field units/users.

8. Figure 10-1 describes the TDM interfaces that EMT members must establish to effectively support the acquisition and in-service support (deployment) of equipment/defence system data.

9. The responsibility for the acquisition and administration of technical data are shared among the following:

a. Director Technical Information and Codification Services (DTICS). DTICS is responsible for the departmental publishing policy, design, format, and production of DND publications. DTICS supports capital acquisition programs as well as O&M activities through Regional Individual Standing Offers (RISO), National Individual Standing Offer (NISO), Publication Authorship Service (PAS) and Publication Management Service (PMS). DTICS 3 is responsible for publications and DTICS 4 is responsible for drawings. DTICS 3 also has the responsibility for the duties of data custodian and registration of all DND publications on national distribution through the NDID and the registration of equipment through the Equipment Identification Database (EID). DTICS is the DND authority for the following:

(1) Publishing services including contractual and production (through RISO and NISO);

(2) Coordinating the production/acquisition and subsequent revision of engineering drawings and associated data;

(3) Providing the quality assurance action required to ensure that all technical data is produced, acquired and revised in accordance with stated quality requirements; and

(4) Managing the introduction of new or revised data, once acquired and approved by the DND TA, into the ADM(Mat) Technical Resource Centre.

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TDM Stakeholders Responsibilities

DTICS DTICS is responsible for the Technical Document Management System (TDMS), specifically:

a. The management of paper-based and electronic technical documents and drawings;

b. The management of the repository of technical documents that hold the knowledge / content IAW DMASP / EPM policies (the “instance” of the data and document standards);

c. The specification of TDMS functional requirements and the control of configuration for the approved copies of documentation.

DMASP 5 DND policy and direction for the acquisition and management of Technical Documentation and Technical Data Packages (TDPs).

DMASP 2 MA&S Information Management, specifically overarching policy for MA&S information management (including definitions and processes).

EPMs The acquisition and management of content / technical data, including TDP, Technical Publications, and data element definitions.

MASIS Maintain equipment records and configuration;

Maintain (where applicable) the LSAR (via OmegaPS CASS);

Figure 10-1 Technical Data Management Interfaces

b. NDHQ Divisions and their EMTs. Responsible for the staffing, authorization and coordination of all technical aspects of the acquisition including:

(1) Obtaining materiel procurement authorization and funding;

(2) Defining distribution and control requirements;

(3) Initiating the acquisition process;

(4) Providing a technical description that is adequate to support the procurement of the publication;

(5) Providing technical guidance during the acquisition cycle; and

(6) Reviewing and evaluating the technical adequacy of published works.

c. Supply Manager (SM). Responsible for acquiring published works through commercial and foreign government sources.

DEVELOPMENT OF TECHNICAL DATA REQUIREMENTS

10. The development of technical data requirements is normally part of the definition of technical requirements and is usually carried out by the project engineering staff (for major acquisition projects) or ESMs with the assistance of DTICS (for minor projects and O&M activities). The technical data requirements of each functional area (e.g. systems engineering, integrated logistics support or configuration management) are detailed in the E&SMP or PMP. The need to acquire technical data will vary depending on the scope and complexity of the

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acquisition. For simple OTS procurement projects, the data requirements are generally minimal since the design is mature and the logistics support requirements are well established. The data requirements of a major development project may be quite extensive, as the emerging design must be evaluated and the logistics support requirements analyzed and optimized. The key factors that impact the technical data requirements are:

a. Design complexity, maturity and technology (i.e. new or proven);

b. Maintenance philosophies and concepts;

c. Logistics support philosophies and concepts;

d. Testing considerations and concepts; and

e. The TDM strategy.

11. Once appropriate and sufficient technical data is acquired to support defence materiel throughout its life cycle, the EMT and assigned TAs must maintain the integrity of the data if it is to retain its full value as a materiel management tool. Although the primary responsibility for managing DND technical data holdings is vested with TAs, some data management responsibilities are shared with other Departmental and external agencies. The following agencies/repositories are valid resources for TDM guidance:

a. OEMs. Contractors and suppliers who are responsible for the provision of publication management support.

b. CFSS Master Database (MDB). Responsible for the gathering and distribution of data concerning parts usage rates and reprovisioning data.

c. Environmental MMISs. Responsible for the gathering, retention, organization and distribution of reliability and maintainability data such as failure rates, down time and repair costs.

12. The administration and management of technical data repositories should be contracted out wherever the business case warrants. The preferred custodian for technical data procured under operations and maintenance (O&M) funding is the prime contractor. Access to such repositories (i.e. transmission, storage and retrieval) should be by electronic means wherever possible. DTICS 3 centrally manages, controls, and updates the Technical Data Repository. This does not imply that all data is held by DTICS 3. TAs must be knowledgeable of where their respective repositories are located and the manner in which DTICS can assist them to ensure that the integrity of the data is maintained. TAs must also update their technical data on a regular basis. ESMs should be reminded that all new or revised technical data is to be registered and does not become officially sanctioned technical data until it has been processed through DTICS.

13. In strategic acquisition projects, the preferred practice is to have the prime contractor, OEM, or the repair and overhaul contractor’s technical publications unit manage the data under either a stand-alone contract, or as part of a TIES or logistic support contract. Specific provisions may be applied for the management of certain portions of the TDP, such as the configuration data. In addition, contractors with such repository management responsibilities also will be engaged contractually to provide Publication Management Services (PMS) for the maintenance of equipment CFTOs.

PERIODIC REVIEW AND UPDATING

14. Although custodial duties for repositories may rest with other agencies, EMTs ultimately are responsible for ensuring that the data held by these agencies is current, valid and appropriate to DND requirements. To ensure the integrity of the data, a record must be maintained within the EMT of their holdings, including location and status, and reviews must be conducted by appropriate EMT personnel to identify surplus data or data that requires revision. This review includes updating the NDID/EID database. In addition, EMTs must control the distribution and release of all DND technical data to protect the Department’s legal and financial interests.

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15. Figure 10-2 illustrates responsibilities of EMTs and specifically the duties of assigned TAs and those of the data custodian during the in-service stage of the materiel life cycle. The amount of effort required to effectively perform these duties will depend on the quantity, complexity and diversity of the technical data held. Therefore, it is imperative that data holdings be optimized to reduce redundancy (duplication) and to facilitate the ongoing management of this valuable corporate resource.

ESM

ENGINEERING & TECHNICAL EFFORT

• periodic reviews of data to evaluate continued revelence• evaluation of data amendments to ensure technical accuracy and conformance

to established baselines• verification/approval of design data for use in procurement• definition of distribution and data restriction requirements

RECORDING

• file indexing system• data retrieval system• technical data lists• data

STORING

• site security• environmental controls• packaging requirements• security markings• use of archives

CONTROLLING

• security classification• controlled distribution• proprietary rights• copyrights• licensing agreements

UPDATING

• changes and revisions• supplements• accessions• rescissions• digital data refreshing

Figure 10-2 Custodial Duties of Technical Data Repositories



DAOD 3014, MA&S Information Management

DAOD 6000, Information Management Policy

MA&S CONOPS, Technical Document Management

NDHQ Instruction 1/95, Defence System Technical Data Management

DMASP 5-3

DTICS

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MATERIEL MASTER RECORD (MMR)

INTRODUCTION

16. Materiel identification is under transition and EMTs should contact DMASP 5-3 for up-to-date information as DND is implementing MASIS and CF Supply System Upgrade (CFSSU) as the key support elements for all MA&S activities. The scope of MASIS and CFSSU includes all MA&S end-to-end information requirements within DND. The stakeholder functions associated with these requirements include systems engineering, Integrated Logistics Support (ILS), equipment configuration, TDM, asset management, maintenance management, project management, performance management, operational support, business management, decision support analysis and contract management in MASIS, along with material and inventory management in CFSSU. MASIS will be the system of record for MA&S. Thus, MASIS has a requirement to contain adequate technical information to interface to a number of other departmental information systems such as CFSSU, CGCS, the FMAS and the Human Resources Management System (HRMS).

17. Materiel Master Records (MMRs), created in MASIS, provide MA&S master data for use in engineering, maintenance, procurement of goods and services, supply management, and also provide source data for the generation of master data information for other departmental systems and users. As materiel identification is central to MA&S, the requirement is for MASIS to create, maintain and provide a MMR with adequate data to support virtually all materiel management activities within the MA&S process.

18. All materiel cataloguing will be done via the MASIS and Canadian Government Cataloguing System (CGCS)/DTICS interface. CFSSU will thus require information from the MMR to create and maintain an Item Master Record in the supply system. Further, that information must include cataloguing references in the form of NSN and the Permanent System Control Numbers (PSCN) in order to enable procurement, receipt and the inventory of materiel. These information requirements will be achieved through the MASIS/CFSSU/CGCS interfaces, allowing MMRs to be created in MASIS and shared with CFSSU.

MATERIEL MASTER RECORD (MMR)

19. The MMR data will be used across all MA&S organizations to manage materiel. The MMR must contain adequate financial, technical, supply and procurement information to allow DND to effectively manage materiel. It contains two levels of information the Enterprise information that defines the Materiel and the Plant information unique to specific DND organizations. An MMR can be initiated with as little as five data fields; Description, Unit of Measure, Materiel Group (Stock Class in CFSSU), Unit Price and Supply Manager Code. The actual data fields required are based on the specific Engineering and Maintenance (E&M) requirements as dictated by the type of materiel and/or the characteristics of the equipment.

CONSOLIDATED AREA REPOSITORY (CAR)

20. In order for MASIS to accept materiel record data from different sources, such as industry, E&M legacy systems, and CGCS, as well as to maintain data integrity, a Consolidated Area Repository (CAR) has been built to enable MASIS users to perform specific data and record management functions. These functions include assembling an item record and approving records as clean data for creation of the MMR. The CAR is the MASIS consolidated data repository, where data owners deposit and maintain the master data necessary to create the MMR in MASIS. The CAR will contain all fields of data intended for the enterprise level of the MMR. The CAR is used as a pre-processing facility to draw information from various sources. The information can be combined and manipulated in the CAR to create a composite MMR and associated data in order to provide the user with the most accurate information possible. The CAR has the functionality to permit the addition, manipulation, consolidation, editing and deletion of data records. It has functionality to permit the creation of a MMR directly into SAP and the functionality to permit the CAR record to be refreshed from the SAP MMRs. Hence the CAR has a role in the steady state creation of the MMR.

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OVERARCHING MMR CONCEPT AND OPERATING PRINCIPLES

21. MA&S requires that materiel be catalogued to identify the item of supply and to enable engineering and maintenance data to be captured, assessed, and synthesized. However, not all materiel will be subject to national technical compliance, nor require the application of engineering rigor by a TA. The requirement for full materiel identification (i.e. the creation of an MMR) is based on the principles that:

a. The concept of Fit, Form and Function is the basis for materiel identification in DND; and

b. The NSN/PSCN is an attribute of the MMR that is the link between MASIS, the CGCS, FMAS and CFSSU. This functions in two ways:

(1) To offer a common ID for all systems; and

(2) To identify the Item of Supply.

EQUIPMENT MANAGEMENT TEAM (EMT)

22. Based on the structure designed by each MASIS client organization, EMTs will be assigned responsibility to manage individual records that directly support the MA&S requirements. Client organizations should assign a lead TA within the EMT who will be the owner of the materiel data and thus the owner of the MMR. As the EMT or class desk is responsible for the completion of the CAR record, the continuation or the initiation of the cataloguing process is best performed by the SM while the TA completes the “Where Used” technical data process. Both processes cannot happen in isolation and the EMT or class desk must work together to complete pertinent data fields.

SUPPLY MANAGER (SM)

23. The SM will be responsible for providing or confirming all supply data residing in the CAR record. The SM will take the lead completing all fields required by DTICS for cataloguing and for initiating the request to the CGCS. When a PSCN is deemed not adequate for the proposed materiel, the TA will provide justification for the assignment of an NSN versus a PSCN.

TECHNICAL AUTHORITY (TA)

24. The TA is responsible for all technical data residing in the CAR record, and will be the owner of the MMR. The TA will take the lead in ensuring that the required technical fields are completed, including the Higher Order Assembly (HOA) of the materiel where required and the Materiel Type identified by the “Intended / Where Used” concept. It should be noted that the introduction of the HOA as defined in MASIS will impact and change the “Lead LCMM” concept. Whereas the lead LCMM was assigned based on the most use of the materiel, the HOA concept will assign the lead LCMM based on the most critical application or the highest degree of technical compliance. The TA’s will be responsible for verifying and approving all Technical in Lieu (TILs) in the CAR.

25. The TA is to qualify the TIL (child to parent relationship of FIT, FORM and FUNCTION) based on the technical evaluation of the data and the intended use of the materiel. As the TA is the final authority for the technical data, the TA must then approve the creation of the MMR in the CAR. Upon MMR creation, the TA shall return a notification email to the Originator to indicate the status of the MMR.



Overarching CONOPS for Materiel Master Record, 8 Nov 2002

DMASP 5-3

PMO MASIS

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TECHNICAL PUBLICATIONS

INTRODUCTION

26. Prior to initiating production of, or adopting, a new technical publication, the EMT must ensure that no existing publication within DND would satisfy the requirement. DTICS 3-4-6-3, or the applicable SM, can provide this information based on the equipment ERN/EAC.

PRIMARY ACQUISITION METHOD

27. Capital Acquisition. Capital acquisition contracts require the contractor to provide existing publications if they satisfy DND requirements. Should the contractor’s existing publications not meet the requirement, then the contractor should be tasked to develop, write, validate, translate and perform a Translation Accuracy Check (TAC) [if required], produce reproducibles, and provide the required quantities of technical publications in printed and/or electronic form. EMT responsibility normally includes obtaining materiel procurement authorization and establishing the necessary funding. The deliverables should include the electronic Masters for each publication, plus provide DND the rights to have revisions carried out by a third party PMS contractor.

28. When a new publication is required in support of O&M activities, the following options are available:

a. Publication Authorship Service (PAS);

b. In-house production via Departmental Standing Offers; or

c. Off-the-shelf procurement.

PUBLICATION AUTHORSHIP SERVICE (PAS) CONTRACT

29. Under a PAS type of contract, the contractor is responsible for the development (authoring) of the publication to ensure that it accurately reflects the equipment or process it supports. This may also involve translation services and publication services. Capital and O&M documentation may specify delivery in electronic media such as CD-ROM, Interactive Electronic Technical Manual (IETM) or Standard Generalized Mark-up Language (SGML).

PUBLICATION MANAGEMENT SERVICE (PMS)

30. Publication change/revision activity falls under NP/O&M funding. When in-house facilities are not used, and the workload warrants, a PMS contract may be initiated. Routine, long term requirements usually are identified in Weapon Systems Support Plans, Equipment Support Plans and /or Class Plans. Under this type of contract, the contractor is responsible for the management of the publication(s) to ensure that they accurately reflect the equipment or processes they support. PMS contracts are not used to create new publications. PMS contracts are used to manage a large volume of publications and hasten the production or publication of changes and revisions.

31. With respect to publication changes/revisions, the contractor may be required to develop, write, validate, translate and perform a TAC for all recommended changes. They will also produce reproducibles, and provide the required quantities of technical publications in printed and/or electronic form for distribution to all concerned organizations. In the event that the amendment (or the aggregate of changes) to a publication exceeds 50% of the original content, a revision/reissue of the publication should be considered. A PMS contract may be used to create the revision.

32. It should be noted that RISO and NISO contracts may be used to conduct publication activities. DTICS and Divisional BMTs should be contacted for advice on the availability of funds under these contracts.

DEVELOPING TECHNICAL PUBLICATIONS THROUGH DEPARTMENTAL STANDING OFFER

33. Technical publication requirements for minor acquisition projects or O&M activities can often be satisfied through the use of Departmental facilities, RISO/NISO agreements and Local Purchase Orders (LPO). These methods of acquiring technical data should be an EMTs preferred choice, providing that adequate facilities and qualified human resources are available to do the job within the established monetary and time constraints.

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34. Departmental development and production may be generally more economical than the contractual method, but it is very labour intensive for the EMT. This process requires:

a. Close management of the development and writing processes;

b. Validating the publication content; and

c. When required, conducting translation and TAC activities.

35. Technical publications may also be developed through the use of internal staff resources such as ADM(Mat) Field Units, and through DTICS PD for publishing. The EMT Leader should base any decision to use departmental resources on the following factors:

a. The OEM may not have sufficient qualified technical staff available at the time the data is required;

b. The urgency with which the data is required may preclude the use of the procurement process;

c. The availability of highly skilled DND/CF staff may make it more beneficial to execute the preparation or revision departmentally;

d. A trade-off analysis may indicate that departmental development or revision is more cost effective; or

e. The classified nature of the data or publications is such that departmental production may be the only viable option.

COMMERCIAL AND FOREIGN GOVERNMENT PUBLICATIONS

36. A significant portion of the technical publications acquired by DND is published works that are procured from commercial or foreign government sources. These types of publications shall be acquired when they adequately satisfy a technical data requirement for either DND-wide distribution or limited use as specialist information. DND requires the right to translate and/or reproduce for DND requirements. DND also requires the rights to have a CTAT/ITAR qualified PMS contractor hold and maintain the publications (especially for Foreign Military Publications). Published works can be acquired:

a. For review and evaluation (two copies only). Where copies of a specific publication are obtained to determine its suitability to satisfy a data requirement;

b. For adoption and national distribution. Where a publication has been evaluated and approved for use within the Department; and

c. As specialist information (two copies only). Where publications such as technical handbooks, process standards, or general technical specifications are required for reference purposes.

CHANGES AND REVISIONS TO TECHNICAL PUBLICATIONS

37. Changes to technical publications are promulgated when text or figures require alteration, when new material must be inserted, or redundant material deleted. A revised publication is normally required when a major change, or accumulated minor changes, affect 50% or more of the total page count of a current publication.

38. Revisions to official publications, such as CFTOs, require a historical record. In most locations, the replaced pages are scrapped. However, it is possible that questions may arise as to the validity and suitability of the new version that will require knowledge of the older versions of the publication. EMTs, often through their PMS contracts, must ensure that an appropriate history of all publication changes is maintained.

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39. Existing commercial and foreign military publications are not subject to change or revision action. However, to meet DND requirements, the EMTs may request a Publication Supplement be prepared (i.e. to expand or change information) for use in conjunction with a commercial or foreign military drawing/publication.

NATIONAL DEFENCE INDEX OF DOCUMENTATION (NDID) / EQUIPMENT IDENTIFICATION AND DOCUMENTATION DATABASE (EID)

40. An NDID number must be reserved with DTICS 3 for all publications being adopted for national distribution. A NDID number must also be reserved for those specialist information publications (“R” program of the NDID system) where follow-up services are deemed essential. Publication numbers become official only after distribution and promulgation in the monthly Accession and Change List.

41. The data held on the NDID/EID databases require periodic review to ensure that the integrity of all the databases is upheld. The NDID database tracks the assignments of NDID numbers to all publications and documentation (administrative, technical, operational, etc.) The EID database tracks the assignments of ERNs and EACs to systems on behalf of EMTs/ESMs. The OPI is DTICS 3. Both the databases can be used to produce various reports such as ERN listing by ESMs and OPI listings for publications.

42. The NDID and EID data are captured quarterly and published as C-00-000-000/AX-001 on CD-ROM.



A-AD-100-100/AG-000, National Defence Publishing Policy and Administration Procedures

A-LM-505-010/JS-001 (MMI 1010), Material Management Instruction – Official Languages Requirements for Technical Documentation

C-01-100-100/AG-006, Specification – Writing, Format and Production of Technical Publications

DISTRIBUTION, CONTROL AND STORAGE OF TECHNICAL DATA

INTRODUCTION

43. Publications are issued on the authority of the Minister of National Defence, the Deputy Minister or the Chief of Defence Staff. Reference publications, including engineering and evaluation reports and commercial or foreign military manuals distributed for reference purposes only, are indexed in the NDID database to facilitate distribution through DND channels. These publications are advertised in the Accession and Change Lists and are identified by a program control identifier. “R” publications are produced, stocked and distributed by Director Technical Information Codification Services Publication Depot (DTICS PD). All classified publications and amendments shall be requisitioned offline by message, and must be safeguarded as detailed in the National Defence Security Instructions.

LITIGATION

44. Technical data is acquired by DND under a variety of conditions and international arrangements, many of which involve patent, proprietary or other rights, or a relationship in confidence1 between DND and the owner or supplier of the technical data. The release of technical data by members of the CF or DND civilian employees to anyone other than the owner or the supplier of the data, without the owner or supplier’s consent, may lead to litigation against the Crown. Technical data shall only be released to non-DND agencies pursuant to CFAO 57-13.

1 The term “in confidence” relates to the industrial sensitivity and confidentiality of the technical data provided to DND, from the

point of view of the owner or supplier, and does not relate to a military security classification.

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45. In the procurement phase the EMT/TA should have a clear idea of how the technical Data will be utilized and maintained, and the necessary clauses inserted in the contract. The “old” clause “for DND use” is no longer truly applicable since so much of TDP support is now outsourced.

46. The release of technical data to non-DND agencies is coordinated through DTICS PD (for CF publications, engineering drawings and associated data) or ADM(IE) [for construction drawings and specifications]. All direct-from-industry enquiries or requests for the sale, loan or free issue of CF publications must be forwarded to DTICS PD for their action. DTICS will assist EMTs to obtain the necessary clearance for the release of the technical data, or to establish the conditions under which it may be released.

DISTRIBUTION OF TECHNICAL DATA

47. The distribution of technical data normally is authorized by ESMs/TAs. With the exception of “D” series specifications and standards, the DTICS PD distributes all publications. DTICS PD distributes the publications to a local distribution point. ESMs/TAs are responsible to create distribution lists for issuing publications to user Units.

STORING AND ARCHIVING TECHNICAL DATA

48. Although the bulk of DND’s technical data holdings are held in data repositories such as DTICS and at contractor sites, some of the data will be stored within EMTs. This data may be stored on-site, or at some low cost storage facility such as the National Defence Records and Library Services (NDRLS) or for out-of-service technical data, the National Archives of Canada (NAC) Federal Records Centre. In either case, the data must be readily accessible to EMT members and other users.

49. EMTs must ensure that all on-site facilities provide adequate security protection (e.g. security containers or restricted access) for classified or controlled distribution data, in accordance with NDHQ Security Orders. Access to technical data, regardless of its security classification, should be restricted to only those personnel with a valid requirement for the data.

50. There must be adequate environmental controls available in storage areas to protect sensitive materials such as microfilm, magnetic tape and computer disks. A schedule must be established for periodically refreshing technical data stored on magnetic media such as audio and videotapes, or computer disks or tapes. It is important to periodically access the requirement to store dormant data (i.e. data having a low rate of usage) on site. If the data is still of historical value (e.g. project design documentation), it should be moved to an archive through NDRLS.

51. Records that are deemed no longer of value to the DND/CF are only transferred to the NAC facility if they are of lasting historical significance. Otherwise, they are disposed of. It should be ensured that the technical data retrieval system (paper or electronic) is updated to reflect the location and status of all data items to be stored, including historical data held in archives.

FILING/RETRIEVAL OF TECHNICAL DATA

52. A logical and systematic approach for identifying and recording technical data holdings is the cornerstone of an effective data management system. Data is only useful if it is accessible, and accessibility means knowing what is available, and where it is. Although there are no mandatory procedures established for the indexing and recording of equipment working files, there are well established methodologies that provide an excellent model on which to develop and manage EMT files. One such example is the NDHQ File Indexing System (NDRLS). Since a significant amount of technical data arrives in electronic form, an electronic file plan is just as vital as an EMT file plan.

53. The term “Working Files” refers to files that are established and maintained by the EMT members to facilitate their day-to-day functions. Working files should contain working copies of data items (e.g. drawings, specifications and data lists) and copies of related correspondence such as messages and memoranda. They should never contain official (original) DND records or electronic files.

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54. Master copies and reproducibles of data items such as engineering drawings and technical publication manuscripts must be kept separate from working files. These types of data are control copies and must be safeguarded against accidental loss or corruption. A working copy of these items should be made and used for day-to-day requirements. The original manuscripts should be clearly marked and stored in a safe location by DTICS or the contractor. In some cases, the appropriate configuration data repositories are used for this purpose.

55. NDRLS provides functional guidance on record management to all elements of the DND/CF. Within NDHQ they are responsible for providing records management, library, mail and messenger services through decentralised Information Service Points (ISPs). In addition, NDRLS ISPs act as the custodian for the official files and records of NDHQ clients.

MAINTAINING A TECHNICAL DATA RETRIEVAL SYSTEM

56. Technical data is only an effective management tool if it is readily accessible. To be accessible, EMT members must be able to quickly identify what data items are held and where they are located. Data holdings may consist of technical publication manuscripts and reproducibles, engineering drawings, photographs, magnetic tapes, computer disks, microfilm, models and prototypes. Some of this data may be stored on-site, some in Departmental or external repositories (e.g. contractors and suppliers), and some in government archives (e.g. historical documentation). The accessibility of this data depends on an established and maintained data retrieval system within their EMTs.

57. The preferred technical data retrieval system is a computer based Relational Database Management System (RDMS). If electronic methods are not possible, it is recommended that a card index system be established to record all technical data holdings. Each index card is assigned a unique index control number and contains all relevant information pertaining to the data item.

58. Current holdings of technical data (legacy data), that is not already in retrievable electronic form, should be reviewed by the ESM periodically. Based on the retrieval and revision rates of the data, and the remaining economic life of the associated equipment or system, responsible ESMs will determine if it is practical to convert the data into an electronic form.



A-AD-D10-001/AX-000, File Classification Manual, Volume 1, Instructions, Primaries and Index

A-AD-D10-003/AX-000, Information Classification Manual, Volume 3, Numerical File List

A-AD-D11-001/AG-001, Records Scheduling and Disposal Manual

A-LM-505-260/JS-001 (MMI 1260), Sale, Loan and Free Issue of Canadian Forces (CF) Publications

A-LM-505-486/JS-001, Administrative Instructions for the Preparation and Management of Engineering Drawings and Associated Data

A-SJ-100-001/AS-000, Security Orders for DND, Volume 1, General

Divisional Engineering Staff (Speciality Engineering Support)

DPM Secur (Security Policy and Procedures)

DTICS 3

DTICS 4

NDRLS (Archives)

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C-01-000-100/AG-004, Production and Acquisition of Engineering Data

C-01-100-100/AG-006, Specification – Writing, Format and Production of Technical Publications

CFAO 57-13, Restriction on Release of Technical Data to Non-DND Agencies

D-01-300-100/SG-000, Standard for the Specification Preparation – Technical Content

D-01-400-001/SG-000, Standard – Engineering Drawing Practices for Class 1 Drawings and Technical Data List

D-01-400-002/SF-000, Drawings, Engineering and Associated Lists

ENGINEERING DRAWINGS AND ASSOCIATED DATA

DRAWING LEVELS

59. Engineering drawings and their associated data are essential documentation of the design requirements of DND materiel. The quality and complexity of this data will vary with their intended use and the characteristics of the materiel. The three classifications (levels) of engineering drawings coincide with the natural progression (from inception to production) of the design, namely: conceptual and developmental design (Level 1), production prototype and limited production (Level 2), and full production (Level 3).

60. Due to the significant cost associated with the acquisition and management of technical data, EMT members must ensure that they acquire only those engineering drawings and associated data that are necessary to provide an engineering disclosure sufficient to meet the requirement for which the drawing is to be used. For example, a Level 1 drawing will provide sufficient information to evaluate an engineering concept.

TECHNICAL DATA PACKAGE (TDP)

61. The procurement package generated in support of equipment or system procurement contains a variety of information that addresses the administrative, contractual, and technical requirements necessary to support issuing a contract. The technical portion of the procurement package is generally known as the TDP and must contain the approved technical data necessary to provide a description of the item or material to be manufactured or procured. The size and complexity of a TDP depends on the complexity of the procurement. It may comprise a single specification for a simple OTS buy, or a complete set of specifications, standards, engineering drawings, test plans and procedures, etc., in the case of a major development project.

62. TDPs are divided into two categories of documents:

a. Those documents which will be supplied to bidders and contractors for contractual use (e.g. specifications, military standards), sometimes referred to as Issuable Documents; and

b. Documents that contractors and related commercial activities are normally expected to have either on file, obtain from commercial sources, or borrow from reference centres (e.g. commercial standards, engineering handbooks, dictionaries).

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63. The authority to release the TDP is the TA who exercises configuration control over the materiel. ESMs and even EMT Leaders who are designated the TA for equipment or system must select and approve all technical documentation in support of reprovisioning and authorize release of the necessary data.

ACQUIRING ENGINEERING DATA

64. ADM(Mat) Technical Resource Centre can provide EMTs with access to a wide variety of commercial and foreign military engineering data. Within EMTs, ESMs/TAs should liaise and coordinate with PWGSC line managers for advice and guidance regarding the manufacturer’s requirements for TDPs. It must be confirmed that the engineering drawings and associated data held by DND fail to satisfy the requirement before any additional technical data will be acquired. It is also necessary to identify and consult with the responsible DTICS 4 sub-section to establish the range, volume and adequacy of the required engineering drawings. Once this is completed, a full technical description of the data is prepared and forwarded to the applicable SM to initiate procurement.

65. Considerable research may be involved to ensure the data associated with an item actually is valid and current, which may entail a tasking to contract sources (e.g. PMS Contractor, Configuration Management Contractor, and TIES Contractor). All in-house and contractor prepared engineering drawings must be reviewed to verify the scope and accuracy of the engineering and technical content.

66. Commercial and foreign military engineering drawings, vendor catalogues or data that are required for review and evaluation may be obtained through DODISS or GIDEP. A Technical Data Action Notice (TDAN) will be initiated by the ADM(Mat) Technical Resource Centre for EMT/ESM approval when a specification or a standard has been adopted.

REVISING ENGINEERING DRAWINGS AND ASSOCIATED DATA

67. Design integrity can only be preserved through the acquisition and maintenance of a suitable TDP. Engineering drawings and their associated lists are an integral part of the TDP as they provide an explicit representation of the physical characteristics of the equipment or system in terms of materials, components, dimensions, layout, etc. To maintain the validity of the TDP throughout the materiel life cycle, TAs must ensure that all DND approved engineering alterations (i.e. design changes or modifications) are accurately reflected in the applicable engineering drawings and associated lists.

68. DTICS is the custodian for engineering drawings acquired by DND and held by DND. Where the TDM function has been contracted out, TDPs may be held in external repositories such as those of prime contractors, suppliers and OEMs. The contractor in accordance with the terms and conditions of the contract will revise engineering drawings held in these repositories. Contractor initiated revisions to engineering data must not be authorized without prior DND approval of a design change or modification. Once DND has approved the design change or modification, the contractor will prepare the necessary data changes in a Notice Of Revision (NOR) and submit them for DND approval. Revisions are made by erasing, crossing out, or adding information, or by producing a new drawing, whichever is most suitable. The introduction of additional engineering drawings or lists to multi-sheet drawings also constitutes a revision.

69. Revision control is important also from an economical point of view. Contractors providing revision services sometimes need explicit instructions and guidance as to what scope and type of changes should lead to the preparation of large-scale revisions. In many cases, a properly managed system of auxiliary notes and “ink amendments” avoids the necessity for completely new versions, with their commensurate costs of production. This is less of a problem with computerized text editing and drawing systems, but there is still a great deal of paper-based data that is subject to manual revision.

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A-AD-100-100/AG-000, National Defence Publishing Policy and Administrative Procedures

A-LM-505-010/JS-001 (MMI 1010), Material Management Instruction – Official Languages Requirements for Technical Documentation

A-LM-505-486/JS-001 (MMI 1481), Administrative Instructions for the Preparation and Management of Engineering Drawings and Associated Data

C-01-000-100/AG-004, Production and Acquisition of Engineering Data

C-01-000-102/AG-000, National Defence Index of Documentation System

C-01-100-100/AG-005, Acceptance of Commercial and Foreign Government Publications

C-01-100-100/AG-006, Writing, Format and Publication of Technical Publications

CFAO 57-12, Publication Management Policy

D-01-400-002/SF-000, Drawings, Engineering, and Associated Lists

DAOD 5039-4, Translation of Texts and Acquisition of Bilingual Documentation

NDHQ Instruction Materiel Group 01/95, Defence System Technical Data Management

ADM(Mat) Technical Resource Centre

DTICS 3 (Publications)

DTICS 4 (Drawings)

DISPOSAL OF TECHNICAL DOCUMENTATION

INTRODUCTION

70. During the materiel disposal process, all Relevant Technical Data (RTD) holdings (i.e. all data related to the surplus materiel) must be evaluated and any surplus data disposed of. The retention and continued management of RTD that is no longer useful, places an unnecessary burden on the LCMS, and may detract from the quality of the management effort and financial resources directed at other, more vital requirements. The process to dispose of technical documentation is summarized in Figure 10-3.

71. When a defence system or major equipment is to be removed from the CF inventory, Director Disposals, Sales, Artefacts, Loans (DDSAL), upon formal notification by DCDS, will chair a pre-disposal meeting to form a disposal team and develop a disposal plan. All RTD, including all publications, are identified and located. Also, applicable ELDs (where available) are checked as source documents. Any proprietary or other rights are identified, that may affect the sale or use of the data in another application either internal or external to the Department. A list is prepared of all surplus RTD recommended for disposal action and appropriate action is initiated. The disposal of the RTD will be specifically addressed in the disposal plan, and responsible staff will be tasked to implement the RTD disposal. For minor disposal activities, all initiation, planning and coordinating activities rest with the EMTs.

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72. DTICS shall ensure that all record copies (i.e. masters and reproducibles) of technical data destined for disposal are packaged, identified and forwarded to the Public Archives, Records Centre Branch. The length of time that these records are to be retained is determined by ESMs in concert with DTICS and NDRLS staff.

73. The disposal of RTD generally coincides with the disposal of the associated equipment or defence system. EMTs are responsible to ensure that all technical data holdings, including those held by DTICS and/or external repositories, are purged of all technical data items that no longer serve a useful purpose. Once the surplus material has been identified, EMTs can then initiate disposal action through the appropriate agency.

74. When only a portion of the total quantity of equipment is declared surplus, the bulk of the RTD should be retained to support the materiel that is still in service. However, there are instances where some of the RTD (e.g. technical publications) may be rendered surplus due to the closure of maintenance facilities. In such cases, the surplus publications should be disposed of.

INITIATION OF DISPOSAL OF SURPLUS TECHNICAL DATA

75. The disposal of Major Equipment and Defence Systems including any RTD rendered surplus, will be coordinated by DDSAL. Technical data custodians (i.e. DTICS or EMTs) will initiate disposal action on receipt of a CFSS Supply Instruction Advice (SIA) generated by DDSAL. Minor equipment is normally declared surplus to requirements by responsible ESMs. In these cases the ESM will define the surplus RTD and coordinate its disposal in concert with the appropriate technical data custodians.

DISPOSAL ACTION

REVIEW RTD HOLDINGS

IDENTIFY DND REQUIREMENTSDATA

REPOSITORIESAND

CUSTODIANS

DND RETENTION DISPOSE OF ALL

ARCHIVE

CUSTOMERDISPOSALSALE OR RELEASE

TO OTHER AGENCIES

DDSAL / PWGSC

ESM

( No )

( Yes )

(Record Copies)(Surplus)

(Still Required)

Figure 10-3 RTD Disposal Process

76. It is necessary to ensure that all contractors involved in publication management for the RTD are notified. Disposal of material held by contractors will be conducted in accordance with the prescribed contractual procedures. EMTs must also ensure that appropriate action is taken to cancel any outstanding procurement or PMS contracts.

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77. Where materiel is jointly owned or operated by the CF and any other government agency, or foreign government agency, special disposal arrangements may be required.

78. A detailed examination of unclassified technical documentation is recommended to ensure that no classified material, which requires different handling, is included. All unclassified material may be dumped as standard office garbage.



A-AD-D11-001/AG-001, Record Scheduling and Disposal Manual

A-LM-505-851/JS-001 (MMI 1851), Disposal of Obsolete Technical Documentation

A-SJ-100-001/AS-000, Security Order for the Department of National Defence

CFAO 57-13, Restrictions on Release of Technical Data to Non-DND Agencies

ADM(Mat) Technical Resource Centre

DDSAL

DTICS 3 (Publications) and DTICS 4 (Engineering Drawing)

Supply Manager

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PART 11

SUPPLY AND INVENTORY MANAGEMENT

GENERAL

1. Supply and inventory management is an essential component of the overall MA&S system and a major activity within EMTs. Technical and supply staffs collectively are responsible for ensuring that efficient supply management is achieved. This includes the appropriate identification, resource management, distribution, storage, handling, marking, transportation, stock level reporting, and disposal of materiel. Within the EMT, supply and inventory management is mainly carried out by SMs in close coordination with ESMs.

2. The EMT Leader is responsible for ensuring that internal EMT processes facilitate and support efficient supply management. The following activities are covered under supply and inventory management:

a. New item advice;

b. CFSS MDB;

c. Automated reprovisioning;

d. R & O;

e. Stock control;

f. Loan of materiel;

g. Management of special materiel; and

h. Support to operations.

NEW ITEM ADVICE

GENERAL

3. The need for new materiel to be added to the CF catalogue is generally the result of:

a. The introduction of new weapon systems;

b. The acquisition of new items for life cycle support;

c. Changing materiel authorizations;

d. Supersession/replacement of materiel because of modification, reconfiguration or manufacturing processes; or,

e. Changing roles assigned to CF units.

4. Because of new or changing operational roles, the obsolescence of existing materiel, or the implementation of a new support capability, new items of materiel are continuously being added to the CFSS MDB and old, redundant items are removed.

5. The actual cataloguing function is performed by DTICS 3. Completed cataloguing actions cause new items to be listed in the Canadian Government Catalogue System. This can be searched electronically from the DTICS 3 intranet web site.

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6. New items of materiel entering the CF must be uniquely and appropriately identified on the CFSS MDB by NSN (N-type number), manufacturer’s reference stock number (M-type number) or locally assigned stock number (L-type number).

7. In the case of MCPs, the identification request for new items is usually originated by the PMO. Typically, PMOs have experienced staff familiar with ESM and SM functions.

8. The need for new items may also arise when existing items of materiel are no longer available and suppliers offer in-lieu items. In such instances SMs may become aware of the need for new item advice and contact the TA to ensure that the in-lieu item is suitable for the intended purpose.

9. Requirements for new in-service item identification may also originate internally within EMTs, generally by ESMs. For example, the need may arise to procure new items such as tools or test equipment, modification kits or other items for equipment life cycle support. When this occurs, ESMs contact DTICS 3 and arrange for IP, which will update the CFSS MDB. If initial provisioning is not feasible, the EMT shall complete the Cataloguing Request Form. When completed, the form is forwarded to DTICS 6 for updating of the CFSS MDB.

DEFINING CATALOGUING REQUIREMENTS

10. When the IP process is not used to catalogue new equipment, the Cataloguing Request Form shall be used and forwarded through the appropriate SM to DTICS. TAs are responsible for providing all applicable technical data to ensure that appropriate supply management actions take place.

11. When SMs are advised by other than ESMs that new items are being introduced, they should consult with the appropriate ESM to ensure the proposed items are suitable for the intended purpose.

12. Depots/Wings/Ships/Bases/Stations/Units may submit a Cataloguing Advice or Confirmation Request (CACR) or message when one of the following conditions is encountered:

a. Acceptable substitutes are received off procurement instruments and they cannot be identified according to an existing stock number;

b. Unidentified materiel found in stock requires stock number confirmation; or

c. Stock number assignment.

13. When cataloguing errors or omissions are found, or when an Equipment Configuration Code (ECC) is changed, a Cataloguing Request Form is initiated and processed through DTICS.

14. Cataloguing requests for items that are not sufficiently identified and described cannot be completed. When requests are made, ensure all available technical data, drawings, brochures, catalogues, etc. are forwarded. This allows DTICS 6 to fully complete the identification of the item. It should be considered whether the ESL, ELD and TDP should be updated.

ESTABLISHING THE SHELF LIFE AND SHELF LIFE CODE (SLC)

15. All materiel that deteriorates due to ageing shall be assigned a shelf life when operational capabilities or safety could otherwise be affected, or the materiel has a known deterioration rate that would render the use or installation of the materiel uneconomical or impracticable. The shelf life of materiel is defined as the maximum length of time an item can be kept under specified environmental conditions of temperature, humidity, light, etc. without deterioration. It includes all periods of time spent at the manufacturer or supplier’s facility, in CF depots, in transit, and in local storage prior to installation and use. Materiel assigned a shelf life receives an appropriate SLC, which is recorded against the materiel in the CFSS MDB.

16. EMT members are responsible for:

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a. Assigning SLCs after consultation with the SM, review of applicable materiel standards, specifications

and technical orders (see Figure 11-1);

b. The periodic review of SLC materiel to ensure shelf life listings are current and within the limitations of operational and safety considerations; and

c. The elimination or extension of shelf life as much as practicable.

Figure 11-1 Establishing Shelf Life

WARRANTY, SERVICE AND SHELF LIFE MANAGEMENT

17. Many types of military materiel possess constraints in the form of warranty limitations, shelf life and service life. Procurement and usage plans that do not incorporate these constraints to a practicable extent generate unnecessary support costs, perhaps endanger personnel and equipment, and compromise mission success. The EMT plays a key role in such practices as:

a. Optimizing customer returns on warranty provisions by ensuring warranted equipment enters service and/or undergoes testing within the warranty period, rather than let the warranty expire on the shelf;

b. Ensuring service life limitations are not exceeded; and

c. Minimising the amount of materiel whose shelf life limitations are exceeded prior to usage.

18. Equipment may include parts made of elastomers or other materials that typically have a relatively short shelf life. Note that the parts with the shortest shelf life determine the shelf life of the equipment.

19. It is essential that materiel be assigned the longest period of shelf life possible. In this regard, strong consideration must be given to results achieved through testing of shelf life by the OEM, US Department of Defense (DoD), allied countries and engineering establishments.

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20. Shelf life affects the manner of procurement (i.e. short shelf life means more frequent buys for smaller quantities). Lifetime buys should not be made on shelf-life-limited items.

21. The Internet can be used to locate additional information regarding shelf life. Two available reference sites are:

a. Department of Defence Index of Specifications and Standards (DODISS). Supporting DODISS technical information may be obtained from DTICS; and

b. Government Industry Data Exchange Program (GIDEP). The Canadian Representative for GIDEP is the DCPS 5-5. An introduction to the GIDEP program is available from the DGLEPM intranet site.

COMPONENT SERVICE LIFE

22. There are many reasons for imposing a service life on a component and several different methods for calculating its value. In some cases, a service life is defined as an absolute value, at which point the item has to be removed from service, never to return. In other cases, it marks a point at which an item has to be inspected and/or reprocessed, after which it may be returned to service.

23. The assigned component service life helps predict the need for the restocking actions of consumable components. For repairable items, it helps to forecast the requirements for repair and overhaul actions.

24. Some of the reasons for imposing a service life are:

a. Fatigue Life. Many components are subject to recurrent low amplitude stresses, the cumulative effect of which leads to cracking and fracture. Damage accumulates with usage, so a fixed life is imposed on the component to limit the probability of the component’s in-service failure.

b. Cost Avoidance. The failure of a low-cost component could produce a significant amount of damage if the component were allowed to fail. As a result, it becomes cost effective to replace the component regularly before it has the chance to fail, thereby avoiding the major repair.

c. Condition Evaluation. The fitness for further service of some components can be determined by periodic inspection and testing.

d. Calibration and Alignment. Usage often causes components to fall out of calibration and alignment.

25. Ways of measuring component usage and basing limits on service lives include:

a. Installed time, as measured by the calendar;

b. Running time, as established by manual “on-off” tracking or installed clocks;

c. Operating time and temperature combinations; and

d. Specific operating cycles (e.g. total revolutions, number of pressurizations).

26. As with shelf life, both the supply and technical management functions must collectively ensure that service life limits are imposed and respected, and that appropriate actions are included in the applicable supply and maintenance plans, tasks, and activities. It is particularly important to identify the reason for an in-service life and the consequences of failure for the item. Many cases arise in which an extension to service may alleviate a situation. In some cases, a limited and controlled extension under certain terms and conditions may be acceptable. In other cases the probabilities and consequences of failure are unacceptably high.

27. Component service life should be reviewed at specific intervals. Through engineering analysis, the analysis of technical failure reports, maintenance management information system data, and other statistical media, the component life of items shall be extended when feasible.

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ESTABLISHING STORAGE CHARACTERISTICS HANDLING CODES (SCHCs)

28. Any materiel in the CFSS that requires special storage (i.e. having a characteristic or property that is affected by storage) must be assigned an SCHC. The SCHC is a single alpha character code. The following are examples of SCHCs:

a. “A” ammunition, explosives and pyrotechnics;

b. “D” dangerous goods – see A-LM-187-001/JS-004 (CFP 187[4]), Hazardous Materiel Storage and Handling Guide; and

c. “K” classified matter.

29. For a full listing refer to A-LM-501-001/AG-003.

30. Within EMTs, ESMs provide technical support to SM or Initial Provisioning Conference (IPC) Teams in the assignment of the appropriate SCHCs.

31. Although most CF supply personnel are fully conversant with the standard specifications and procedures governing the storage, packaging, handling and transportation of materiel, they may not be familiar with the special requirements associated with any specific item. LCMMs are therefore responsible for ensuring that any special requirements peculiar to the equipment and materiel under their control are adequately defined and that the appropriate supply personnel are properly notified.



A-LM-007-014/AG-001, CF Supply Manual

A-LM-137-COM/LX-001, Canadian Government Catalogue of Materiel and Transaction History File (CGCM)

A-LM-187-001/JS-001, Packaging and Preservation, General Procedures, Volume 1

A-LM-187-002/JS-001, Packaging and Preservation, Detailed Procedures, Volume 2

A-LM-501-001/AG-003, CFSS Code Control Guide

A-LM-505-458/JS-001 (MMI 1458), Materiel Management Instruction – Lifing of Equipment and Material

A-LM-505-603/JS-001 (MMI 1603), Assignment of Codes in CFSS

A-LM-505-621/JS-001 (MMI 1621), New Item Advice, Stock Number Conversion and Sentencing Actions, Catalogue Advice or Confirmation Request (CACR)

A-LM-505-642/JS-001 (MMI 1642), Storage Characteristics Handling Codes (SCHC) and Shelf Life Code (SLC) Assignment

DCPS 5-7 (GIDEP)

DMASP 5-6

DMMD 2 (advice on packaging, SCHC, base and depot instructions)

DMMD 2-3 (SLC and Handling of Codes)

DMMD 3 (Policy Reprovisioning)

DTICS (DODISS)

DTICS 3

ESMs

SMs

A-LP-005-000/AG-008

11-6



C-02-005-013/AM-000, Policy on Shelf Life and Storage of Materiel

D-01-100-211/SF-000, Preservation, Storage and Handling Instructions

D-LM-008-011/SF-001, Preparation and Use of Packaging Requirements


CFSS MASTER DATABASE (CFSS MDB)

INTRODUCTION

32. The CFSS MDB is the CF corporate record that contains item identification information, applicable control information and stock holdings of various levels of materiel owned by the CF. The CFSS MDB consists of several segments, each containing a specific type of data including:

a. Basic Item Data such as Accountability Code, Quality Assurance (QA) code, Repair Code, etc.

b. Packaging Requirements such as shelf life, quantity bulk pack, method of cleaning, wrapping materials, etc.

c. Miscellaneous Item Data such as NATO stock class, ammunition interchangeability, etc.

d. Reprovisioning Data such as reorder level, system warning level, repair level, etc.

e. Standing Offer Contract Data including Contract Number and Contract Line Item Number.

33. Within EMTs, SMs are responsible for the input, update and maintenance of the information stored on the CFSS MDB. To assist them, computer-generated reports are produced at periodic intervals or on demand for the action of SMs. ESMs are responsible for assisting SMs in the technical review and analysis of these reports, and to provide information that aid in maintaining the integrity of the database.

UPDATING THE CFSS MDB

34. The need for an MDB update could result from a number of events including:

a. Acquisition of new materiel;

b. Notification from suppliers about part number changes, quantities per pack, pricing etc.;

c. Additional useful technical information;

d. Failure and deterioration reports from users;

e. Letting of Repair and Overhaul (R & O) contracts and the results of such contracts; or

f. Identification of allowable substitute items.

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35. Updates are initiated by preparing a memorandum to the appropriate SM detailing the full item identification, the data element(s) to be changed or added and the reason for the change. The CFSS MDB is the official repository of supply management data. It contains information that is essential to the management of the DND inventory. The need for currency, completeness and accuracy of the data cannot be over-emphasised.

REVIEWING/UPDATING INFORMATION ON THE CFSS MDB

36. The CFSS automated information retrieval process, National Materiel Information Management System (NMIMS), has reduced the need for SMs to maintain Master Item Control cards. Upon requests from the SMs, the management information is reviewed and data elements such as the following are validated:

a. Item description and stock number;

b. Repair code;

c. ECCs, EACs, scales, etc.;

d. Quantity in use;

e. Manufacturer’s part number; and

f. Source of supply.

37. LCMMs are responsible for assisting SMs in maintaining current, complete and accurate information on the CFSS MDB.

MONITORING/UPDATING COMPONENT LIFE

38. All component-life assigned items are subject to a cyclic review by the responsible ESM. The intent of this periodic review process is to ascertain if the component life can be extended to maximum economical use without jeopardising safety or operational effectiveness. Any decision to extend the component life of an item must be undertaken with caution. Any possible costs saved by extending the life of an item must be carefully weighed against the consequence of its failure during operation as shown in Figure 11-1.




A-LM-505-622/JS-001 (MMI 1622), Updating Management Data Segments of the CFSS Master Database

A-LM-505-625/JS-001 (MMI 1625), CFSS Databases

LCMM Activities Handbook

DMMD 3 (Policy CFSS MDB)

SMs

ESMs

DMASP 5-6 (ILS)

A-LP-005-000/AG-008

11-8

AUTOMATED REPROVISIONING

GENERAL

39. Reprovisioning Process (RP) is the process of acquiring materiel to restock the CF inventory to prescribed levels. The CFSS uses an automated Reprovisioning Process for this purpose. This process operates on information continuously collected by the CFSS such as remaining inventory levels, usage data and Economic Order Quantities (EOQ) principles. Whereas the SM community is responsible for monitoring the sufficiency of materiel to satisfy forecast demand, forecasting the demand rate is a shared responsibility between SMs and ESMs.

40. Within the EMT, ESMs have a vested interest and responsibility to ensure that their materiel is available at the appropriate levels. To this end, ESMs must provide technical support to SMs. Although RP does not directly involve ESMs, the automated RP process will generate exception reports that may (where applicable) be brought to their attention. Generally, ESMs are advised by SMs of actual or potential problems.

TECHNICAL SUPPORT TO THE REPROVISIONING PROCESS

41. The CFSS RP Program automatically monitors the consumption of individual types of materiel to determine if the actual consumption rate reasonably matches the forecast rate. Excessive stock levels may create unnecessary expense and shortages may create operational problems. Both situations should be avoided. If there are sufficient differences between the forecast and the actual consumption rate, the CFSS automatically produces a report alerting the appropriate SMs to the condition. The ESM and the SM can then seek to understand the discrepancy and correct the problem.

42. It is recommended that ESMs monitor consumption rates of essential material through the CFSS reports, and from reports from the applicable environmental MMIS. For reasons such as deployment, modifications, change in deployment or other occurrences, it may happen that over a limited time, demands of certain materiel exceed the available stocks. Therefore whenever possible, anticipate such occurrences, and, together with the SMs, ensure that sufficient materiel is available. Spares reprovisioning for equipment/systems that are becoming obsolete should be monitored and quantities reduced as applicable.

REVIEWING/UPDATING PROCUREMENT INSTRUMENTS (PIs) AND MATERIEL REQUIREMENTS LISTINGS (MRLs)

43. The MRL is a computer-generated exception report and an integral part of the CFSS RP process. The CFSS compares current inventory levels with pre-established reorder levels to determine any shortfalls, and flags the SM to start procurement action. MRLs are a “shopping list.”

44. As the technical authority (TA) for the materiel, ESMs are responsible for validating the reprovisioning data contained in a draft Procurement Instrument (PI) prior to the initiation of procurement. An ESM may never see an MRL.

SEGREGATION OF MIXED STOCKS

45. A mixed-stock condition exists when different items of materiel are accounted for under a single NSN. Mixed stock conditions are generally noted at the user end of the supply system. Notice is usually forwarded to DTICS 3 by a CACR, message or letter. Addressing a mixed-stock situation is primarily a supply management function; however, input from ESMs may be required to resolve the situation. In the event a mixed stock condition has the potential to cause injury or death to personnel, or damage or loss of equipment, urgent action must be taken to advise all parties involved. Action must be taken by the ESM but should be coordinated with supply management.

EXCESS STOCK MANAGEMENT

46. System excess inventory is calculated automatically in conjunction with the scheduled Reprovisioning Reviews (RR) and reviews at the Parent Quarter (PQ) of NATO classes. Three different summary reports can be produced:

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a. Annual review – items established on the MDB for more than 11 years;

b. Bi-annual review – items coded as “Lifetime Buy”; and

c. New items review – first report following 10 years’ minimum period.

47. These reports provide the data and statistics required by management to critically assess the need to retain all, or any portion of, the system assets above the excess levels or down to the Maximum Stock Level (MSL). Excess stock reports submitted by the responsible SM are often reviewed by the applicable ESM. Retention or disposal of the excess stock and the adjustment of the system stock levels is based on:

a. Past usage rates;

b. Commercial availability;

c. Item cost;

d. Risk of non-availability;

e. Forecast usage rate;

f. Specialized storage characteristics;

g. Storage costs; and

h. Estimated expiry date of equipment.

48. Because items do not appear on the System Excess Summary Report (SESR) until after 10 years of recorded activity, items that are dormant and those with prohibitive assets, which in some cases will last to infinity, should be given a critical review and be seriously considered for disposal.

49. If disposal action is to be taken, the Disposal Certificate provided by the SM is signed and any special instructions for disposal are included in the package sent to DDSAL.



A-LM-505-312/JS-001 (MMI 1312), Procurement Instruments (PI), Preparation, Distribution, Follow-up

A-LM-505-355/JS-001 (MMI 1355), Segregation of Mixed Stock

A-LM-505-617/JS-001 (MMI 1617), Materiel Management Instructions Reprovisioning

A-LM-505-641/JS-001 (MMI 1641), Materiel Requirements Listing (MRL) and System Manual Computations Reports (SMCR)


DDSAL (Disposal Policy)

DMASP 4 (Policy – Procurement)

DMMD 3-3-2 (Policy)

DTICS 3 (IP Policy)

ESMs

SMs

A-LP-005-000/AG-008

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REPAIR AND OVERHAUL

50. Materiel held by the CF/DND must be maintained in a serviceable state to ensure that it is available to meet operational demands. While the responsibility for first-level and second-level repairs is vested within operating units and bases, third-level repairs (those repairs beyond the capabilities of units and bases) are administered by the EMTs under an R & O program. The following distinction is made between repair and overhaul:

a. Repair. The maintenance of an item of equipment in order to return it to a serviceable condition.

b. Overhaul. The complete restoration of an item of equipment entailing replacement of both worn and damaged parts or parts whose service life has expired.

51. In general, repair normally involves the correction of specific defects. Overhaul is normally carried out after the expiry of the service life. Repair and modification kits containing items subject to shelf-life control shall be assigned a shelf-life expiry date equal to the earliest expiry date of a shelf-life-assigned component contained therein. These items should also be reviewed periodically and, where appropriate, extend the shelf life.

52. R & O services are all those activities performed at DND in-house facilities, contractors’ facilities or by Mobile Repair Parties (MRPs) to diagnose, inspect, modify, repair and overhaul, and test unserviceable assemblies, equipment, items and systems. R & O services include engineering services, publication and software maintenance, structural life integrity programs, configuration management and spares support.



A-LM-184-001/JS-001, Special Instructions – Repair and Overhaul Contractors


C-02-005-013/AM-000, Shelf Life and Storage of Materiel

D-02-002-002/SG-000, General Requirements for Repair, Overhaul and Restoration of Electronic and Avionics Equipment by Civilian Contractors

D-02-002-003/SG-000, General Requirements for Repair and Overhaul of Ground Radar, Navigation Aids and Ancillary Equipment by Civilian Contractors


MMI 1500, Repair and Overhaul (R & O) Component Parts and Accessories

MMI 1501, Repair and Overhaul (R & O) Airframes and Aero-engines

DMASP 5-6 (Policy – Lifing of Equipment)

DMMD 3-2 (Policy – SLC & SCHC)

DMMD 3-3 (Policy – Assignment of Codes)

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STOCK CONTROL

INTRODUCTION

53. Instances may occur in which EMT staff (e.g. ESMs or SMs) find it necessary to place a restriction on the availability of materiel. Restrictions may have to be imposed for:

a. Delayed deliveries from contracts to supply. The reasons for the delay may be numerous, but are typically beyond the control of DND.

b. Diversion of available stock in support of an unforeseen high-priority event. An example might be the rapid deployment of a peace-keeping force or the threat of war.

c. A sudden and unexpected increase in consumption because of failures further aggravated by a necessary quarantine action.

d. Necessary materiel to support an upcoming test, trial or operational commitment while there are insufficient stocks to maintain the usual consumption rates.

54. The usual reason is that the available stock has reached a critically low level and it is deemed necessary to assess the merit of each demand.

ESTABLISHMENT, CONTROL AND REVIEW OF MATERIEL RESERVATIONS

55. The materiel reservation process is designed to record, maintain and release requirements of materiel to meet projected needs. It is intended to protect assets and ensure that future plans or projects are not jeopardised as a result of materiel shortages. Demand reservations are the individual transactions that reserve items of supply that are required for a particular established project.

STOCK QUARANTINE ACTION

56. EMTs are responsible for supporting the CFSS by initiating, monitoring and controlling the quarantine of all materiel under their control. All materiel stocked in the CFSS must be assigned a Stock Holding Code (SHC) to indicate its serviceability or the purpose for which it is held. SHC 20 (serviceable materiel suspended from use – awaiting technical or safety evaluations) and SHC 50 (repairable materiel suspended from repair- awaiting technical or safety evaluations) may be assigned to assets whose normal use, repair or reassignment to other SHC categories has been suspended by the TA for reasons of safety, reliability or because their precise identification or condition are in question. Items assigned these codes are said to be under quarantine.

57. Only the custodian of an item may originate a transaction to change the SHC and the custodian is also responsible for ensuring that follow-up action is taken. Information regarding custodians of materiel held in SHC 20 or 50 is available to the NICP through the itemized inquiry reply process.

CONTROLLING THE REMOVAL OF ITEMS FROM MAJOR EQUIPMENT IN STORAGE

58. Major equipment is defined as materiel that fulfils a prime function and that does not lose its identity or become an integral part of other equipment or installation (e.g. ships, tanks and aircraft). Major equipment is categorised as:

a. Equipment in stored reserve – held against attrition, operational reserve, etc.; and

b. Equipment in storage awaiting disposal.

59. Within EMTs, equipment in storage falls under the purview of ESMs. The level and types of support extended to such equipment varies depending on the category.

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60. ESMs and SMs may consider equipment in storage as a potential source of items of hardware that are in short supply. Cannibalization is the process of removing items without plans to replace them, whereas robbing is the temporary removal of items. The instructions for removal should reflect whether the removal is a cannibalization or a robbing action. Use of such hardware requires its removal from the equipment, and such removal activity must be strictly controlled. Equipment storage and the removal of components in support of in-use equipment are supply management activities. ESMs shall exercise configuration control for equipment and systems for which they have system responsibility and, as such, shall authorize or deny any requests for removal.

61. While within EMTs, ESMs are the authorities for configuration control of their equipment, the robbing process at a warehouse or other remote site is beyond an ESM’s control. ESMs may issue a rob request against a specific serial-numbered equipment, but without being there, they cannot ensure that the log books etc. are being updated. To ensure compliance, ESMs should request that the QA Representative/Technical Representative file a report on actions taken.

CONTROL OF MATERIEL IN CRITICAL SUPPLY

62. Within EMTs, SMs must occasionally control the issue of items of materiel when the materiel is in short supply. The CFSS’ ability to meet current and projected demand cannot be automatically satisfied. When items of materiel are categorised as being in short supply, decisions to issue are based on priority. Exercising control over items in critical supply is a supply management function. However, input from LCMMs may be required to assist in determining priorities for issues. Demands coded, “OX” or “01” will continue to be satisfied automatically without the intervention of SMs as long as stock is available.

63. Effective planning and monitoring reduces shortages to a minimum. Situations must be monitored closely, and any measures taken must be rescinded as soon as the stock situation permits.



A-LM-007-014/AG-001, Canadian Forces Supply Manual

A-LM-505-021/JS-001 (MMI 1021), Control of Material in Critical Supply

A-LM-505-258/JS-001 (MMI 1258), Removal of Items from Major Equipment in Storage

A-LM-505-618/JS-001 (MMI 1618), CFSS Projects and Demand Reservations

A-LM-505-638/JS-001 (MMI 1638), Special Materiel Controls and Reports of Incomplete Sets

C-02-005-009/AM-000, Inspection and Conditioning of Materiel Returned to and Held in the Supply System

C-02-010-005/AM-000, Removal of Items from Major Equipment in Storage Robbing and Cannibalizing

LCMM Activities Handbook


Divisional Engineering Staffs

DMASP 5-6 (Policy)

DMMD 3 (Policy – Reservations)

ESMs

SMs

A-LP-005-000/AG-008

11-13

LOAN OF MATERIEL

64. A loan is the authorized issue of materiel outside of DND for a specified period of time and subject to agreed conditions. The different types of outward loans are:

a. To contractors, who must have a current contract with DND;

b. To Canadian manufacturers to assist with foreign sales;

c. To a foreign government for test and evaluation; and

d. To other organisations for relief purposes, community purposes or for purposes which benefit DND.

65. The sponsor is responsible for obtaining approval for the loan while DDSAL prepares the documentation and administers the loan. The process for arranging materiel loans is contained in MMI 1257. (See Figure 11-2 for an overview of the loan process.)

Figure 11-2 Overview of the Loan Process

66. DDSAL can provide specific assistance pertaining to specific types of loans such as Contractors, Offshore Sales, Civil Emergencies, Community Organisations, Other Government Departments (OGDs), and Foreign Governments.

67. Inward loans occur when DND borrows from outside DND. The sponsor must obtain the necessary approval, initiate a request to DDSAL identifying who, what, where, when and for how long the item is to be on loan. DDSAL then prepares the appropriate documentation and administers the loan. Inward loans have a value limit of $50 000 and a time limit of one (1) year. These loans are usually for T&E reasons, and are at no cost to DND. However, the borrower can pay incidental expenses (packaging, shipping, etc.).

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68. SPT and STE is materiel required only for production purposes. This materiel is not catalogued or Brought On Charge (BOC). This materiel is controlled specifically by the PWGSC Assets Manager, and is lent under a statutory declaration, and is not controlled under any type of loan agreement. The ESM, in concert with the SM and the operational authority, decides whether to keep SPT/STE for future production or to dispose of it entirely.

69. If the loan is a contractual requirement, the originator should raise the requirement with PWGSC, who, in turn, raises a loan agreement and actions it to DDSAL. When DDSAL receives the request, they determine if the loan can be approved (by discussions with applicable NDHQ personnel) then approve or reject the request on the basis of that information. Should the loan request not be approved, DDSAL notifies the applicant of the reasons for rejection.

70. Sometimes DND personnel and/or contractors have a tendency to misinterpret some terminology that is used frequently and freely within normal conversations. The following definitions are intended to provide clarification and distinction:

a. Government Furnished Equipment (GFE). Materiel loaned, including SPT and STE, to contractors and required for production.

b. Government Supplied Materiel (GSM). Materiel supplied to contractors for incorporation into the end item/product (the materiel changes or loses its identity and is not returned to DND in the form it was issued).

c. SPT. Materiel required only for production purposes. These can be identified as jigs, forms, patterns, etc. (Materiel is not catalogued or BOC).

d. STE. Materiel that is required only for production but is engineered, designed or modified to meet test requirements. STE does not include standard test equipment issues from stock. Materiel is not catalogued or BOC.



A-LM-505-257/JS-001 (MMI 1257), Loan Procedures

A-LM-505-400/JS-001 (MMI 1400), Management of Special Production Tooling and Special Test Equipment

DDSAL

DSRO 4

MANAGEMENT OF SPECIAL MATERIEL

INTRODUCTION

71. Of special significance for ESMs are the requirements that are imposed by certain components and parts. Some require special handling for the safety of personnel, the environment, or the materiel itself. Within EMTs, equipment managers must be aware of these special materials and must ensure that relevant data and information is properly disseminated.

MANAGEMENT OF PIEZOELECTRIC DEVICES

72. It is a long established DND policy to impose rigid screening controls on the crystal supply process as a safeguard against frequency infringement. It is impractical to maintain depot stocks of all possible crystal frequency combinations since the total inventory would exceed one million line items. Therefore, close attention must be focussed on a dynamic system of frequency reassignments among military users to ensure an effective response to crystal requests.

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73. Frequencies are the common denominator in communication networks. As a result, the state of technology, the character and magnitude of the operational requirements, and the natural limitations of propagation regulate the supply. Therefore, a constant effort must be made by EMTs having specialist responsibility for equipment or systems requiring frequency management to ensure the best possible use of piezoelectric devices necessary to achieve the objective.



A-LM-505-057/JS-001 (MMI 1057), Management of Piezoelectric Crystals

DCPS 5-5

DTSES 5 (Spectrum Management)

Other Specialist ESMs

MANAGEMENT OF ELECTROSTATIC DISCHARGE (ESD) SENSITIVE ELECTRICAL/ELECTRONIC PARTS

74. Certain types of electrical and electronic parts are particularly sensitive to the effects of electrostatic discharge. These devices are readily damaged or destroyed by the static electricity that is generated or stored on the surfaces of most common materials such as plastics, metals, textiles, and human skin. In order to minimize the needless destruction of expensive and, at times, critical inventory, it is Materiel Group policy that all practical precautions shall be taken to avoid ESD damage to electrical or electronic parts installed in, or intended for installation in, DND equipment. EMTs responsible for ESD-sensitive parts are responsible for ensuring that all ESD-sensitive electrical and electronic parts, assemblies and equipment are handled in accordance with the guidelines outlined in A-LM-505-022/JS-001 and detailed in CFTO C-06-006-005/VB-000.

75. Manufacturers of the main equipment should be the primary source of information about the presence of ESD devices in the system or equipment.



A-LM-505-022/JS-001 (MMI 1022), Management of Electrostatic Discharge Sensitive Electrical and Electronic Parts

C-06-006-005/VB-000 (DOD-HDBK-263), Electrostatic Discharge Control Handbook for Protection of Electrical and Electronic Parts, Assemblies and Equipment (excluding electrically initiated explosive devices)

D-LM-008-035/SF-001, Specification for Electrostatic Discharge Protective Packaging – Electronic Parts Assemblies and Equipment

MIL-STD-19500, Semiconductor Devices, General Specifications

MIL-STD-883, Test Methods and Procedures for Microelectronics

MMI 1013, Management of Programmed and Programmable Microcircuits

DCPS 5-5 (Policy)

ESMs

SMs

A-LP-005-000/AG-008

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RESPONSIBILITIES FOR PETROLEUM PRODUCTS

76. Many systems and equipment rely on Petroleum, Oils and Lubricants (POL) products for operation and maintenance.

77. The responsibilities for the overall establishment of specifications, procedures, instructions, storage facilities and transportation of POL products throughout the CF are held by various organisations within NDHQ and commands. The provision, distribution and general management of common POL products is a supply responsibility. However, applicable EMTs must ensure that appropriate instructions and facilities are specified and made available to the users.

78. The major consideration in the use of POL products is safety. Aspects of safety that go beyond the operation, care and maintenance of the equipment itself include interoperability and substitution for other items.



A-LM-188-001/JS-001, Supply Manual for POL/Fuel Handling

C-82-005-001/AM-001, Allowable Deterioration Limits Canadian Forces Fuels Lubricants and Allied Products C-82-005-001/AM-003, Minimum Quality Surveillance for Petroleum Products

DFSCEPM 5-4

Lead ESM

SUPPORT TO OPERATIONS

GENERAL

79. The NDHQ Joint Staff (J Staff) has been established as the principal coordination mechanism to focus, and accelerate NDHQ staff activities in the planning, execution and sustainment of operations. See Figure 11-3 for an overview of this organization.

80. During a CF operation, J4 Mat, on behalf of the CDS, is responsible for the following:

a. Determining the level of logistics support required;

b. Acquiring readily available resource shortfalls from civilian industry;

c. Arranging for and activating agreements for host-nation and bilateral support;

d. Activating strategic Lines of Communication (LOC); and

e. Deploying personnel and materiel to the area of operations.

81. As part of the J Staff, J4 Mat coordinates the provision of logistics support to CF operations through J4 Log. It provides the focal point for the materiel and operational logistics support of Canada’s current and projected defence commitments. Major areas of responsibility include:

a. Coordination of service support to operations, both domestic and international;

b. Maintenance and operation of the National Defence Logistics Coordination Centre (NDLCC);

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Figure 11-3 NDHQ J Staff Organization

c. Development and maintenance of host nation support and mutual logistics agreements to support contingency operations and training; and

d. Development of operational-level logistics capabilities and provision of functional direction to 3 Canadian Support Group (3 CSG), Montreal.

CONCEPT OF OPERATIONAL SUPPORT

82. The support provided to deployed operations is tailored to the particular theatre of operations. It is dependant on the size, composition and role of the Task Force (TF), the geographical disposition of the TF within the theatre of operations, the tactical situation, applicable LOC, and the type and intended duration of the operation. The nature of deployed operations presents particular challenges regarding materiel.

83. Logistics support to deployed operations is provided by support staff integral to the operation, agencies in Canada and NDHQ functional and J Staff. The overriding task for this support structure is to ensure that appropriate levels of materiel are provided to a theatre of operation in which a CF TF is deployed. In most cases, the provision of materiel support is coordinated by J4 Log, except strategic movement and finance support, which are coordinated by J4 Movement (J4 Mov) and J8 Finance Coordination (J8 Fin Coord) respectively.

84. Particular support guidance and direction for a specific operation, which are not addressed in the references or in existing CF publications and directives, is provided in the applicable operation-related Administration Order. Any situation not covered in the foregoing is to be referred to J4 Log for resolution. The sources of logistics administration directives for all international operations are (in order of priority):

a. Administration Annex of the Operations Order;

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b. DCDS Direction for International Operations; and

c. Other CF directives and instructions.

85. J4 Log, on behalf of the DCDS, is the designated policy coordinator for logistics support and 3 CSG is the primary technical liaison agency for materiel processing support. Direct technical communication between the TF support staff and their counterparts in related functional directorates within NDHQ, or between the deployed TF and the parent Force Generator authorities, is a necessary component of national support, and its use is encouraged.

86. The implication of planned operations on equipment management varies greatly depending on the nature and timing of the operation. These may affect all aspects of EMT activities, including major modifications programs to upgrade equipment capabilities. It is important for EMT Leaders to maintain an overview of all current and planned CF operations and anticipate potential implications to their assigned fleets/equipment.



B-GG-005-004/AF-013, Logistics Support to CF Operations

DCDS Direction for International Operations (DDIO) 2/2001


NDHQ Instruction ADM(Mat) 1/02, Support to Operations

NDHQ Instruction ADM(Mat) 2/02, Operation of the Mat Group Operations Centre

3 CSG

J4 Log

J4 Mov

J8 Fin Coord

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PART 12

DISPOSAL MANAGEMENT

OVERVIEW

1. Disposal represents the final stage in the equipment’s life cycle. The aim of this part is to assist EMT members with the identification and disposal of CF materiel, including equipment support materiel such as specialized tools, test equipment, spares and documentation. Materiel should be considered for disposal when maintenance or repair costs become uneconomical, or when the value derived from the asset’s use and its disposal is optimal. Disposal occurs during the in-service phase for individual components and subassemblies when the item in non-repairable for technical or financial reasons and needs to be destroyed; or, when an excess stock situation exists. Since the physical storage of materiel represents a significant cost to DND, materiel must be proactively disposed of when it is not in use or no longer needed. If there might be a future use for the asset, the storage costs must be justified through a business case.

2. Government policy on the disposal of assets is stated in the Treasury Board Secretariat’s (TBS) policy paper “Disposal of Surplus Moveable Crown Assets”, which is available from the TBS Internet site. This policy states that the disposal of surplus moveable assets provides the best overall return for the Government of Canada. Those responsible for the disposal of crown assets must ensure that:

a. The highest net value is obtained through disposal;

b. There is an open opportunity for Canadians to participate in the disposal;

c. The disposal process is characterized by prudence, probity and integrity;

d. The health and safety of persons and the environment are protected; and

e. Heritage items are treated appropriately.

3. Wherever feasible and cost-effective, surplus crown assets are to be sold to the general public. Sales are to be conducted under contracts and standing offers put in place by PWGSC. The proceeds from the sale of surplus DND materiel are returned to DND thereby providing an additional source of funds for equipment and other programs. DDSAL is responsible for the coordination of all disposal-related activities, including:

a. Chairing disposal meetings;

b. Providing status reports;

c. Writing Disposal Plans (except Navy);

d. Exploring alternative applications;

e. Considering NATO allies and military assistance; and

f. Responding to outside agencies and the general public.

4. The DND process model for the disposal of assets is described in Figure 12-1.

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Figure 12-1 Disposal Processes

5. For the purpose of disposal, DND assets are divided into two broad categories: major equipment (i.e. ships, aircraft, tanks and other high-value equipment); and, minor equipment that covers all other materiel. For major equipment, EMTs/DCDS staff must obtain Command/VCDS approval for the disposal, and forward such approval to DDSAL. If required, DDSAL chairs a pre-disposal meeting and prepares a formal disposal plan with technical advice and guidance from EMTs. For minor equipment, the responsible EMT and assigned managers (i.e. ESM, or DMMD) initiate an authorized disposal action. Responsible LCMMs provide technical advice on request and DDSAL coordinates the disposal process. The bulk of minor equipment materiel held in the CFSS is identified and disposed of through the Excess Materiel Review Process. This process performs regular reviews of inventory and routes the information to the responsible ESM for technical evaluation and advice on disposal action.

6. Surplus assets are sold, donated or transferred “as is, where is”, with no warranty as to condition, serviceability or fitness for use. The government assumes no liability for accident, injury or loss resulting from the use of the asset subsequent to disposal. Despite this, surplus materiel shall be protected against modification and reduction of inventory value until physically transferred to PWGSC’s Crown Assets Distribution Centres (CADC), its agent or customer.

INITIATING DISPOSAL

7. Whether an asset has marketable value or not, owning it costs money. With low-value assets, the costs of storage, handling and administration can quickly add up to more than the value of the item. With high-value items, the capital tied up in them is unavailable for other uses. Timely identification and disposal of surplus assets is therefore essential.

8. EMTs, in keeping with the policy stated in CFAO 36-53 Materiel Disposal, must pursue a vigorous, well-managed disposal program to reduce or avoid the cost of retaining surplus materiel. Disposal action is generally undertaken when a materiel asset satisfies one or more of the following criteria:

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a. The operational requirement for the item no longer exists;

b. The item has been replaced;

c. The item is obsolete;

d. There is a lack of spares, and spares are no longer available;

e. The maintenance or repair costs are uneconomical;

f. There are excess stocks; and

g. The stock is defective or time-expired and cannot be revived or rectified.

9. It is necessary that EMTs periodically review all assigned materiel holdings to determine if disposal action is warranted.

10. In order to dispose of excess or surplus materiel, EMT members must have knowledge of any and all supply stocks stored in depots. Equipment managers must take a proactive role, by assessing the quantity of spares needed to support operations against the risk of ridding the supply system of items that may be required later on. A major concern relating to the disposal of excess materiel is the fact that not all materiel associated with a variety of older major and minor equipment/systems was logically connected in the CFSS to its supporting equipment. Therefore, it is an EMT’s responsibility to investigate thoroughly all equipment holdings to ensure that all stock related to a surplus item is identified for disposal and no “orphan” items are left in the supply system. The process model to initiate disposal action is presented in Figure 12-2.

Figure 12-2 Initiate Disposal Process

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CFAO 36-53, Materiel Disposal

CTAT Intranet Site

DAOD 1005-1, Return of Proceeds from the Sale of Surplus Assets


DDSAL

DQA Controlled Technology Access Transfer (CTAT) Office

ESMs

SMs

DISPOSAL PLANNING

INTRODUCTION

11. Disposal planning encompasses a number of activities that should take place over the entire life cycle of an asset. These activities are intended to facilitate the eventual disposal of the asset by identifying:

a. Authorities, concepts, policies, arrangements and responsibilities for disposal;

b. Components that can be removed and reused before committing the equipment to disposal; and

c. Any equipment or components that should be protected for targets, displays or museum purposes.

12. Planning the disposal of materiel involves four steps. These are illustrated in Figure 12-3.

Figure 12-3 Disposal Planning Processes

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13. The information gathered, and decisions made, during the disposal planning process should be forwarded to DDSAL for inclusion in the disposal plan. There are two categories of disposal action: major and minor. Major disposal operations encompass all surplus class “A” equipment (i.e. vehicles, ships and aircraft). In addition, significant quantities of class “B” equipment (items that are valued at over fifty dollars and that are repairable), when grouped together as a system, may realize a high resale value and consequently are handled as a major disposal project. Major disposal projects are always carried out in accordance with a formal disposal plan. A formal disposal plan is not usually required to support minor disposal actions such as excess stock.

14. DND must take into account the heritage value of surplus assets. When appropriate, representative examples of surplus equipment must be preserved and made available to organisations such as federal, provincial, municipal and not-for-profit museums; or municipalities, Canadian Legions and veteran associations.

DEFINING DISPOSAL REQUIREMENTS

15. The first step in disposal planning is to define the requirements of the disposal effort. When planning for disposal, EMT members must consider how the disposal of the asset and its supporting materiel would impact on CF operational and support capabilities. Some of the more common factors to be considered in establishing the requirements include:

a. The feasibility of employing the assets in another role (identify applicable EAC/ERN);

b. The disposition of GSM held by contractors, and rendered surplus;

c. The elimination of specialized support including R & O;

d. The effect of the disposal on existing technical data or documentation;

e. The disposition of related MSE, Accountable Advanced (AA) spares, Government Furnished Overhaul Spares (GFOS) and Contract Issued (CI) spares;

f. Existing TEMS contracts and standing offers;

g. Existing Memoranda of Understanding (MOU) with the US and other NATO allies;

h. The review of COLOG agreements; and

i. The preservation of artefacts for historical purposes.

16. The next step is to identify fully all related equipment, assemblies, subassemblies and components to be discarded; including logistics support resources such as tools, test equipment, support equipment, technical data and publications, training, facilities, etc. ELDs and ESLs are invaluable tools in helping to identify operational and support holdings.



A-LM-505-641/JS-001 (MMI 1640), Material Requirements Listing (MRL) and System Manual Computation Report (SMCR)


DGAEPM Manual of Aerospace Procedures – Process DG15.002 – Disposal or Storage of Aeronautical Products and Associated Equipment


DDSAL (Disposal Coordinator)

Divisional/Directorate EPM R & O


DTICS 3-4 (EAC)

DTICS 5 (Documentation)

SMs

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SELECTING A DISPOSAL PROCESS

17. Once the decision to take disposal action is made and all materiel is identified, the next step is to determine the appropriate disposal process. CFAO 36-53 provides specific procedures for EMTs to implement disposal action. There are several methods of disposal used by the government:

a. Disposal for proceeds. Surplus assets should normally be sold at fair market value in a manner that maximises revenue and minimises expenses. To the greatest extent feasible, the general public should have the opportunity to purchase surplus assets and the actual selling should be done by the private sector.

b. Trade-in. Use the existing asset, including all spares and documentation, as partial payment for new assets.

c. Sale to a Limited Market. To a limited market or sale at other-than-market value.

d. Gratuitous Transfer. (Donation) of valuable assets. Some donations are pre-approved as part of an ongoing government program (e.g. the Computers for Schools Program). In all other cases, the donation requires the Minister’s approval.

e. Scrapped. Assets with little or no market value may be scrapped in an environmentally acceptable manner.






Divisional/Directorate Procurement R & O Staff

CONTROLLED GOODS

18. In considering the disposal options for an asset, a key factor is the legal restriction on the distribution of the defence technology. DND policy states that in the management of Controlled Goods, DND employees and CF members shall dispose of controlled goods in a manner that meets all laws, regulations, international agreements, contracts, licenses and other agreements that govern the use or transfer of controlled goods. It further states that DND personnel must ensure that all reasonable efforts are made to prevent unauthorised access to controlled goods. Any restrictions on the defence technology shall be reflected in the disposal plan. DND is obligated to identify Controlled Goods within its inventory and check the status of a good prior to its shipment, sale, disposal or loan. Disposal may only be through registered Canadian or US companies and EMTs must ensure that everyone receiving Controlled Goods are aware that they are controlled. In MASIS and CFSSU the NATO Demilitarization Code (DMC) will be added.

19. DMC Assignment ensures that controlled technology and data are identified and therefore protected from improper transfer to third parties. During disposal demilitarization is the action taken to render equipment unusable for its military purpose. The demilitarization changes the status from ‘controlled’ to ‘not controlled’. The witness (rank of Sgt or above) must sign the Certificate of Demilitarization and must determine that the item was indeed demilitarized before signing the certificate. EMT’s must ensure that a copy of the signed certificate is held locally for a period of five (5) years. The certificate template is on the CTAT intranet site.

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Controlled Goods Regulations (CGR)

DAOD 3003-0, Controlled Goods

DAOD 3003-1, Management of Controlled Goods

International Traffic in Arms Regulations (ITAR)



SUPPORTING THE PREPARATION OF A DISPOSAL/INVESTMENT RECOVERY PLAN

20. Preparation for disposal must be considered at all stages of a project and disposal plans provide the framework for the effective and efficient removal of surplus, obsolete and uneconomical materiel from the CF inventory. During disposal the materiel is sold to authorized custodians or it is returned to DND for disposal action. Support contracts are closed out and any spares and technical information is returned to DND for disposal. The plan provides a focal point for the efforts of all staff who have an interest in the equipment or system undergoing disposal, and ensures that all aspects of the disposal are carried out in a timely and systematic manner. EMTs provide technical support to DDSAL in the development and preparation of a Disposal Plan. DDSAL distributes the draft to all OPIs for review and comment. After incorporating the comments, DDSAL issues and implements the disposal plan, and coordinates disposal activities.

21. ELDs, as the primary materiel management document, are an excellent vehicle for disseminating disposal plans to all interested personnel. A review of the applicable ELD should be the first step in the disposal planning process as it may contain the initial disposal strategy, developed during the acquisition process as a planning aid for responsible materiel managers. It is recommended that LCMMs develop a Hazardous Materiel List and a CTAT List which will aid the development of a comprehensive Disposal Task List.







SMs

PHYSICAL DISPOSAL OF MATERIEL

INTRODUCTION

22. The disposal of DND assets is the joint responsibility of the environmental EPMs/EMTs, DDSAL/SMs and PWGSC’s CADCs. EMTs are responsible for overseeing the identification and disposal of all assigned equipment and systems including all support equipment.

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23. DND is responsible for ensuring that any restrictions regarding disposal that were imposed as a condition of original purchase (e.g. international agreements or treaties, licensing requirements, or controlled technology restrictions) are respected, and are imposed on any subsequent buyer with full force and effect. Where such assets are being sold for museum display or scrap, it is DND’s responsibility to ensure that the assets are permanently disabled to the satisfaction of all parties to the original purchase agreement. DDSAL role is to oversee the process of moving out the materiel and its technical documentation out of the CF Supply System through Asset Disposal Agency (Crown Assets for saleable items, scrap from uncontrolled non-hazardous materiel, hazardous materiel disposal agency for HAZMAT, and licensed disposal agents for controlled materiel). The EMT identifies what materiel is hazardous, what materiel is controlled its location.

SUPPORTING THE DISPOSAL OF MAJOR EQUIPMENT AND SYSTEMS

24. Once the disposal plan has been implemented, the ESM is responsible to provide ongoing technical support to the disposal coordinator (DDSAL) in order to ensure that the disposal is carried out in a timely and economical manner. The ESM should consider any means to support the principle of purging the inventory efficiently, quickly, and completely of materiel determined to be surplus.

25. It is often suggested that if the materiel were refurbished before being sold, it would generate a higher return price. In general, there are limited resources available to recondition, overhaul, repair, refurbish and/or relocate material being disposed of for the purposes of obtaining a better disposal price. Investments in this area do not always pay off, and when they do, they do not necessarily accrue to the actual investing organization. Exceptions may arise when surplus military equipment is offered to eligible foreign military services.

26. For surplus warlike materiel, such as warships, combatant-type aircraft, armoured vehicles, weapons, ammunition, etc., disposal action shall not be undertaken without approval of DDSAL. CFAO 36-53 details the specific procedural requirements. Certain types of equipment must be disabled and/or ensured to be safe prior to disposal. Materiel shall not be refurbished before sale.




A-LM-505-640/JS-001 (MMI 1640), Materiel Management Instruction - Equipment Application Codes – Assignment, Establishment, Management and Update Procedures




DMCM Class Managers


DTICS 3-4 (Listing and Deletion of EACs)

ESMs

SUPPORTING THE DISPOSAL OF MINOR EQUIPMENT AND SPARES

27. EMTs are required to provide some level of technical support in the disposal of minor equipment and spares, regardless of the equipment and spares category. This stage of the disposal process offers EMTs a final opportunity to review and verify that all the ramifications of the disposal have been considered and planned. In addition, EMTs should take a final look at the impact of the disposal on materiel authorization documents and technical data holdings. EMTs should contact the CTAT Office for advice and assistance as required.

28. Normally, materiel disposal must be supported by either a System Excess Report Disposal Certificate (SERDC) for excess material, or a Disposal Certificate (form CF 1303 for obsolete materiel).

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DTICS 3-4 (EACs)

ESMs

SMs

SUPPORTING THE DISPOSAL OF AUTOMATED DATA PROCESSING (ADP) EQUIPMENT

29. Materiel Group divisions, and EMTs by extension, are charged with the management of information technology. This responsibility includes the planning, development, implementation, operation and disposal of ADP systems.

30. All federal government departments are offering/donating their surplus computer equipment and software to Canadian schools. Industry Canada’s Computers for Schools (CFS) Program has a mandate to collect surplus desktop and laptop computers and associated peripherals, refurbish them, and donate them in fully working condition to elementary schools, secondary schools, and public libraries. A rigorous allocation procedure has been put in place to ensure equitable distribution of these assets across Canada.

31. All personal computers (MS-DOS/Windows and MacIntosh) and associated monitors, keyboards, mice, printers, modems, servers, hubs, network cards, disk operating systems and related equipment that become surplus to government requirements, must be offered intact to the Industry Canada CFS Program. DND is not authorized to sell, trade, donate or otherwise dispose of these assets prior to making this offer; however, DND is responsible for the disposal of any equipment that is not accepted by the CFS Program. Further information on the Computers for School Program may be obtained by telephoning (800) 268-6608 or contacting DDSAL.

SUPPORTING THE DISPOSAL OF TECHNICAL DATA

32. The disposal of technical data requires special consideration and must be undertaken with great care. When only a portion of the total equipment is declared surplus, no documentation disposal action is taken, since the technical documentation is required to maintain and operate the in-service equipment.

33. A detailed examination of unclassified technical documentation is recommended to ensure that classified materiel – which requires different handling – is not included. DDSAL and DQA should be made aware of the technical data and documentation considered for disposal in case it might be of interest to Canadian Museums or other specified agencies.

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A-AD-D11-001/AG-001, Record Scheduling and Disposal Manual

A-LM-505-851/JS-001(MMI 1851), Disposal of Obsolete Technical Documentation

A-SJ-100-001/AS-000, Security Order for the Department of National Defence

CFAO 57-12, Restrictions on Release of Technical Data to Non-DND Agencies

DGAEPM Manual of Aerospace Procedures – Process DG15.002 – Disposal or Storage of Aeronautical Products and Associated Equipment


DDSAL (Disposal Agency)


DTICS

ESMs

DISPOSAL AT REMOTE SITES AND OUTSIDE CANADA

34. If the materiel resides at remote sites or outside Canada, it should be disposed of for proceeds. In areas where there is a PWGSC presence, contracts with either domestic or foreign contractors should be established by PWGSC for use by all Canadian departments or agencies. Alternatively, if cost-effective, the disposal service agencies of foreign governments may be used through arrangements negotiated by PWGSC. Where there is no PWGSC presence, departments may make their own arrangements with domestic or foreign contractors or agencies. In such instances, the advice of DDSAL should be solicited. When no suitable disposal-for-proceeds option is available, deployed assets should be relocated to a convenient Canadian city only if the anticipated proceeds of the sale exceed the anticipated relocation and selling costs.

35. When it is not practical for EMTs to dispose of assets for proceeds and the relocation of assets is not cost-effective, the EMT should use other disposal options as appropriate. In foreign countries, possible recipients would include host governments or humanitarian agencies and not-for-profit groups that are recognised by the host country, any treaty organization (of which Canada is a member), or the United Nations. DND may adapt procedures as required to suit local customs and conditions provided that these procedures comply with Canadian and local standards of ethics and environmental protection. DND is responsible for ensuring that the necessary delegated authority is given to managers of on-site responsibility centres.

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PART 13

PROCUREMENT MANAGEMENT

INTRODUCTION

1. The primary objective of defence procurement is to provide the necessary materiel and support to meet the capability requirements of the CF in a timely and cost-effective manner. The procurement process must be carefully planned and conducted in a way that:

a. Obtains the best possible value for money;

b. Promotes Canadian defence production capability;

c. Enhances the technological capability of the Canadian defence industry;

d. Is in accordance with existing bilateral/multilateral defence agreements;

e. Furthers the attainment of national socio-economic policies and objectives; and

f. Is in accordance with NATO and other standardization and interoperability policies.

2. The bulk of DND procurement is centralized at NDHQ as part of capital acquisitions and O&M activities. EMT members initiate procurement actions to correct noted deficiencies in the performance of their equipment or defence systems, to carry out technical investigations, to obtain engineering and technical assistance and to satisfy other requirements including repair and overhaul services. Units and organisations often are authorized to procure certain items directly. In some cases, this involves the procurement of materiel normally supplied from central procurement agencies. EMT staffs must ensure that local purchases are coordinated with national-level activities.

3. Treasury Board (TB) directives and government contracting regulations set out the conditions under which government procurement authorities may enter into contracts. In addition, they identify the various categories of procurement contracts and establish financial limits for each category, beyond which TB approval is necessary. PWGSC, under the PWGSC Act, is the primary authority for the procurement of goods and services on behalf of DND and other government departments. PWGSC and TB have delegated certain contracting authorities to the Minister of National Defence (MND) that the MND has further delegated to Group principals, including ADM(Mat).




MGI 8-3, Division of Responsibility between DND and PWGSC for the Acquisition of Materiel and Services

Treasury Board Contracting Policy


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PROCUREMENT CONCEPTS

TYPES OF PROCUREMENT

4. There are numerous types of procurement. These include competitive, sole-source, OGD and FMS. The competitive and sole-source processes (illustrated in Figure 13-1) are similar, except that sole-source does not have bid solicitation/evaluation since the source of supply (i.e. contractor, supplier) is already known. However, it is government policy to use the competitive process wherever possible. Sole-source should only be used by exception and only when there is a pressing emergency, when the solicitation of bids is not in the public interest (i.e. for security reasons) or when there is only one source of supply (i.e. proprietary rights). See DAOD 3004-1 for details.

5. The type of procurement generally is determined by PWGSC management with recommendations from the SPAC or the Advisory Committee for Repair and Overhaul (ACRO). When selecting a procurement type, other government requirements such as WTO-AGP, NAFTA, and regional development agencies must not be overlooked. PWGSC may also apply criteria reflecting government policies that are beyond the scope of DND. Nevertheless, factors such as the capability to do the work, financial scope, urgency, security, efficiency, and cost effectiveness should be the major priorities when making a selection. Some specialized procurement options that the EMT may encounter include:

a. Benefits Driven Procurement (BDP);

b. Pre-Facilitated Contracting (PFC); and

c. Total Package Procurement (TPP).

I d e n tifyR e q u ire m e n ts

C O M P E T IT I V EP R O C E S S

S O L E S O U R C EP R O C E S S

R a ise P I &S o le S o u rc eJ u s ti f ic a tio n

S u b m it P I &J u s ti f ic a t io nto P W G S Cfo r A c tio n

P W G S CA w a rd s

C o n tra c t

P W G S C /D N DM a n a g eC o n tra c t

R a iseP I

S u b m it P Ito P W G S Cfo r A c tio n

P W G S CP o s tsR F P

P W G S C& D N D

E v a lu a te P ro p o sa ls

T AA c c e p ts

D e liv e ra b le s

P I - P ro c u re m en t In s tru m en t

Figure 13-1 Competitive and Sole-source Processes

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PROCUREMENT PROCESS

6. The procurement process is defined by the PWGSC Supply Manual as, “the process of obtaining materiel and services which includes the determination of requirements and the acquisition from a supply system or by purchase from the trade.” The procurement process has three phases:

a. Procurement Planning (i.e. requirements definition and procurement planning);

b. Procurement Execution (i.e. bid solicitation, contract award, progress monitoring, delivery follow-up, payment action); and

c. Close-out Contracts (i.e. contractor agreement to final claim, proof of delivery, project close-out).

7. EMTs have a major role in each of the process phases; however, procurement cannot begin until the necessary funds have been identified and approved. While EMTs have at their disposal a range of existing contracts and standing offers to procure goods and services, without approved funding, there can be no procurement. Therefore, funding has to be obtained to support the project and the EMT Leader has to make a case that will support the funding.

TYPES OF SOLICITATION

8. A variety of tools are available to request procurement information or to solicit bids from industry. These include the Request For Quotation (RFQ), Invitation To Tender (ITT), RFP and Request For Standing Offer. The RFP is the most common tool used to procure goods and services.

RESPONSIBILITIES

9. Within ADM(Mat), the Financial Administration Act (FAA) authority, and responsibility, to initiate and to manage procurement activities is delegated to EPMs and subsequently to the EMT and its members. Within the EMT, there are three centres of responsibility for procurement issues; the procurement manager (also called the requisitioning authority), the TA, and the EMT Leader.

10. The procurement manager defines the procurement strategy in concert with the TA and the contract authority (generally resident within PWGSC). This individual assembles all the information required to prepare the PI, to verify entitlements, to obtain authorization to initiate the procurement, to coordinate the internal contract management process, which includes serving as the DND interface with PWGSC, and to process requests for contract amendments. The procurement manager also exercises those responsibilities specified in the contract and in subsequent amendments.

11. The TA identifies the technical requirements and obtains the necessary funding for the procurement. This individual develops and collates the technical documentation necessary to support the procurement, manages the technical aspects of the contract, and accepts the deliverables. The TA also authorizes any payments to the contractor.

12. The EMT Leader generates the business plans and budget forecasts that include all procurement activity within the EMT. Where necessary, the EMT Leader acts as project manager and oversees all assigned procurement related activities within the EMT. Figure 13-2 provides an overview of the major activities performed by EMT members in support of the procurement process.

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PROCUREMENT PLANNING Identify Procurement Requirements

Request Price and Availability (P&A)

Obtain Authorization and Funding

Request Procurement Action

PROCUREMENT EXECUTION

Procurement Instrument Development

Contract Selection and Award

Contract Management

Prepare Statement of Work

Prepare a Technical Description of the Required Goods Develop a List of Contract Data Deliverables Identify and Document Special Terms and Conditions (T&Cs) Define Proposal Requirements and Bid Evaluation Criteria

Provide Technical Support to Contract Selection and NegotiationEvaluate Technical Merit of Bids

Monitor the Development and Production of Deliverables Manage Government Supplied Material (GSM) Evaluate and Accept Contract Deliverables

Figure 13-2 EMT Support to Procurement



DAOD 3004-0, Contracting


PWGSC Supply Manual

DC Pol


PROCUREMENT PLANNING

INTRODUCTION

13. Planning for procurement is the most important step in the MA&S process. It is at this point that a TA has the greatest influence on the future success of the procurement action. To be successful, a procurement action must result in the acquisition of all the required goods and/or services, at the appropriate time, and at the optimum cost over the life cycle of the item. Depending on the nature, complexity and urgency of the requirement, procurement planning should encompass, as a minimum:

a. A confirmation of the need for the procurement;

b. An unambiguous identification of the procurement requirements;

c. The identification of the financial scope, lead time and potential sources of supply;

d. An evaluation of the need for price and availability enquiries;

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e. An evaluation of the need for security, data rights and licenses;

f. An evaluation of the suitability of existing contracts or standing offers;

g. The availability of funding; and

h. Any other matters peculiar to the requirement.

14. This information is captured in the Procurement Master Plan. The main activities performed by EMT members during the procurement planning phase are:

a. Identification of requirements;

b. Requesting price and availability; and

c. Obtaining authorization and funding.

PROCUREMENT MASTER PLAN

15. The procurement master plan is a tool to document the procurement decision-making process and provide an audit trail. It is applicable to all procurement requiring a new contract – for which a procurement master plan was not previously developed – regardless of size, scope, or complexity. To develop a procurement master plan that best suits the procurement, it is necessary to develop a procurement strategy, develop a pricing strategy, develop procurement milestones, and conduct a risk analysis. Guidance on the development of the procurement master plan is available on the MA&S Desktop (MAT KNet). This procurement master plan should not be confused with the formal Procurement Strategy document required for most procurements over $2 million. The information required to fill out the Procurement Strategy Committee – Detail Document (PSC-DD) is derived from Part I of the procurement master plan. The PSC-DD is then submitted to the appropriate committee for approval of the procurement strategy and provision of the PRC Record of Decision. The procurement master plan also provides the project procurement management information required for Annex 11 of the Project Management Plan, and the procurement milestones become a part of the overall project master schedule.

IDENTIFICATION OF PROCUREMENT REQUIREMENTS

16. Prior to initiating procurement actions, the EMT must state precisely what goods, services, and data are required. The basic elements of this definition are a description of the scope of the work (or attributes and capabilities of the item), a schedule for delivery, and an estimated cost. Identifying the procurement requirements can be a slow process since financial planning for O&M activities begins at least one year ahead of the actual acquisition, when Business Management Team (BMT) staff canvass their organization for their financial requirements as part of the business planning process. Therefore, any new requirements must be identified well in advance of anticipated procurement action. Figure 13-3 provides some guidance on the requirements for the procurement of goods, services, or information.

17. Identifying the procurement requirements also entails an examination of possible procurement vehicles. It should also be ascertained if any of the identified requirements can be satisfied using in-house resources such as ETEs or Fleet Maintenance Facilities (FMFs). It should also be determined if any existing contracts or standing offers could be used to satisfy some or all of the requirements.

REQUESTING PRICE AND AVAILABILITY (P&A)

18. P&A enquiries are a formal means by which PWGSC solicits price and availability information on goods and/or services from potential contractors or suppliers. This formal process is normally used only for major acquisition projects. The EMT should be aware that Procurement Managers would initiate P&A enquiries in response to substantiated requests from a TA. The request and all supporting documentation is staffed to the appropriate Procurement Manager in accordance with the procedures contained in MMI 1322, Price and Availability (P&A) Enquiries. Based on this information, the Procurement Manager prepares and initiates the P&A enquiry through PWGSC.

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To Procure Goods To Procure Services To Procure Information

Determine the total quantity (where applicable) of primary items (i.e. systems or equipment) to satisfy the operational requirement. This is done in conjunction with the Project Director, based on the Statement Of Requirement (SOR), or (for O&M activities) in conjunction with the ESM.

Determine the total quantity (where applicable) of logistics support resources necessary to support the system or equipment throughout its life cycle. Some of the principal logistics support requirements to consider are:

a. Mobile Support Equipment (MSE) and Special Equipment Vehicles (SEVs);

b. Special Production Tooling (SPT) and Special Test Equipment (STE);

c. General Purpose Test Equipment (GPTE) and Automated Test Equipment (ATE);

d. Training and tools;

e. Hardware/software tools and components;

f. Storage and maintenance facilities; and

g. Component spares and repair parts.

Determine the services to be acquired. Services can range from full systems engineering support as part of a major development project, technical or engineering support services for O&M activities or the update of a publication. Services to consider include:

a. Repair and Overhaul (R & O) support;

b. Research and Development (R&D);

c. Field Service Representatives (FSRs);

d. Technical Field Representatives (TFRs);

e. Training support;

f. Independent Verification and Validation (IV&V);

g. Acceptance testing;

h. Data and information management services, including publication and technical drawings;

i. Modification embodiment (installation support); and

j. Technical investigation.

Determine the types and quantities of data to be acquired based on the maintenance plan. Only data necessary for in-service support should be procured. Data requirements can range from:

a. Systems Engineering data including technical drawings, software description, parts lists, engineering change data, Test and Evaluation (T&E) data, and Configuration Management (CM) data;

b. Integrated Logistics Support (ILS) data;

c. Technical publications such as CFTOs;

d. Published works (e.g. US DOD Technical Publications) in a typical O&M procurement activity; and

e. Data necessary to support all aspects of a major development project.

Figure 13-3 Procurement Requirement Identification

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19. Suppliers know that when they respond to a P&A enquiry they are not competing for business and responses are not binding. However, they do expect that following the enquiry, PWGSC will issue an RFP under which they may compete, even if they did not reply to the enquiry. Therefore, it must be ensured that all P&A enquiries are worded so as to encourage responses from as many potential contractors and/or suppliers as possible.

OBTAINING AUTHORIZATION AND FUNDING

20. Funding must be in place prior to the initiation of a procurement action. Capital acquisition projects obtain authorization and funding through the DSP. Funding for O&M procurement activities is obtained through the submission of a Business Case, its subsequent approval, and its introduction into the EMT’s and Divisional Business Plans.

21. The first step in any solicitation for funding is to know how much is needed. Generally, a LCC analysis is performed to determine the total cost associated with the acquisition of the goods, services or data. MMI 1106, Canadian Forces Life Cycle Cost Guidance Manual provides examples of various LCC applications as a guide to EMT staff in developing their analyses. LCC and other cost estimates provide senior managers with the dollar values on which to base their decisions. The total cost of an equipment or system comprises all recurring and non-recurring costs including acquisition, operation, maintenance, support, and, where appropriate, disposal of the materiel.

22. For capital acquisition projects where DMS approval is required, a SS(EPA) is developed and staffed for approval. This includes the procurement requirements and their associated cost estimates. SS(EPA) approval requires the submission of substantive cost estimates (i.e. estimates accurate to within 10%).

23. For O&M procurements, a Business Case is developed that describes the requirements, the options analysis, cost estimates and a recommended course of action. Coordination with the divisional BMT is necessary for the inclusion of any MR or O&M funding requirements in the annual Call to Estimates for the FY in which the procurement will be needed. When an urgent requirement arises for which funds have not been previously identified, the divisional BMT financial resource manager should be consulted.



A-LM-505-106/JS-001 (MMI 1106), Canadian Forces Life Cycle Cost Guidance Manual

A-LM-505-322/JS-001 (MMI 1322), Price and Availability (P&A) Enquiries

DAOD 3004-1, Procedural Overview – Contracting


DAOD 3016, National Security Exception Under Trade Agreement


DC Pol

Divisional/Directorate Procurement Managers

DMASP 4-5

ESMs

SMs

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EMT SUPPORT TO PROCUREMENT INSTRUMENT DEVELOPMENT

PROCUREMENT INSTRUMENT

24. The PI, commonly known as the contract, is usually prepared by PWGSC and is the medium to procure materiel and services. The EMT prepares a requisition that provides PWGSC with the information and instructions necessary to prepare and issue an RFP, an ITT, an RFQ or a contract. Figure 13-4 provides a sample of the typical contents of a requisition that is used for competitive procurement and of the department(s) (in parentheses) responsible to develop its content. For sole-source procurement, only paragraph (d) applies.

a. Bid Response Requirements (for solicitation only). (PWGSC/DND) b. Bid Deliverables (for solicitation only). (PWGSC/DND) c. Evaluation Plans (for solicitation only). (PWGSC/DND) d. Proposed Contract Package including:

(1) T&Cs (a) Packaging and Marking (DND) (b) Acceptance (DND) (c) Security (PWGSC/DND) (d) Industrial Benefits (Industry Canada) (e) Suggested Method and Basis for Payment (PWGSC/DND) (f) Quality Assurance (DND) (g) Delivery Instructions (DND) (h) Invoicing (DND) (i) Standard Clauses (PWGSC/DND) (j) Peculiar to Project Clauses – Work related (DND) (k) etc.

(2) Statement of Work (DND), (3) Specifications (when required) (DND), (4) CDRL (for data, optional) (DND), (5) DIDs (for data, optional) (DND), (6) Contract Deliverable List – Contract Line Item List (optional) (DND), and (7) Technical Data Package (as required) (DND).

Figure 13-4 Typical Content of a Requisition for Competitive Procurement

EMT/TECHNICAL AUTHORITY RESPONSIBILITIES

25. The EMT is responsible for developing the technical data and documentation necessary to support the procurement/requisition. Specifically, the TA is responsible for:

a. Describing in a SOW the work to be done and how it will be controlled and documented;

b. The development of a technical description of the materiel or services needed via a specification, an item description, or an assessment of the suitability of existing documentation;

c. Developing a list of deliverables (goods, services, or information) to be identified through a Line Item in a contract, a Deliverables Section in a SOW or with DIDs. Generally, when DIDs are used, a CDRL listing all data deliverables should be developed detailing the schedule, delivery points, and approval requirements, etc.;

d. Identifying and documenting T&Cs peculiar to the project. These T&Cs differ from the standard “boilerplate” clauses and other administrative and financial clauses generally inserted into the PI by the procurement manager or PWGSC contracting staffs;

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e. Developing evaluation criteria for the proposals, when applicable. Normally, evaluation criteria must be developed before PWGSC will issue an RFP;

f. Establishing bid/proposal requirements, as necessary, including the specific manner in which the TA wants bidders to present their proposal (i.e., format, type of information needed); and

g. Preparing a memorandum/email to the Requisitioning Authority requesting an RFP/contract. This details the requirements, time frame of project, authorized funding, FE code, QA requirements, Intellectual Property requirements, security requirements (Security Requirement Checklist [SRCL]) and any other pertinent information.

26. The complexity of each package developed by the TA varies greatly, depending on the magnitude of the work being contemplated and the requirement for data deliverables. To eliminate any possibility of confusion regarding what the contractor is expected to deliver, the originator of the requirement must ensure that the required goods and/or services are described clearly and unambiguously in all contract demands. In the legal interpretation of ambiguous wording, the judgement generally goes against the party that wrote the contract.

PREPARATION OF A STATEMENT OF WORK (SOW)

27. The purpose of the SOW is to define the work to be accomplished, what the contractor shall deliver to DND, and how the management of that work shall occur. Although not all contracts call for the delivery of a physical product, almost all of the procurements initiated within EMTs do have a service component. For example, the task(s) may involve the development of technical drawings, publications, or manuscripts; the conduct of tests or analyses; or the repair or overhaul of equipment or components. A SOW also provides a means of defining any technical data requirements that cannot be requested directly in the contract, as they evolve directly out of the tasks specified in the SOW (e.g. project management, engineering development or integrated logistics support activities). Part 10, Technical Data Management, provides additional information and guidance on the acquisition of technical data. Refer to Figure 13-5 for an example of a SOW framework.

28. A SOW is prepared in accordance with D-01-002-009/SG-001, “Standard for the Preparation of a Statement of Work.” The procurement requirements are evaluated and all stakeholders in the procurement may have the opportunity to participate in the preparation of the SOW. In a complex project, the scope of knowledge required to develop the SOW may be beyond the capability of any one individual or organization. Input and assistance from other organizations will be necessary. The need to issue the SOW in both official languages must be considered.

29. As illustrated in Figure 13-5, the initial step in developing a SOW should be to generate a framework that identifies all major activities to be performed by the contractor. This should include a breakdown of all related tasks and applicable standards and/or specifications, deliverables related to each of the tasks, and the associated project management requirements. This approach provides a good way to understand the complexity of the effort requested of a contractor before starting to write the formal SOW.

30. A key section of the SOW is the definition of all the requested work. Each task is defined, and for complex tasks, a Work Breakdown Structure (WBS) is developed. It is important that each task be clearly and adequately defined in the SOW, specifically identifying any special procedures, specifications, or standards to be used during the work and the deadline for completing the tasks. This establishes a series of simpler, more clearly defined activities, which is easier for a prospective contractor to bid. The lower the uncertainty in the definition of the work, the lower the contingency in the price, and therefore the lower the overall cost of the contract. Where applicable, additional or subsidiary SOWs may be developed and called up through the main SOW. Any security requirements related to the work must be identified.

31. A technical review is necessary to ensure that all relevant procedures, specifications, standards, and other technical documentation is applicable in carrying out the work. Only applicable documentation should be referenced and within each document, only applicable parts, sections or paragraphs should be cited (i.e. tailored to fit the requirement). The number of references must be kept to a minimum. It must be ensured that references are current and available to the prospective bidder.

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W O R K R E Q U IR E M E N T S D E L IV E R A B L E S M A N A G E M E N T

2 .0 P ro to ty p e A c tiv it ie s G ro u n d te s t p la n M o n th ly re p o rts

2 .1 M a n u fa c tu re a n d a s s e m b le L e v e l 2 D rw g s M ile s to n e p a ym e n to n e s e t o f th e in te rfa c e e q u ip m e n ta n d m o d k it a s p e r a p p ro v e d E M C /E M I te s t p la nd e s ig n

W e ig h t a n d2 .2 P ro to ty p e th e in s ta lla tio n b a la n c e re p o rtsa s p e r th e a p p ro v e d d e s ig n

2 .3 P re p a re a g ro u n d te s t p la n

2 .4 P re p a re a in te g ra tio n te s t p la n a sp e r C -0 X -0 2 0 -0 0 7 /A M -0 0 0

2 .5 P re p a re a E M C /E M I te s t p la nin a c c o rd a n c e w ith M IL -E -6 0 5 1 D

2 .6 P re p a re a w e ig h t a n db a la n c e re p o rt in a c c o rd a n c e w ithC -0 X -X X X -0 0 0 /M W -0 0 0

Figure 13-5 Example of a SOW Development Framework

32. Deliverables must be tied to either the results of the work or the process of accomplishing (or managing) the work. A Deliverables section should be developed in a SOW only when the number of data items requested is small, the formatting is relatively simple, and the delivery frequency is minimal over a relatively short period of time. Otherwise, a CDRL and DIDs should be used. Not all projects call for the delivery of physical goods. There are instances when the deliverable is the performance of a function or service to the satisfaction of DND (e.g. being an ESM or a TA). In these instances, the only physical deliverable could be data such as a monthly progress report and/or a final report.

33. The management of the SOW must be decided and stated in the SOW. This includes the specification of work milestones and the establishment of a realistic project schedule.

34. Once a SOW is completed, it is important to verify that its content reflects the original requirements. Figure 13-6 provides a sample of the questions that should be asked when trying to determine the effectiveness of the SOW. A completeness and readability check must be performed to determine if the SOW is: easy to read; logically organized; complete; precise and clear; free of assumptions; free of errors; consistent with the rest of the RFP/contract; and directed to bidders/contractors. One final step before issuing the completed SOW is to circulate it to the procurement manager and the PWGSC contracting officer for review and comments.

35. A well-prepared SOW will solicit more responsive and realistic proposals, facilitate the evaluation of proposals, and allow for easier assessment of performance after contract award. All taskings identified in the requirements section must stipulate that the contractor shall do something or perform a task in accordance with a specification, a CDRL, an acceptance test, etc. Only ask for mandatory requirements in a SOW. “Nice to have” items should be listed separately as optional requirements in the RFP for purposes of evaluating the implications (i.e. cost, usefulness, added performance, added work effort, schedule delay, additional deliverables, etc.) of adding these requirements to the project.

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1.0 Scope a. Does the scope of the work accurately reflect the requirements?

b. Does the background explain the rationale for the project?

c. Is the terminology understandable by the contractor?

2.0 Applicable Documents

a. Are the cited standards and specifications really required?

b. Have they been properly tailored?

c. Are the references current and available?

3.0 Requirements a. Do the requirements satisfy the needs of the Department?

b. Is the most important element in meeting the Department’s needs clearly identified?

c. Are the requirements realistic, definite, non-restrictive and affordable?

d. Can the requirements be verified?

e. How will quality be assured?

4.0 Deliverables a. Are all data deliverables really needed?

b. Are the delivery media and standards realistic?

c. Have all necessary end-item goods and services been listed?

Figure 13-6 SOW Effectiveness Checklist

PREPARATION OF A TECHNICAL DESCRIPTION OF THE REQUIRED GOODS

36. Where applicable, the PI will require a full technical description of any physical products (i.e. goods, services, or information) to be delivered. The technical description must be of adequate scope to enable the contractor or supplier to deliver a fully compliant product.

37. The technical description required to support a procurement is very much dependent on the complexity of the requirement. Obviously, much more detail is needed to support a production effort than to buy spare parts. As a result, the technical description of a product may vary from simply specifying a manufacturer’s part number, a commercial item description, or a NATO stock number; to a full technical description of an item including appropriate specifications, standards, engineering drawings and associated lists, samples, or models. When a technical description is intended to become part of a procurement package, it is called a Technical Data Package (TDP). For additional information on this topic, see Part 10, Technical Data Management.

38. The technical description may take the form of a Statement of Requirement (SOR) that defines the product, its performance and physical characteristics, the environment in which the materiel is to operate, and its supportability requirements. The requirement for the TA to define the acceptance criteria in advance cannot be over emphasized. The contractor must know what will be the test of acceptability. Too often we want the contractor to develop acceptance tests for the TA to approve. The best test of acceptability is to assign performance criteria in advance and test to those criteria.

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DEVELOPMENT OF A LIST OF CONTRACT DELIVERABLES

39. The deliverables to be acquired on a contract could range from the delivery of a major system including support equipment and spare parts, to the delivery of data or documentation or services. While some deliverables (primarily goods) can be requested directly in a contract, others evolve directly from tasks identified in a SOW and generally relate to data. To fully understand a tasking, the project officer must understand the types of deliverables needed to manage the procurement effectively and to satisfy all aspects of a SOW, as well as the manner in which the deliverables themselves are to be managed.

40. Project managers, TAs, and ESMs are responsible for developing a list of all contract deliverables (i.e. goods, services and/or data). While goods are normally called up as line items in the contract, data deliverables are either identified in the Deliverables Section of the SOW or by DIDs and a CDRL for more complex tasking. As previously indicated, the definition of deliverables evolves from the technical and support requirement definition process, and is the responsibility of functional specialists within the project management team. For minor projects and O&M activities, an ESM (in consultation with the project sponsor) defines the contract deliverables.

41. Only data that is essential should be requested. There is no need to order reports if they are not read as it takes time, and therefore costs money, to prepare these reports. Also, too frequent reporting will cause cost and schedule escalation.

IDENTIFICATION AND DOCUMENTATION OF TERMS AND CONDITIONS (T&Cs)

42. T&Cs are used to impose constraints or provide direction to a contractor. While most clauses are included in a PI by the procurement and contracting managers, there are occasions when the TA has to advise a contractor of internal conditions or situations that might affect the conduct of the work.

43. There are two types of T&Cs that the TA must be aware of and identify to the Requisitioning Authority (RA) for inclusion in PIs: Standard Clauses and Non-standard Clauses. Standard Clauses, also known as PWGSC Standard Acquisition Clauses and Conditions (SACCs), are standardized clauses that have recurring use by the various procurement directorates and PWGSC. Non-standard clauses are typically specific to a project and are often defined by the TA. Any applicable standard clauses are identified in the requisition under development.

REQUEST FOR PROCUREMENT ACTION

44. The next step in the procurement process is for the TA to submit the developed documentation (i.e., SOW, T&Cs, item descriptions/specifications, bid evaluation criteria, etc.) to the procurement manager, with a request to initiate the development of an RFP or a contract. This request must also list other relevant information needed to process the demand, such as the responsible personnel, security requirements, priority, and any particular requirements that the bidder needs to submit as part of the proposal. This information is generally conveyed to the procurement manager in a hard copy memorandum or by e-mail with appropriate attachments. Depending on the nature of the requirement (goods, services, or data) and the selected method of procurement, there are a variety of procedures for requesting procurement action. MMI 1312 explains the various types of procurement contracts and the conditions governing their use. Providing adequate support information in the request for action enables the procurement manager to prepare and process the PI with minimal delay. This in turn ensures that the materiel needed to satisfy the requirement is received in a timely manner.

45. The procurement manager is responsible to decide on the type of PI (e.g. requisition or purchase order) to use when initiating procurement based on the purchasing agency, the source of supply, and the urgency of the requirement.

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A-LM-505-302/JS-001 (MMI 1302), Data Acquisition Guidelines for the Use of Data Item Descriptions (DIDs) and Contract Data Requirements Lists (CDRLs)

A-LM-505-310/JS-001 (MMI 1310), Standing Offers

A-LM-505-320/JS-001, Procurement Instrument and Requisition Standard Clauses

A-LM-505-477/JS-001 (MMI 1477), Acquisition of Engineering Services (TEMS)

A-LM-505-490/JS-001 (MMI 1490), Procurement of Modification Kits

CFAO 2-19, Contracting for Services

D-01-002-004/SG-001, Standard for the Preparation of CF Data Item Descriptions (DIDs)

D-01-002-005/SG-001, Standard for the Preparation of CF Contract Data Requirements Lists (CDRLs)

D-01-002-009/SG-001, Standard for the Preparation of a Statement of Work

D-01-007-000/AX-001, Index of CF Data Item Descriptions

D-01-300-100/SF-000, Standard for Specification Preparation – Technical Content



MA&S Desktop (MAT KNet) provides guidance on preparation of the SOW, specification, DIDs, CDRL, T&Cs and bid evaluation criteria and plan

MMI 1317, Procurement Instruments (PIs) Review of Tabulations of Tenders

MMI 1320, Standard Clauses – Procurement Instruments (PIs) Requisitions

Standard Acquisitions Clauses and Conditions (SACC) Manual

Contract Officers

Divisional Procurement Staff

ESMs

Procurement Managers

Supply Managers

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CONTRACT MANAGEMENT (TECHNICAL)

GENERAL

46. The project manager / TA must play an active role in the day-to-day management of the technical aspects of the contract. This includes:

a. Monitoring and documenting the progress of the contract with regard to quality, time and cost;

b. Resolving any difficulties as soon as they are encountered in conjunction with the Procurement Manager and documenting their resolution;

c. Requesting/suggesting contract amendments;

d. Managing any GSM that the contractor must have to carry out the required work;

e. Authorizing payments;

f. Verifying (or having someone else verify) the technical compliance of all deliverables and authorizing their acceptance into the DND inventory; and

g. Maintaining a record of correspondence.

MONITORING PROGRESS

47. Since it is not practical to have the DND TA available on-site throughout the course of a contract, technical monitoring must be accomplished through the review of progress reports and the periodic conduct of progress reviews and meetings. The type and frequency of reports, reviews and meetings should be identified in the SOW and, in the case of reports, in a DID and CDRL. Periodic progress review meetings are the most useful tools to maintain a smooth working relationship with the contractor. If a contract is operating smoothly, progress review meetings may become a formality. The following paragraphs provide guidance on technical review meetings, progress reports, and contract amendments.

48. Technical Review Meetings

a. Technical review meetings should be planned well ahead. Ensure that the schedule is known to all involved;

b. Agendas should be prepared, or contractor-prepared agendas should be reviewed and approved, ensuring that they contain current items of interest. They should be submitted prior to a planned meeting, preferably two weeks prior;

c. When the preparation of the minutes is a contractor responsibility, the minutes should be reviewed to ensure that they reflect the discussion of the meeting and that all action items are as agreed. The minutes should also be distributed to all attendees shortly after the meeting, preferably within two weeks;

d. Follow-up is required on all action items. It is recommended that meetings and action items be noted in Progress Reports; and

e. A permanent record should be kept of minutes to review meetings. The procurement manager and contracting officer must be advised of any decisions that might have implication on the terms of the contract.

49. Progress Reports

a. Record any scheduled progress reports to ensure they arrive on time;

b. Review the content of any progress reports to ensure that they address all pertinent information as requested in the Deliverables section of the SOW or in a DID;

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c. Ensure that appropriate corrective action is taken when progress falls behind schedule or there are

indications of technical problems; and

d. Advise appropriate divisional staff, a higher authority and the Contract Officer of actual and/or potential performance problems with the contract.

50. Contract Amendments

a. Review all contract amendments proposed by the contractor and assess their impact on operational capability, logistics support and project resources;

b. Notify all stakeholders of any proposed amendments in writing and request comments. Any received comments should be reviewed and assessed before making a decision;

c. Consult with divisional procurement staff who will advise the PWGSC Contract Officer to approve/reject the contract amendments. When it is decided to investigate the impact of the amendment, technical assistance should be provided to the PWGSC Contract Officer; and

d. When outside the scope of responsibility, the rationale for amending the contract be developed and submitted to a higher authority for approval.

51. Close liaison with the contractor helps maintain a smooth flow of information, without which all efforts at efficient contract management will fail. It is important to maintain the liaison procedures identified in the contract, usually in the T&Cs. A proper arms-length relationship must be maintained at all times with the contractor.

52. Anticipating problems is also part of managing a project. One of the more frequent problems is late deliverables. Management of the contract requires that the Project Manager ensure adherence to the project schedule by the contractor as defined in the contract. General terms and conditions of a contract have been developed to protect the interest of the Crown in these cases.

53. During the contracted work, the project manager should be prepared to answer any questions related to the work. This includes any questions relating to payments. The contracting authority will field any questions relating to the contractual terms and conditions.

54. It is important to follow up on a contract, both to provide feedback to the contractor, and to provide valuable reference information for future contracts. As part of post-contract administration, the project should be evaluated in terms of the quality of the contractor’s work and the timeliness with which it was done. A copy of the completed post-contract evaluation is forwarded to the contracting authority through the procurement manager.

MONITORING THE USE OF GOVERNMENT MATERIAL

55. Some contracts require that the Government supply the contractor with the various materials that are required to develop or produce the desired product. There are two classes of government supplied material. GFE is loaned to the contractor. GSM is material incorporated into the delivered product by the contractor. GFE may take the form of equipment or components, special tooling or test equipment, technical data, etc. DDSAL is the agency responsible for the management of all GSM/GFE and loan agreements with outside agencies. Project managers and TAs must monitor the use of GSM/GFE related to their contracts, and provide DDSAL with technical advice and guidance.

56. Any GSM/GFE requirements and management details must be clearly spelled out in the special T&Cs of the contract. Failure to deliver the required GSM/GFE might cause delays and/or extra costs that may have to be borne by the Government. Every effort must be made to avoid this situation.

EVALUATING AND ACCEPTING CONTRACT DELIVERABLES

57. The truest measure of the success of any procurement action is the delivery of the materiel needed to fully satisfy the operational requirement on schedule and within budget. Throughout the procurement process a lot of effort is expended to ensure the project’s success by providing a clear and unambiguous technical description of the materiel, and by carefully monitoring the development and production. The last and perhaps most vital step in the process, is the technical evaluation and acceptance of the deliverable.

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58. The technical evaluation and acceptance of deliverables is generally the responsibility of the TA who defined the requirement. This responsibility is often delegated to other staff including QARs and Technical Support Staff at Depots. Also, in special cases such as technical publications and drawings, the responsibility for acceptance of the deliverables may be delegated to other specialists who are functionally better suited to evaluate the format of the deliverables. The acceptance authority may also be delegated to on-site DND technical staff. These staff must be knowledgeable of the requirement and receive appropriate empowerment to act. They must also be furnished with copies of the contract, test reports and any other applicable documentation necessary to evaluate the compliance of the deliverable(s).

59. The submission of contracted deliverables should be monitored in accordance with the prescribed delivery schedule(s). It must be ensured that the contractor mentions any deliveries made in periodic progress reports including the dates, locations and applicable contract items (e.g. SOW paragraph or CDRL item number).

60. All QC reports associated with the deliverable(s), including Factory Acceptance Test (FAT) reports and Site Acceptance reports, should be reviewed. Any deficiencies should be noted and each deficiency should refer to a corrective action plan. Usually, but not always, the Crown is driven by limits on expenditure rather than schedule. As long as additional costs are not incurred, the TA should consider giving the contractor the opportunity to resolve any deficiencies even if the schedule is threatened. However, all corrective actions should be taken prior to accepting the items on behalf of DND, and any deviations from the contract must be negotiated, and agreed to beforehand, through the PWGSC Contract Officer.

61. All data deliverables should be evaluated to ensure that they comply with the requirements specified for quantity, type, description, content and medium.

62. The invoices submitted by the contractor should be certified to indicate that the goods have been received (or services rendered), and that there are no outstanding deficiencies for the items or work being invoiced.

63. The TA must also monitor cash flow against deliverables and the schedule. When required, advice and assistance should be sought from divisional procurement managers. It should be kept in mind that delaying or withholding payment of an invoice is a powerful incentive for contractors to deliver on time and to specification. However, to exercise this option, one must be on very sound contractual ground.

64. The TA must also ensure (where applicable) that received goods are properly catalogued into the CFSS.







MIL-STD-1521, Technical Reviews and Audits for Systems, Equipment, and Computer Software

ESMs

Life Cycle Quality Managers

Procurement Managers

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PART 14

INTERNATIONAL PROJECTS AND WORKING GROUPS

INTRODUCTION

1. Canada has been, and will continue to be, a participant in joint R&D, product development, product acquisition, and equipment support arrangements. As a result, the EMT Leader can expect to participate in, and possibly take a leading role in, a joint project or an international working group supporting a common piece of equipment. As acquisition and support budgets are constrained and the requirement to standardize equipment and doctrine among allies increases, the benefits of joint acquisition and support efforts with other nations are an attractive alternative. Operating in the international realm as part of international projects or working groups presents the EMT with the unique challenge and opportunity of representing Canadian interests.

2. The purpose of this part is to provide the EMT Leader with a general understanding of international activities and to outline some of the differences between international and purely national efforts.

GENERAL GUIDELINES

3. The opportunity to work in the international realm presents significant benefits and challenges. The chance to represent Canada and meet with counterparts from other nations is certainly one of the highlights; however, EMT members need to be constantly aware that their counterparts come from a different social, cultural, and historical context than their own. This section provides some general guidelines for the EMT member working internationally.

4. In the international realm, projects and activities are not considered military service-to-military service, but country-to-country. As a result, the EMT should expect to deal with other government departments (Department of Foreign Affairs and International Trade at a minimum) and have a greater measure of interdepartmental bureaucracy than that associated with a domestic forum.

5. When estimating the effort to be associated with an international project or forum, expect that progress will be much slower than that of a purely domestic project. International projects and Working Groups mean that multiple national government systems and bureaucracies are involved, which will churn relatively slowly.

6. Be aware that most of the work associated with international meetings is done in advance of the actual meeting. The meeting agenda needs to be developed and the position of other participants analyzed to such an extent that senior management can approve (in principle) the expected results before the formal meeting is held. It is very important that before any formal meetings occur, the EMT is well informed on what commitments can be made on behalf of Canada.

7. Expect that any problems or issues that arise during forum discussions or the conduct of a project will have to be escalated to a higher management level than similar issues with national Projects and Working Groups. Correspondingly, the EMT Leader’s ability to make time and resource commitments will likely be restricted compared to the level of authority for strictly Canadian projects. This is no reflection on the ability of the EMT, but merely a fact of doing business internationally. Since national interests are at stake and each nation is likely to have a different set of interests, what Canada may consider a trivial interest may be of vital interest to another nation. As a result, the EMT should keep superiors well informed of all activities and of any issues that arise, or are likely to arise, even trivial ones. It is very important that the EMT Leader understand the process for escalating issues and resolving disputes.

8. Ensure that all conclusions, agreements, commitments, etc. are recorded. At the close of the meeting, formally capture the results in minutes, or other appropriate format, and ensure they are either jointly approved or recommended for approval by higher authorities.

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9. Know the country and its culture. Having a general knowledge of the national culture and history facilitates cooperation and provides the EMT Leader with valuable insight into how cooperation with this nation is likely to progress. Learning and applying some of the social customs of that culture, especially those relating to the role of host and guest, will improve any required team or relationship building. Investing time to memorize simple phrases in their language (e.g. “Good morning,” “Good bye,” “Thank you,” and “How are you?”) will also stand you in good stead with your international counterpart. If you are heading up an international team, respect the national holidays and celebrations of team members. Capture this detail in the schedule and avoid international travel during these times.

10. Depending on the country, English or French may be a second language to the foreign representative. This requires that you pay careful attention to all written and oral communication. When speaking, especially on the phone, be slow and clear in your speech and use good grammar. Avoid slang, puns, and jokes, since these require an advanced knowledge of the language that the foreign representative may not have, and such attempts to “break the ice” may be considered embarrassing or insulting. If an interpreter is used, speak slowly and face the delegate being addressed – not the interpreter.

11. Take into account time zone differences. This may require changing the EMT’s working hours in order to coordinate with contacts in other countries.

INTERNATIONAL WORKING GROUPS AND COMMITTEES

INTRODUCTION

12. DND is a major participant in a variety of international groups and committees. Such groups and committees cover many disciplines including those dealing with technology sharing, military materiel management and other associated topics. Some of the groups and committees who have DND participation are:

a. NATO Working Groups;

b. American, British, Canadian and Australian (ABCA) Working Groups; and

c. Air Standardization Working Groups.

13. The range of topics considered by these groups varies greatly but typically centres on areas of common interest and cooperation such as the standardization of procedures. J7 Doctrine, Lessons Learned and Standardization (J7 DLLS) administers DND participation in these groups.

14. Some of the references that apply to participation in international working groups and committees include:

a. NDHQ Master Listing for International Programs (available from DLLS);

b. A-AD-060-000/SP-001, NDHQ Standing Operation Procedures (SOPs) for International Programs;

c. A-AD-125-000/FP-001, Defence Management System Manual (CFP 125), Chapter 10; and

d. AAP-3, Procedures for the Development, Preparation, Production and Updating of NATO Standardization Agreements (STANAGs) and Allied Publications (APs).

15. When participating in a NATO Working Group/Committee, EMT Leaders will be concerned with the development of Working Papers (WPs), STANAGs, and APs related to the development of equipment projects.

PROCEDURES

16. When appointed to an international forum, the EMT representative should be familiar with the mandate of the group or committee and review the current membership, the most recent series of proceedings, and the current agenda. If Canada had previous membership, review the Canadian files on the working group or committee. If possible, be briefed by the previous Canadian member.

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17. Arrange to be placed on the distribution list for documents generated by the applicable international committee or working group. This is done by contacting the National Defence Records and Library Services.

18. Before attending a meeting, draft a position paper that reflects the Canadian position. Circulate the position paper to Offices of Collateral Interest (OCIs) in order to arrive at an accurate and properly stated position relative to Canada’s aims and objectives. Determine the constraints that are placed on Canada’s position as well as any constraints on that of other nations. When required to prepare papers for presentation at international Working Groups, ensure that these papers properly reflect the Canadian position. Since the EMT is representing Canadian interests, and not just those of the EMT, it is vitally important that the relevant DND interest groups review and concur with the material in the paper and the presented position.

19. Official proceedings of working groups and conferences are usually published. However, background papers may also be of value. When attending conferences or meetings, try to collect background papers that are of interest.

20. Upon returning from a group meeting or conference, prepare a report on the meeting for distribution to potentially interested parties and place a copy on the master file.

21. When planning to host a conference or meeting in Canada, ensure that the authority exists and that funds are available. Funds may be required for a suitable venue, transportation, accommodation, translation, publication of proceedings, support for word processing, and other services.

22. Circulate draft publications to applicable OCIs for review, approval and ratification.

CONSIDERATIONS

23. Attendance. Once assigned to a working group, be selective about which meetings to attend. If Canada has no interest in the subject matter being presented or discussed, there is no requirement to attend. The overall objective of working internationally is to gain some benefit. There should be a well-defined product and a schedule for achieving that product. Unless something is being achieved that is of benefit to Canada, there is no need to attend the forum.

24. Custodianship. As a working group member, consider whether or not it would be beneficial for Canada to assume the custodial duties and responsibilities of international documents such as standardization agreements and allied publications.

25. Staffing. Adequate staffing of documents ensures maximum exposure to ongoing international participation. Working group representatives should maintain a list of OCIs and update that list on a regular basis. International documents should be circulated to all OCIs for comment, development of the Canadian position, or ratification of agreements.

26. Ratification and Implementation. Before submitting documents for ratification, consider the following:

a. Implications of ratification on current activities, policies and procedures;

b. Implementation process;

c. Canadian date of implementation;

d. NATO date of promulgation;

e. Canadian units affected by the implementation; and

f. Means of promulgation.

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A-AD-060-000/SP-001, Chapter 18, Hosting a Conference in Canada

A-AD-060-000/SP-001, NDHQ Standing Operation Procedures (SOPs) for International Programs

A-AD-125-000/FP-001, Defence Management System Manual, Chapter 10

AAP-3, Procedures for the Development, Preparation, Production, and Updating of NATO Standardization Agreements (STANAGS) and Allied Publications (APs)

AC/301, Handbook on Aims, Organization and Working Procedures for the Group on Standardization of Materiel and Engineering Practices

DMASP 5-3 – Standardization

J7 DLLS – NDHQ OPI

NDRLS, for distribution on International Working Group Documents

INTERNATIONAL PROJECTS

INTRODUCTION

27. Canada participates in a large number of international cooperative activities in support of government and DND/CF objectives. This participation comes in many forms ranging from membership in organizations such as NATO, North American Aerospace Defence (NORAD), ABCA and the United Nations (UN), to ongoing contact with colleagues from other nations that Canada considers friends and allies. These diverse activities, which occur under the heading of “international cooperation,” are dispersed over a number of responsibility centres. Similarly, DND seeks to foster national objectives by cooperating with and supporting Canadian industry.

BENEFITS OF INTERNATIONAL PROJECTS

28. The potential benefits to DND of cooperative activities are:

a. Improved military effectiveness through increased interoperability, standardization and training;

b. Economies in production and development;

c. Opportunities to include unique Canadian requirements during development phases;

d. Technology transfer;

e. Cost-effective life cycle management opportunities;

f. Streamlined acquisition methodologies; and

g. Shared requirement identification, analysis, and resolution.

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29. A further benefit is the support that international projects bring to Canadian industry. The defence industrial base is of great concern in that it plays an integral part of supporting the CF. In some instances, the collapse of an industrial stakeholder will seriously impede the CF’s ability to meet operational requirements. For this reason, ADM(Mat) is charged with supporting the Canadian defence industry. Clearly one of the main support mechanisms available to DND for development and maintenance of the defence industrial base is its procurement dollars. Procurement dollars spent on international projects and programs involving industry have the potential to be leveraged to meet national Canadian objectives. These objectives are: firstly, to develop and maintain the industries we need to support operational requirements; and secondly, to pursue other national objectives designed to enhance Canada’s international competitive, social and economic standing.

30. While the benefits are substantial (particularly in an era of rapidly evolving technologies, limited budgets, multi-purpose military forces and multi-facetted threats), the complexity of participating in an international program cannot be overstated. It must be recognized that the ability to control the progress and outcome of an international program is less than what would be considered typical for a national program. Political sensitivities in the international relationship must be taken into account when preparing a strategy on how, when, to what extent, and with what vigour industrial goals should be pursued in various Working Groups. In our more established relationships, DND has solid experience in introducing industry-related interventions.

RISKS OF INTERNATIONAL PROJECTS

31. Although there are potential benefits from international cooperation, international projects generally provide a higher degree of risk than domestic projects. By operating internationally, the number of external influences increases while reducing the degree to which Canada can control or mitigate individual risk items. External events unrelated to the project (such as significant changes in currency exchange rates or a political position taken by a foreign government) have the potential to impact not only the project’s viability but also the state of relations between Canada and other nations. As a result, it is important to expand the scope of risk management to include social, political, and economic factors not normally associated with domestic projects. These factors need to be assessed constantly and mitigation/contingency strategies formulated.

PROJECT CATEGORIES

32. Projects that DND pursues on behalf of the Government of Canada fall into three categories. These are defined in terms of the deliverables to DND/CF and Canada:

a. Activities whereby goods, services or equipment are acquired for the specific use of the CF;

b. Activities that assist in solving a DND problem or satisfying a requirement; and

c. Other activities that satisfy a corporate or policy-based objective, which is nevertheless in DND interests, or is best pursued by DND on behalf of the Canadian Government.

GUIDANCE FOR INTERNATIONAL PROJECTS

33. General Guidance. Several considerations need to be taken into account before committing to participate in a particular international activity. There must be an easily understood business case to demonstrate that this is the best available and most cost-effective solution to a Canadian, DND or CF problem. When an international cooperative solution is requirements-driven, the objective is expected to be seeking additional and/or better equipment options or a more cost-effective acquisition methodology. When an international cooperative solution is R&D driven, there is normally an effort to pool knowledge in order to maximize the total information available to be applied to a requirement or capability deficiency. This could evolve into an actual development program as a result of the participants’ sharing information.

34. Sponsors and EMT Leaders should remain aware of the requirement for early senior management involvement, as well as the advice and guidance available from other staffs within NDHQ. At no time should international activities be initiated without at least consultation and advice from Director General International and Industry Programs (DGIIP). On assignment to a group that may deal with international materiel cooperation, EMT Leaders must work to develop contacts within ADM(Mat) (e.g. DGIIP, Director Quality Assurance – DQA) and across other groups like ADM(Pol), Judge Advocate General (JAG) [e.g. DLaw 1] and the Environmental Chiefs of Staff (ECS) staff.

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35. NATO places a great deal of emphasis on cooperation between nations. Canadian policy is to try to encourage various staffs to view the cooperative approach as a useful means of providing needed capabilities in a way that is no less cost-effective than other means. The fact that less tangible benefits can also result from an international project (such as the satisfaction of a policy objective or the creation of an industrial opportunity) is merely additional rationale to choose the international approach to satisfy the requirement. The relative merits of cooperation – namely, because it is a useful way to satisfy a requirement and other benefits – must remain clear throughout an international project.

36. Legal Aspects. Resource and legal questions are the most prominent issues in an international cooperative program or activity. International projects and activities almost always involve the development and signing of Memoranda of Understanding (MOUs). Accordingly, DLaw I should be consulted on all international issues.

37. If an existing mechanism for cooperation is not available, advice on the modalities of prosecuting a new agreement may be sought. For the most part, the vehicle of choice for such a purpose is the MOU. While not overly difficult to initiate, there are a number of important caveats that should be brought to the attention of any potential DND sponsor before this process is begun. In this respect, DND’s financial, legal (including DLaw 1) and ADM(Mat) representatives must ensure that a consistent, coordinated approach is adopted. Assistance sought at the preliminary stages of deliberations on whether to pursue participation in a cooperative project can save a significant amount of time, personnel and financial resources, and help ensure that the final agreement is consistent with overall DND objectives.

38. An MOU may be established to cover any one of a variety of joint endeavours including cooperative research, cooperative shared development, information exchange, materiel acquisition and logistic support. MOUs:

a. Are signed written records of understanding, between Canada, or DND on its behalf, and another international participant or participants (such as the armed forces of another country, departments of foreign governments, or an international organization [NATO or the UN], or one of their agencies);

b. Describe arrangements or undertake commitments concerning the allocation and use of national or DND resources; and

c. Can also propose using the resources of the non-Canadian participants in a project, program or undertaking in Canada.

39. Projects should have MOUs that clearly define the agreed Canadian resource limits in kind, in amount, and in time.

40. Beyond the front-end assistance offered, ADM(Mat) representatives may take a role to help resolve issues in dispute during the implementation phase of the activity. This often centres on problems linked to US foreign disclosure rules and the application of regulatory controls affecting technology transfer.

41. Authority. Remember that:

a. No commitment of resources may be made toward any project until the project has been identified in the divisional/group business plan;

b. No commitment of resources may be made toward the definition phase of any project until the SS(PPA) has been approved, giving approval in principle to the project as a whole, along with the identification of the required share of the definition phase funding;

c. No commitment of resources may be made toward the implementation phase of a project until SS(EPA) has been granted; and

d. Once a DSP decision is taken, the most commonly used vehicle for activation of an international project or activity is an MOU.

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42. While there is not a single departmental authority interested in identifying or pursuing specific international materiel cooperation opportunities, it is absolutely clear that ADM(Mat) is responsible for the overall conduct of international materiel cooperation.

43. Generally, an international effort has a greater chance of support, approval, and success if there is a demonstrable link to savings DND will achieve if it cooperates. Savings can take many forms. Some examples are:

a. A direct reduction in resource costs (less money, fewer people, less time/effort to develop, etc.) to DND resulting from the cooperative effort;

b. A deferred direct cost to DND;

c. An implicit (or indirect) cost reduction to DND, such as if Canadian industry wins an international project and overhead is spread over a greater number of production units for a specific piece of capital equipment. Also, royalties paid to DND on the sale of items to third parties; and

d. A reduced need to spend intellectual capital (shared policy, doctrinal, training development).

44. ADM(Mat)/DGIIP has a good record of managing issues, while adopting a Government of Canada approach, and needs to be consulted prior to developing an approach covering international representation of industry interests.

CHARACTER OF INTERNATIONAL PROJECTS

45. There is a risk, amply demonstrated by historical experience, of being captured by an international activity that does not live up to its promise, or results in substantial cost and time escalations relative to what had been forecasted.

46. International activity milestones seldom coincide precisely, either in time or in substance, with the steps or stages normally planned for DND/CF projects. DND/CF must remain flexible and be prepared to compromise.

47. When compared with national projects, expect a higher level of approval authority to be sought for each decision. PMB will be involved in international projects regardless of the dollar amount. Expect that the EMT Leader will not have the equipment authority normally associated with the position and will regularly have to seek higher authority for decisions and for the resolution of minor project difficulties. The EMT Leader must understand the process for escalating issues and resolving disputes. The use of direct communication between ADM(Mat), as Canada’s National Armaments Director, and his international counterparts is a useful technique to contain or resolve issues (especially cost-related ones).

48. The normal provisions and requirements of cost control must be emphasized in the case of an international project. Any delays in addressing project difficulties may exacerbate the problem. A delay in seeking a decision on project changes or cost increases can result, in an extreme case, in others assuming that Canada had accepted the obligations resulting from such changes before senior management has had the opportunity to review the issue and make a decision. The project authorities should be expected to take all possible action necessary to maintain cost control and to engage the Senior Review Board (SRB) should such measures prove to be less than fully effective.

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DAODs 7014-0, 7014-1 (MOU)

NATO Guidance Manual for Cooperative Program Arrangements, NATO STANAG AACP-1, AACP-2

ADM (Pol)

D Fin Ops

DGIIP

DIP

DLaw 1

DLaw 1 – MOU Coordinator

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LIST OF ABBREVIATIONS

ABCA American, British Canadian, and Australian

ACD Allocated Configuration Documentation

ACM Ammunition Commodity Manager

ACMP (NATO) Allied Configuration Management Publication

ACRO Advisory Committee on Repair and Overhaul

ADM(Fin CS) Assistant Deputy Minister (Finance and Corporate Services)

ADM(HR-Mil) Assistant Deputy Minister (Human Resources – Military)

ADM(IE) Assistant Deputy Minister (Infrastructure and Environment)

ADM(IM) Assistant Deputy Minister (Information Management)

ADM(Mat) Assistant Deputy Minister (Materiel)

ADM(S&T) Assistant Deputy Minister (Science and Technology)

AECB Atomic Energy Control Board

AETE Aerospace Engineering Test Establishment

ALARA As Low As Reasonably Achievable

AQAP (NATO) Allied Quality Assurance Publications

ARG Acquisition Reform Guide

ASW Anti-submarine Warfare

ATE Automatic Test Equipment

ATESS Aerospace and Telecommunications Engineering Support Squadron

BDP Benefits Driven Procurement

BMT Business Management Team

BOC Brought on Charge

BOD Board of Directors

BOM Bill of Material

C/SPMS Cost/Schedule Performance Measurement Standard

C2IS Command, Control and Information Systems

CA Configuration Audit

CACR Cataloguing Advice and Confirmation Request

CADC Crown Assets Distribution Centre

CAR Consolidated Area Repository

CAS Chief of the Air Staff

CBR Chemical, Biological and Radiological

CC Capability Component

CCB Configuration Control Board

CDRL Contract Data Requirements List

CDS Chief of the Defence Staff

CEAA Canadian Environmental Assessment Act

CEPA Canadian Environmental Protection Act

CF Canadian Forces

CFAO Canadian Forces Administrative Order

CFMETR Canadian Forces Maritime Experimental and Test Ranges

CFMO Canadian Forces Medical Order

CFNA Canadian Forces Northern Area

CFQAR Canadian Forces Quality Assurance Region

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CFS Computers for Schools

CFSS Canadian Forces Supply System

CFSSU Canadian Forces Supply System Upgrade

CFTO Canadian Forces Technical Order

CGCM Canadian Government Catalogue of Materiel

CGCS Canadian Government Cataloguing System

CGSB Canadian General Standards Board

CI Configuration Item

CID Capability Initiatives Database

CLS Chief of the Land Staff

CM Configuration Management

CMISS Consolidated Maintenance Information System – Ship

CMO Configuration Management Organization

CMP Configuration Management Plan

CMS Chief of the Maritime Staff

COLOG Cooperative Logistics

CONOPS Concept of Operations

COTS Commercial Off-The-Shelf

CSCI Computer Software Configuration Item

CSG Canadian Support Group

CTAT Controlled Technology Access Transfer

DAEBM Director Aerospace Engineering Business Management

DAOD Defence Administrative Orders and Directives

DAPM Director Ammunition Program Management

DCDS Deputy Chief of the Defence Staff

DCPS Director Common Procurement and Supply

DDSAL Director Disposals, Sales, Artefacts and Loans

D Env P Director Environmental Protection

D Env S Directorate of Environmental Stewardship

DFAIT Department of Foreign Affairs and International Trade

DFPPC Director Forces Planning and Program Coordination

DFSCEPM Director Field Support and Common Equipment Program Management

DG Director General

DGAEPM Director General Aerospace Equipment Program Management

DGEPS Director General Equipment Program Services

DGIIP Director General International and Industry Programs

DGLEPM Director General Land Equipment Program Management

DGMEPM Director General Maritime Equipment Program Management

DGNS Director General Nuclear Safety

DGSP Director General Strategic Planning

DID Data Item Description

DISR Detailed Item Status Report

DLaw Director of Law

LIST OF ABBREVIATIONS (Cont)

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DLERM Director Land Equipment Resources Management

DLESS Director Land Engineering Specialist Services

DM Deputy Minister

DMAC Director Managerial Accounting and Comptrollership

DMASP Director Materiel Acquisition and Support Programme

DMCM Director Maritime Class Management

D Med Svcs Director Medical Services

DMGMC Director Materiel Group Management Coordination

DMMD Director Materiel Management and Distribution

DMMS Director Material Management Services

DMMS Director Maritime Management and Support

DMPPD Director Maritime Policy and Project Development

DMS Defence Management System

DMSS Director Maritime Ship Support

DND Department of National Defence

DNSC Director Nuclear Safety Compliance

DoD (US) Department of Defense

DODISS Department of Defense Index of Specifications and Standards

DPA Discounted Payback Analysis

DPG Defence Planning Guidance

DQA Director Quality Assurance

DRDC Defence Research and Development Canada

DRRB Data Requirements Review Board

DSP Defence Services Program

DSRO Director Supply Resources and Operations

DSS Decision Support System

DSSPM Director Soldier Systems Program Management

DTA Directorate Technical Airworthiness

DTICS Director Technical Information and Codification Services

DTM Director Transportation and Movements

DTSES Director Telecommunications and Spectrum Engineering Support

E&M Engineering and Maintenance

E&S Engineering and Support

E&SMP Engineering and Support Management Plan

EAC Equipment Application Code

EAP Environmental Assessment Panel

EARP Environmental Assessment and Review Process

EBS Equipment Breakdown Structure

ECC Equipment Configuration Code

ECL Equipment Check List

ECN Engineering Change Notice

ECP Engineering Change Proposal

ECS Environmental Chiefs of Staff

EID Equipment Identification Documentation

EIF Equipment Information File

EIS Environmental Impact Statement


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ELD Equipment Logistics Directive

EM Electromagnetic

EMIS Equipment Management Information System

EMP Electromagnetic Pulse

EMPP Electromagnetic Pulse Protection

EMS Expenditure Management System

EMT Equipment Management Team

EO Electro-optical

EOQ Economic Order Quantities

EPA Effective Project Approval

EPM Electronic Protection Measures

EPP Equipment Program Plan

ERN Equipment Registration Number

ESD Electrostatic Discharge

ESL Equipment Support List

ESM Electronic Support Measures

ESP Equipment Support Plan

ETE Engineering and Test Establishment

EW Electronic Warfare

FAA Financial Administration Act

FBS Functional Breakdown Structure

FCA Functional Configuration Audit

FCD Functional Configuration Documentation

FMA Failure Mode Analysis

FMAS Financial Management Accounting System

FMECA Failure Modes, Effects and Criticality Analysis

FMF Fleet Maintenance Facility

FMS Foreign Military Sales

FSR Field Service Representative

FTE Full Time Equivalent

GFE Government Furnished Equipment

GFOS Government Furnished Overhaul Spares

GIDEP Government Industry Data Exchange Program

GPTE General Purpose Test Equipment

GQA Government Quality Assurance

GSM Government Supplied Material

HERF Hazard of Electromagnetic Radiation to Fuel

HERO Hazard from Electromagnetic Radiation to Ordnance

HERP Hazard of Electromagnetic Radiation to Personnel

HFE Human Factors Engineering

HOA Higher Order Assembly

HR Human Resources

HRMS Human Resources Management System

HWCI Hardware Configuration Item

ICWG Interface Control Working Group

ID Identification

IETM Interactive Electronic Technical Manual

IKM Information and Knowledge Management

ILS Integrated Logistics Support

ILSP Integrated Logistics Support Plan


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IO Information Operations

IPC Initial Provisioning Conference

IS Information Systems

ISPL Interim Spare Parts List

IT Information Technology

ITAR International Traffic in Arms Regulation

ITT Invitation to Tender

IV&V Independent Verification and Validation

JAG Judge Advocate General

KPI Key Performance Indicator

LCC Life Cycle Cost

LCM Life Cycle Management

LCMM Life Cycle Materiel Management

LCMS Life Cycle Management System

LCQM Life Cycle Quality Manager

LLTI Long Lead Time Item

LPO Local Purchase Order

LRU Line Replacement Unit

LSA Logistics Support Analysis

LSAR Logistics Support Analysis Record

LST Life Support Technologies

LTCP Long Term Capital Plan

LTCP(C) Long Term Capital Plan (Construction)

LTCP(E) Long Term Capital Plan (Equipment)

LTCP(IM) Long Term Capital Plan (Information Management)

M&S Modelling and Simulation

MA&S Materiel Acquisition and Support

MARCORD Maritime Command Orders

MARLANT Maritime Forces Atlantic

MARPAC Maritime Forces Pacific

MASIS Materiel Acquisition and Support Information System

MCM Mine Countermeasures

MCN Materiel Change Notice

MCP Major Crown Project

MDB Master Database

MEMDI DGMEPM Divisional Instruction

MGI Materiel Group Instruction

MHP Maritime Helicopter Project

MMI Materiel Management Instruction

MMIS Maintenance Management Information System

MMR Materiel Master Record

MND Minister of National Defence

MOU Memorandum of Understanding

MR Miscellaneous Requirement

MRL Materiel Requirements Listing

MRP Mobile Repair Party

MRR Miscellaneous Recurring Requirements

MSDS Material Safety Data Sheet

MSE Management System Evaluation

MSL Maximum Stock Level

MTA Maintenance Task Analysis

MTBF Mean Time Between Failure

MTTR Mean Time To Repair


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NAC National Archives of Canada

NATO North Atlantic Treaty Organization

NDHQ National Defence Headquarters

NDID National Defence Index of Documentation

NDLCC National Defence Logistics Coordination Centre

NDRLS National Defence Records and Library Services

NETE Naval Engineering and Test Establishment

NICP National Inventory Control Point

NISO National Individual Standing Offer

NMIMS National Materiel Information Management System

NOHD Nominal Ocular Hazard Distance

NOR Notice of Revision

NORAD North American Aerospace Defense

NP National Procurement

NQA National Quality Authority

NSN NATO Stock Number

NSOD Nuclear Safety Orders and Directives

O&M Operations and Maintenance

OCI Office of Collateral Interest

OGD Other Government Departments

OPI Office of Primary Interest

OTS Off-the-Shelf

OWSS Optimized Weapons System Support

P&A Price and Availability

PAS Publication Authorship Service

PCA Physical Configuration Audit

PCD Product Configuration Documentation

PCR Project Completion Report

PD Project Director

PDR Preliminary Design Review

PEL Permissible Exposure Level

PFC Pre-Facilitated Contracting

PHS&T Packaging, Handling, Storage and Transportability

PIF Pre-installation Failure

PIH Physical Item Hierarchy

PM Project Manager

PMB Program Management Board

PMBOK Project Management Body of Knowledge

PMI Project Management Institute

PMO Project Management Office

PMP Project Management Plan

PO&M Personnel, Operations and Maintenance

POL Petroleum, Oils, and Lubricants

POMV Privately Owned Motor Vehicle

PPA Preliminary Project Approval

PPMS Project Performance Management Standard

PPRA Project Profile and Risk Assessment

PRAS Planning, Reporting, and Accountability Structure

PRC Procurement Review Committee


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PRS Permissive Repair Schedule

PSC Procurement Strategy Committee

PSCN Permanent System Control Number

PWGSC Public Works and Government Services Canada

QA Quality Assurance

QAA Quality Assurance Authority

QAIS Quality Assurance Information System

QAM Quality Assurance Manager

QAR Quality Assurance Representative

QATL Quality Assurance Team Leader

QC Quality Control

QETE Quality Engineering and Test Establishment

QML Quality Manufacturers List

QMS Quality Management System

QPL Qualified Products List

QSR Quality System Requirement

R&D Research and Development

R & O Repair and Overhaul

RADHAZ Radiation Hazard

RCM Reliability Centred Maintenance

RCMA Reliability Centred Maintenance Analysis

RDMS Relational Database Management System

RF Radio Frequency

RFD Request for Deviation

RFP Request for Proposal

RFQ Request for Quotation

RFR Radio Frequency Radiation

RFSA Request for Supply Arrangement

RFW Request for Waiver

RGS Request for Goods and Services

RISO Regional Individual Standing Offer

RMR Repairable Materiel Request

RSPL Recommended Spare Parts List

RTD Relevant Technical Data

S&T Science and Technology

SACC Standard Acquisition Clauses and Conditions

SBS System Breakdown Structure

SCHC Storage Characteristics Handling Codes

SCIP Strategic Capabilities Investment Plan

SCN Specification Change Notice

SEBA Synthetic Environment Based Acquisition

SECO Synthetic Environment Coordination Office

SEM Systems Engineering Manager

SERDC System Excess Report Disposal Certificate

SESR System Excess Summary Report

SEV Special Equipment Vehicle

SEWG Synthetic Environment Working Group

SGML Standard Generalized Mark-up Language

SHC Stockholding Code


A-LP-005-000/AG-008

LA-8

SI International System

SIA Supply Information Advice

SLA Service Level Agreement

SLC Shelf Life Code

SM Supply Manager

SMARRT Simulation and Modelling for Acquisition, Requirements, Rehearsal and Training

SMC Ship Management Committee

SMCR System Manual Computations Reports

SMWG Ship Management Working Group

SOR Statement of Requirement

SOW Statement of Work

SPAC Senior Project Advisory Committee

SPT Special Production Tooling

SPTD Supplementary Provisioning Technical Documentation

SRB Senior Review Board

SRCL Security Requirements Check List

SRT Standard Repair Time

SS Synopsis Sheet

SST Support Services Team

STANAG (NATO) Standardization Agreements

STE Special Test Equipment

T&E Test and Evaluation

TA Technical Authority

TAC Translation Accuracy Check

TD Torpedo Defence

TDAN Technical Data Action Notice

TDM Technical Data Management

TDMP Technical Data Management Plan

TDMS Technical Data Management System

TDP Technical Data Package

TEMS Technical Engineering and Maintenance Services

TF Task Force

TFR Technical Field Representative

TIL Technical in Lieu

TIS Technology Investment Strategy

TLD Thermoluminescence Dosimetry

TPP Total Package Procurement

T&Cs Terms and Conditions

TSR Technical Services Representative

UCR Unsatisfactory Condition Report

UWW Underwater Warfare

VCDS Vice Chief of the Defence Staff

VV&A Verification, Validation, and Accreditation

WBS Work Breakdown Structure

WHMIS Workplace Hazardous Material Information System

WP Working Paper

WSM Weapons System Manager

WSSP Weapons Systems Support Plan

YFR Yearly Flying Rate


EMT DND Handbook

Documents

Transcript of EMT DND Handbook