Issues Provider Enterprise Fleet Readiness Enterprise Navy Enterprise ExComm Navy Enterprise...

Issues

ProviderEnterprise

FleetReadiness Enterprise

Navy EnterpriseExComm

Navy Enterprise

Collaboration

Navy Enterprise Framework

APEX ORIENTATION PROGRAM

Mr. Pat Tamburrino, Jr.ADCNO (Fleet Readiness and Logistics)8 Mar 07

Issues

ProviderEnterprise



Navy Enterprise

Collaboration Discussion Topics

• Why a Navy Enterprise framework?• Short Enterprise history• Navy Enterprise ExComm • Echelon II Provider briefs

– Round One baselining– Next steps

•Provider Enterprise•Round Two guidance

• Provider data template• Questions

Issues

ProviderEnterprise



Navy Enterprise

Collaboration Bottom Line Up Front

• Navy Enterprise is about maximizing our buying power while maintaining our dominate warfighting edge today and deliver the fleet of tomorrow.

• Collaborative teaming of the right decision makers, meeting on a regular drumbeat, to facilitate best decisions.

• Processes are metrics driven and linked to outputs.

Improving the Business end of our Business

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

0

1

2

3

4

5

6

7

1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016

Pe

rce

nt

(%)

of

GD

P

Defense SSN Medicare/cade

Current Budget Forecast

Major Entitlements and Defense (with respect to % of GDP)

Historical Forecast

Defense forecasted to receive less as entitlements growDefense forecasted to receive less as entitlements grow

Source: CBO – Aug 06

Medical

Social Security

Defense

Source: CBO

Issues

ProviderEnterprise



Navy Enterprise

Collaboration Why change or transform?

• Employ a new business model based on measurable outputs, processes, the right metrics, and accountability.

• Develop a deep understanding of requirement.

• Demand total transparency

• Drive more effective collaboration.

• Reduce costs and eliminate non-value added spending.

• Hold people accountable to deliver to a set entitlement (and no more), measure gaps-to-entitlement, and ask “why.”

Vertical / Stove-Piped

Matrix Organization

Issues

ProviderEnterprise



Navy Enterprise

Collaboration Bit of History: An Enterprise Model

Inception of Naval Aviation Enterprise (NAE)1998 to 2003 Precipitating events: Pilot production

shortfall, TF-34 engine shortfall, Flying Hour Program challenges, non-deployed readiness indicators

… led to ...2003: Naval AViation Readiness Improvement

Program (NAVRIIP) … which led to …

FLEETSFDM

REQUIREMENTSSingle Process Owner

PROVIDING ORGANIZATIONS

RESOURCES

FLEETSFDM

REQUIREMENTSSingle Process Owner

PROVIDING ORGANIZATIONS

RESOURCES

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

NAE SWE USE NNFE NECE

Five Warfare Enterprises

• Senior TYCOM leads each Warfare Enterprise• Governed by Fleet Forces Command’s Fleet Readiness Enterprise (FRE)• Focus on delivery of Current Readiness at Cost to COCOMs

CFFC’s FRE

Naval

Aviation

Surface

Warfare

Under Sea

Networks

Exp Warfare

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

UNSECNAV

Output: Current

Readiness at Cost

Outputs:1) Future Capability***

at Cost2) Support of

Current Readinessat Cost

ProviderEnterprise


Warfare Enterprises


CNO

Providers ResourceSponsors

* Other ASNs as necessary

** CPF as necessary

*** Includes both modernization and new assets

Navy Enterprise Governance

N8/ FMC

OPNAV N8/6/4/1TYCOMsOPNAV

N8/6/4/1Providers

VCNO/RDA

ASNs*CFFC/CPF

CFFC**VCNO/RDA*

NE EXCOMM

Issues

ProviderEnterprise



Navy Enterprise

Collaboration NE Matrix Operating Model

Future

Capabilit

y

Future

Capabilit

y

NNFENAE

USENECE

SWE

CNIC

NAVSUP

ONR

NAVSEA/PEOs/SP

NAVAIR/PEOs

SPAWAR/PEOs

BUMED

NAVFAC/PEO

MPT&E

PROVIDER ENTERPRISE(Supporting Warfare Enterprises)

FLEET READINESS ENTERPRISE (Delivering Readiness to COCOMs)

Current ReadinessCurrent Readiness

VCNO/RDA*leadership

VCNO/RDA*leadership

CUSFFC/CPFleadership

CUSFFC/CPFleadership

*Other ASNs as necessary

Future Capability =Modern + Recap

Issues

ProviderEnterprise



Navy Enterprise

Collaboration Operating in the Navy Enterprise

Inputs

Temporal metrics– Effectiveness– Efficiency

Prioritized top issues & barriers

Project/program status

Barrier removal Balance of

current readiness and future capability

Improved guidance

Resource allocation

Risk apportionment

Agile, integrated decisions

Supports

Outputs

NNFENAE

USENECE

SWE

Current Readiness

CNIC

NAVSUP

ONR

NAVSEA/PEOs/SP

NAVAIR/PEOs

SPAWAR/PEOs

BUMED

NAVFAC

MPT&E

Current Readiness Future

Capabilit

y

Enterprise Activities and Behaviors

ProviderEnterprise



Issues

Collaboration

Issues

ProviderEnterprise



Navy Enterprise

CollaborationRound One Echelon II

Echelon II Brief Sked

14 Aug, NAVAIR - (VCNO, ASN(RD&A)) – Pax River, MD

20 Sep, NAVSUP - (VCNO, ASN(RD&A)) – Mechanicsburg, PA

17 Oct, CNIC - (VCNO, ASN(I&E)) – Wash, DC

19 Oct, ONR - (VCNO, ASN(RD&A)) – Wash, DC

02 Nov, SPAWAR - (VCNO, ASN((RD&A)) – San Diego, CA

09 Nov, NAVSEA - (VCNO, ASN(RD&A)) – Wash, DC

16 Nov, NAVFAC - (VCNO, ASN(I&E)) – Wash, DC

01 Dec, MPT&E - (VCNO, ASN (M&RA)) – Wash, DC

13 Dec, NAVSUP - (VCNO, ASN(RD&A)) – Wash, DC

24 Jan Health Care – (VCNO, ASN (M&RA) – Wash, DC

05 Feb CFFC/FRE – (VCNO) – Wash,DC

• 13 Mar, Naval Intelligence – (VCNO, ASN(RD&A) – Wash, DC

• Baselining and “ownership” of People, Dollars and Stuff• Supported/supporting relationships • Output metrics

Issues

ProviderEnterprise



Navy Enterprise

Collaboration NAVSUP Value Chain

Appropriated NWCF-SM

$4.5BFY06 Obligations

$ .4 B

Reimbursable$.4B

NAVSUP Total Resources $5.3B

58 Products & Services

58 Products & Services

People (P)- 9,911Dollars (D)- $5.3B

Stuff (S)- $21.2B(Excludes NEXCOM and Non-Navy)

MPT&E

SUPPORTERS & ENABLERS

DON AT&L**

NAVSUP

Health Care

Science & Tech

(S&T)

Installations

3,260 2,608 652 26 35$3,480M $792.6M $220.9M $17.2M $8.1M

$15,774M $3,097M $1,937M $350M $.1M

NAE SWE NNFEUSE NECE

X X X X XXX

X

XX

34

Material Support Quality of Service

Allowance Production & Maintenance

ContractingContracting – ITContracting-AmmoEnterprise Resource PlanningContingency ContractingProgram OversightSocio-Economic Program Coordination

Plant & Minor Property Prog. Mgmt ServicesGlobal Integr Supply Chain Mgmt (GISCM)Global Transportation CoordinationHAZMAT/CHRIMPOcean Terminal ServicesProgram Mgmt Services-Total Asset VisibilityRequisition ServicesStrategic DistributionSupply Automated Systems MgmtSupply Chain AmmunitionTransportation ServicesWarehousingFuel ServicesNaval Logistics Library ManagementPrice Fighter

DLA 339 ProcessingFMS Case ManagementInformation Services- FMSInformation Services- DOD

Logistics Support Services Field Contracting Oversight (External)Policy and Guidance – Afloat SupplyPolicy and Guidance – OrdnancePolicy and Guidance – TransportationFleet Card Program Management ServicesPurchase Card Management/OversightCommon Access Card Management Services

Information Services -Non-NAVSUP Navy

Logistics Operations Joint Environmental Mgmt Services Program Mgmt ServicesStrategic DistributionIntegrated Logistics SupportISSOTJoint Plans & ExercisesMaterial Management ServicesNaval Bulk PetroleumPollution PreventionProgram Mgmt Services – AITStrategic Sourcing SupportSupply System InnovationTransportation AssistanceWaterfront Ammunitions Support Services

Mail ServicesATMs At-Sea Policy and GuidanceHousehold Goods ServicesHHG Policy & GuidanceFood Service Policy & GuidanceDisbursing Policy & GuidanceTravel Card Management

Allowancing

Contracting

GISCM

Logistics Policy & Oversight

Information Services

Integrated Logistics

Quality of Life

Non-Navy Support

58 NAVSUP Products & Services (P&S) by Product Line

Supply Chain Management Integrated Support to Operating Forces

NEXCOM

Navy ExchangeOperations

Non-NavyP- 476D-$370.5MS- $ 245M

NEXCOMP- 14,983D-$3.2B SalesS-$435M

34

$4.043B $0.024B$0.064B$0.430B$0.160B $0.542B

Navy Supply Systems Command$5.3B

$0

.05

1 B

C

on

tra

cts

NAVICP NAVSISA COMFISCS NOLSC NEXCOMOther FunctionsNavy BillsNon-Navy Support

PrivateIndustry

Total Funds

6

Issues

ProviderEnterprise



Navy Enterprise

Collaboration Wrap Up

ExComm focus areas

• Provider Enterprise maturation– Metrics, top-level processes

• Financial Management • Appropriate Program Reviews

– Linked to SecNav’s SMR process– Strategic ExComm issues

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

Back Ups

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

Proposed NE ExComm Topics Selection Process

Criteria Related to NE objectives

–Maintain current readiness–Increase buying power–Improve decision-making–Change culture and behaviors

Top-level issue Requires ExComm collaborative

forum

Prioritize &Sequence

(DNS/N09X)

Criteria Relative importance to

the enterprise Required time to brief Readiness to brief

Yes

No

Prioritize &Sequence

(DNS)

• Decisions• Guidance• Feedback


ProviderEnterprise

Navy Enterprise

Sources of topics

VCNO/ASN-RDA

N8/ASN-FM

CNO/USECNAV

DNS/N09X

CFFC/CPF

Staffs

Screen(DNS/N09X)

Other Forums

If outcome of Other Forum meeting is to consider topic for ExComm


NEExComm

Issue?

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

Appropriated NWCF-SM

$4.5BFY06 Obligations

$ .4 BReimbursable$.4B

NAVSUP Total Resources $5.3B

16

People: 9,911 Dollars: $5.3B Stuff: $21.2B

NAVSUP Baseline: People, $$, Stuff

Total Funds

NAE SWE NNFEUSE NECE

P-

D-

S-

P-

D-

S-

P--

D-

S-

P-

D-

S-

P-

D-

S-

MPT&E

SUPPORTERS & ENABLERS

Health Care

Science & Tech

(S&T)

X

X

X

Installations

P-D-S-

P-D-S-

P-D-S-P-D-S-

117

1,292

6

$0

$0

$10M

$0

0$0

$.5M

$132.7M

$87.1M

3,350 2,678 670 10 29. $803.4M $221.6M $16.8M $7.8M

$14,824M $2,949M $1,933M $350M $23M

X

P-D-S-

1,759

$1,070M$606M

DON AT&L**

NAVSUP$3,439M

*Reconciling w/ PR09 Mapping

*

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

Proposed FY07 NE Plan of Action

Develop and chop ExComm Charter

Develop and implement ExComm management process

Begin regular drumbeat of meetings

Begin design of integrated governance

Approve NE objectives Design and stand up Enterprise

metrics IPT

Agree on problem(s), NE vision, and objectives

Agree on NE framework

Align stakeholders Begin

communications

Publish and promulgate post- ExComm offsite FY07 modified construct

Stand up SES PE Advisory Group

Identify PE and FRE high priority issues (DNS tasker)

Hold Intel EII brief Socialize addition of SPECWAR

with SPECWARCOM Begin design of PE governance Begin development of guidance

for next round of EII briefs

Select ExComm topics and promulgate ExComm schedule

Approve and implement NE governance charters (ExComm w/FRE and PE)

Establish metrics linked to objectives

Measure baselines for those that haven’t been measured

Develop draft guidance for PE and FRE metrics

Identify barriers

Identify possible changes to matrix construct

Decide if and when to add SPECWAR

Finalize PE governance and link with ExComm and FRE governance

Hold initial meetings of PE governance bodies

Promulgate guidance and schedule for next round of EII briefs

Begin to design guidance for performance agreements and metrics linked to NE metrics

Establish and approve targets relative to all objectives

Factor into FY08 CNO Guidance Begin to remove barriers

Finalize possible changes to matrix construct and socialize

Fully stand up PE governance body and establish regular drumbeat of meetings

Finalize and promulgate guidance for performance agreements and linked metrics

Assist enterprises & domains with metrics development

Begin to review FRE and PE EII POA&Ms (through EII briefs)

Measure progress to targets

Begin socialization with USMC

Publish FY08 matrix construct

Mature process for FRE/PE issue and/or barrier escalation

Monitor progress of enterprises & domains

Finalize and approve NE story-line

Develop and begin implementing strategic communications plan

Begin regular comms drumbeat

Review results of measurement baselines related to decision-making, culture, and behaviors

Continue comms drumbeat

Establish targets for decision-making, culture, and behaviors

Measure gaps Develop integrated Change

Management plan Continue comms drumbeat Measure comms effectiveness

Begin implementing change management plan

Develop FY08 comm plan

Continue comms drumbeat

NE ExComm

Oct 07Nov 06 Dec 06 Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 July 07 Aug 07 Sep 07

Strategic Management

Matrix Management

Change Management

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

Revised NE Story Line & Lexicon Alignment

Why We Need Navy Enterprise

What It Is What it Gives UsActivities (within FRE and PE) Baseline people, $$, and stuff Understand entitlements Identify main processes and outputs Determine how to measure outputs Determine best-in-class level of output

for main processes given entitlements Agree on what Fleet needs and no more Measure output relative to agreed upon

level of performance– If over-delivering, reduce output

and return money saved– If delivering, determine how to

further improve productivity and establish targets

– If under-delivering, determine root causes and improve

Execute Measure and report progress

Behaviors Be open to new

ideas Collaborate Be committed

Seek help Be accountable Reward good

e-behavior Openly

communicate

Navy can’t achieve objectives with steady

or decreasing TOA

Navy Enterprise (NE) Framework

“NE Main Thing”Increase buying power

while maintaining current readiness and

operations effectiveness

• Overmatching combat power

• Maritime dominance

Strategic Vision

NE Objectives

Burning Platform Approach

CNO Priorities

Readiness andwarfighting operations

Fleet of the future

21st century leaders

Increase buying power

Maintain current readiness levels and ops. effectiveness

Improve quality of Enterprise decisions

Change culture and behaviors

1New Enterprise

Governance

2

Measurable improvements in:

– Cost-wise readiness

– Buying power

– Quality of Enterprise decisions

– Culture and behaviors

Other qualitative benefits:

– Improved policy and guidance (over time)

– Better organizational alignment with strategy

– Improved transparency

– Improved agility

Matrix OperatingModel

NNFENAE

USENECE

SWE

Current Readiness

CNIC

NAVSUP

ONR

NAVSEA/PEOs/SP

NAVAIR/PEOs

SPAWAR/PEOs

BUMED

NAVFAC

MPT&E


Capabilit

y


ProviderEnterprise

NavyEnterpriseExComm

FleetReadinessEnterprise

Issues

Collaboration

NNFENAE

USENECE

SWE

Current Readiness

CNIC

NAVSUP

ONR

NAVSEA/PEOs/SP

NAVAIR/PEOs

SPAWAR/PEOs

BUMED

NAVFAC

MPT&E


Capabilit

y


ProviderEnterprise

NavyEnterpriseExComm

FleetReadinessEnterprise

Issues

Collaboration

3

Issues

ProviderEnterprise



Navy Enterprise

Collaboration

Navy E

xped

itionar

y

Combat E

nterp

rise

Naval

Avi

atio

n Ente

rpris

e

Underse

a W

arfa

re

Ente

rpris

e

Navy

Network

&

Forcen

et E

nterp

rise

Surface

War

fare

Enterp

rise

CNIC (Installations & Env)

NAVSUP

ONR (S&T)

NAVSEA/PEOs/SP

NAVAIR/PEOs

SPAWAR/PEOs

BUMED (Health Services)

NAVFAC

MPT&E Pers & Trng

AT

&L

NAE SWE USE NNFE NECE

No SECNAV action anticipated in the next 2-3 months

Anticipated SECNAV action required the next 2-3 months

SECNAV action required the next 2-3 months Current Month (Previous month inside)

KEY:

OUTPUT AT COSTOUTPUT AT COST

Air Warfare AMD SFC Warfare US Warfare EXP Warfare NN Warfare

FRP Readiness oversight by Numbered Fleets using NMETL construct translates platform readiness to capability readiness

MHQ

Strategic Management Review (Navy Enterprise Issues)

“NOTIONAL DATA ONLY”

Issues

ProviderEnterprise



Navy Enterprise

Collaboration Other Provider Outcomes

Supported/Supporting– CNIC “Red X, Black X” initiative– Mapping Provider product lines (NAVFAC)

Sample Output Metrics MPT&E – “Fit at best cost” NAVSEA – “Warships ready for tasking at cost” NAVFAC – “Required facilities to achieve

readiness/future capability at lowest lifecycle cost”

NAVSUP – “ACWT at cost” ONR – “% proposed tech solutions accepted” BuMed* – “Sailor Medical Readiness at cost”

* Provider brief in late Jan 07

Issues

ProviderEnterprise



Navy Enterprise

Collaboration Force Structure Requirement

Aligned with risks accepted in QDRAligned with risks accepted in QDR

$13.4B

~350 Ship Navy

~313 Ship Navy

~286 Ship Navy

• Capability impact (2020)– Stabilizes @ ~313 ships– Satisfies warfighting

requirement – Provides the necessary

capabilities

•Industry Impact – Stabilizes shipbuilding

account•Requires concerted

modernization effort to achieve full service life

Acceptable Risk

Low Risk/Unaffordable

Unacceptable Risk

Issues Provider Enterprise Fleet Readiness Enterprise Navy Enterprise ExComm Navy Enterprise...

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