THE LINK - Department of Defence€¦ · THE LINK Defence Logistics Magazine ... Lieutenant...

THE LINKDefence Logistics Magazine

IN THIS ISSUE

Strategic Logistics Reform Program

ISSUE 5 July 2009

to train, fight and win

strengthening communication along the logistic chain

LOGISTICS

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THE LINKDEFENCE LOGISTICS MAGAZINE

Logistics underpins all the Australian Defence Force

achieves in operations at home and overseas. For

the first time, the decisions behind a Defence White

Paper have been informed by a well considered

Logistics Companion Review and I thank everyone

who contributed to its development.

The Defence White Paper 2009 signals the start of

long overdue and significant, deep and strategic

reform to every part of our organisation—reform

that will be driven by substantial new investment

into logistics in order to realise savings that will be

reinvested into current and future capability

The Strategic Reform Program is about improving

the way we work, making our processes more

efficient, our governance more effective and it’s

about building more robust costing methods

and more responsive systems. This is precisely

what we are aiming to achieve with the proposed

logistics developments.

This issue of The Link introduces some of the

proposed logistics reforms. Their implementation

will be the theme of the Australian Defence Logistics

Conference in July. Future issues will keep readers

informed of our progress.

Major General Grant Cavenagh,

Commander Joint Logistics

If you don’t like change, you’re going to like irrelevance even less.

General Eric Shinseki, Chief of Staff, U.S. Army

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The Link is published twice yearly by Headquarters Joint Logistics Command.

The Link: Defence Logistics Magazine is a professional logistics journal published twice annually in hard copy and online by Joint Logistics Command.

Its objectives are:

• Topublisharticlesinengaging,non-technicallanguagethataddtothelogistics body of knowledge, and enhance the profession of logistics and the image of logisticians

• ToinformtheDefenceandwidercommunityofthestrategicroleandscopeof logistics in supporting operations and the raise, train, sustain functions of the Australian Defence Force

• ToreinforcetheharmonisationofallaspectsoflogisticsthatenabletheAustralian Defence Force to train, fight and win

• TohighlightadvancesandachievementsinDefencelogistics

Submissions for The Link are most welcome. Writers’ guidelines are on the Joint Logistics Command intranet site or can be requested from the editor.

The views expressed in The Link are the contributors and not necessarily those of Joint Logistics Command or the Department of Defence.

Headquarters Joint Logistics Command CP4-2-011 Campbell Park Offices Department of Defence Canberra ACT 2600 Tel: 02 6266 4538 Email: [email protected]

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LOGISTICS REFORM DELIvERING SAvINGS AND NEw CApAbILITIES 2

DEFENCE STRATEGIC LOGISTICS REFORM pROGRAM—A COORDINATED AppROACH 3

FuTuRE STORAGE AND DISTRIbuTION pROjECT —HELpING DELIvER LOGISTICS REFORM 5

TECHNOLOGy DRIvES buSINESS pROCESS IMpROvEMENTS 7

vIpA—TwO yEARS ON 10

ExpLOSIvE ORDNANCE LOGISTIC REFORM 13

REFORMING TECHNICAL REGuLATION OF ExpLOSIvE ORDNANCE 15

REFORMING THE MANAGEMENT OF DEFENCE INvENTORy 17

wHITE pApER LOGISTICS INFRASTRuCTuRE INITIATIvES 20

pARARI, AuSTRALIAN ExpLOSIvE ORDNANCE SyMpOSIuM 22

REbuILDING AIR FORCE LOGISTICS—THE LOGISTICS bRANCH AIR FORCE 23

LOGISTICS REFORM ACROSS ARMy 26

MuTuAL LOGISTICS SuppORT ARRANGEMENTS 29

QuEEN’S bIRTHDAy HONOuRS 32

DLC upDATE 33

CONTENTS

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KLOGISTICS REFORM—DELIvERING SAvINGS AND NEw CApAbILITIES

Major General Grant Cavenagh Commander Joint Logistics

This is an exciting time for everyone involved

in Defence logistics.

In May this year, the Prime Minister released the

Defence White Paper: Defending Australia in the

Asia Pacific Century: Force 2030. The White Paper

explains how the government plans to strengthen

the foundations of Australia’s defence so that we are

ready to meet the challenges of an uncertain future.

Defenceplanningisinherentlylong-term

and complex. The White Paper projects the

government’s view of the future, the strategic risks

ahead and how the nation plans to respond.

Developing the White Paper has involved a

fundamentalre-examinationofcapabilityforfuture

Australian Defence Force commitments. The result

is a plan that outlines where government sees

us operating, and the level of preparedness and

sustainment expected.

For the first time the Defence White Paper was

supported by a series of comprehensive companion

reviews, which were prepared to provide valuable

input into the development process. The Logistic

Companion Review provided a significant platform

for a range of current initiatives. I must thank all

those across Defence who assisted with work

supporting the White Paper and the associated

projects that have helped us get to this point.

Through the Defence Strategic Reform Program,

government has committed to a wide ranging

program of Defence logistics reform including

operational support infrastructure to support two

new amphibious ships (entering service from

2014);modernisingofDefence’swarehousing

anddistributionsystem;introducingleadingedge

technology to improve the management of our

inventory;andstrengtheningmanagementof

explosive ordnance and fuel as strategic capabilities.

Collectively, this logistics reform program is the most

ambitious and comprehensive in modern history—

the largest investment in logistics since World War II.

The reforms will address many looming logistics

challenges—infrastructure, information and

communications technology, visibility of assets,

preparedness and accounts. An overall outcome

will be the strengthening of logistics business

processes with a consequent increase in efficiency

and effectiveness.

This is not a ‘blank cheque’ exercise however.

Delivering these reforms will come only from

realising savings and efficiencies in our current

logistics business—real savings, real change and

real efficiencies that will provide the dollars

needed for reinvesting in modern, progressive

streamlined logistics. A variety of savings have

been identified—some are derived from process

change while other savings will flow from the use

of modern technology and facilities—but there is

scope for all personnel involved in logistic support

to review their own actions and investigate the

possibility of further savings.

As professionals, we are looking at the

implementation of a very demanding logistics reform

agenda—demanding, but at the same time very

exciting. It promises to be a tremendous opportunity

for Defence logisticians as we work together to

implement logistics reform for Force 2030.

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DEFENCE STRATEGIC LOGISTICS REFORM pROGRAM— A COORDINATED AppROACH

Lieutenant Commander Ed Lawler, RAN Defence Strategic Logistics Review Program, Strategic Logistics Branch, Joint Logistics Command

The Australian Defence Force has been at a high

operational tempo for some time and, in all likelihood,

will continue to be so. Effective delivery of logistics

support is essential to operational success and

has been achieved, but in a more costly fashion

in comparison to contemporary industry practice.

Accordingly, there are significant opportunities for

deep reform to improve logistics affordability through

the adoption of better business processes, optimal

use of technology and introduction of modern

purpose-builtfacilitiestoprovidethenecessary

efficiencies and productivity gains.

All major elements of this broad logistics reform

agenda being pursued by Defence are incorporated

into the Defence Strategic Logistics Reform

Program. This ensures a coordinated approach to

Defence logistics reform and remediation activities.

It covers logistics systems that extend from front line

soldiers, sailors and airmen on operations globally to

logistics bases and personnel in Australia.

The Defence Strategic Logistics Reform Program

elements have been formulated against the

backdrop of the emerging trends in commercial

logistics and assessment as to how these trends

might impact Defence logistics. This has provided

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today to meet future requirements. The Defence

Strategic Logistics Reform Program includes all

elements of the Logistics Companion Review

supporting the 2009 Defence White Paper, the

results of the 2008 Defence Budget Audit and agreed

remediation activities. Defence Strategic Logistics

Reform is coordinated as part of the Defence

Strategic Reform Program approved by government.

The Defence Strategic Logistics Reform Program

focuses on the most compelling areas in need

of close attention, through deep reform, and

identified where investment is essential to maximise

productivity gains and provide improved logistics

support to Defence.

The program is being progressed under six streams.

All reform and remediation activities have been

grouped under these streams. These are:

LOG1 Consolidation and rationalisation of

Defence’s existing wholesale storage

and distribution.

LOG 2 Delivery of significant business

improvements through the remediation of

high priority logistics information shortfalls.

LOG 3 Improvement of materiel logistics

sustainment and preparedness.

LOG 4 Delivery of adequate explosive ordnance

importation, wholesale and retail storage

facilities and a supporting distribution

network, to provide an effective and

efficient Explosive Ordnance capability.

LOG 5 Improvement of the strategic

management of fuel.

LOG 6 Reform the management of

Defence Inventory.

We already have significant reform activities

underway. We have a range of logistics assurance

activitiesinprogress;wearere-engineeringour

base services logistics contracts and have a

future storage and distribution project established.

Defence has the Joint Electronic Fuel Information

Management System and the Electronic Supply

Chain Manual in contract. We are progressing

the Defence Materiel Entitlement System. We

have invested in three years of research and

development by DSTO to deliver an operational

logistics planning tool that is now ready to be

‘operationalised’. This will provide Joint Operations

Command and the Services capacity to model and

then deliver the most cost effective logistics solution

to support operations.

The collective program of logistics reform,

together with the work already underway such

as implementation of the Weapons, Munitions

and Explosives audit, Mulwala remediation and

continuance of the logistics assurance and

governance activities, national and international

engagement, will be lead by Commander Joint

Logistics, and orchestrated by Director General

Strategic Logistics, under the umbrella of the

Defence Strategic Logistics Reform Program.

Further information can be found at the DSLRP

website located in the Joint Logistics Command

website. Your questions can be forwarded to

DSLRP [email protected] and they will be

answered promptly.

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FuTuRE STORAGE AND DISTRIbuTION pROjECT—HELpING DELIvER LOGISTICS REFORM

Lieutenant Colonel David Hooper Supply Chain Branch, Joint Logistics Command

After16yearsabsencefromourlogistics

environment, my reaction was evident for all to

see on first viewing a Defence warehouse and its

operation.Thewell-wornphrase‘somethingsnever

change’ stayed with me as I commenced work on

the Future Storage and Distribution project in early

2008 as one of the broad reforms proposed for the

new Defence White Paper.

The opportunity to be involved in a project to

reshape Defence’s base logistics landscape over

the next 20 years was compelling. Further, the

synergy of vision among the Defence and industry

professionals that created, guided and delivered the

various submissions to achieve White Paper status

was overwhelmingly unified. From the highest level

of Defence down it was acknowledged—the time for

change, investment and modernisation has arrived.

The May 2009 release of the White Paper with

Government’s endorsement of Defence’s Future

Storage and Distribution Strategy was vindication

of the vision and also marks a major milestone

in the professional lives of Defence logisticians.

The opportunity to move Defence warehousing

and distribution to a new paradigm of modern,

purpose-builtfacilities,operatingonleading-

practice technology and underpinned by genuine

performance-basedcontractingishereforusto

seize and implement.

Joint Logistics Command’s storage and distribution

network is a cornerstone in Defence’s logistics

solution, and of prime importance for national

security. It houses much of the materiel needed

to support current and future operations, as well

material to support Australian Defence Force

raise, train and sustain activities. The storage

and distribution infrastructure must align with the

national distribution grid, including rail, road, air and

port access with an infrastructure that supports the

ADF’s ability to provide efficient surge for operations

and mounting base activities.

Few would dispute that Defence’s current logistics

footprint is widely dispersed, costly and inefficient,

falling short of contemporary commercial practice.

Facilities are dated, with World War II vintage

warehouses in many locations which have suffered

from a lack of investment over a considerable period.

There are currently 24 major sites around Australia

supporting the Defence storage and distribution

network.The24siteshave201warehouseswith

583,285 square metres of warehousing storing

over101millionitemswithavalueofover$5billion.

In 2008, there were nearly 500,000 consignments

moved within the network. The network is large

and complex and presents significant opportunities

for efficiencies.

Throughout 2008, various aspects of Defence’s

logistics network were reviewed in a number of

studies including the Defence Budget Audit. All

the studies concluded that there was significant

opportunity to rationalise the storage network and

win significant savings through investment in new

facilities and the introduction of new business

processes utilising optimised technology.

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by Joint Logistics Command, was required to:

a) ensurethatthesupplychaininfrastructure

supported the Concept of Operations for

ADFcapabilities;

b) leverage‘BetterPractice’commercial

standards;and

c) providesupportinasustainable,effective

and efficient manner that would optimise the

storage and distribution footprint of the ADF.

The proposed JLC strategy to reduce the logistics

footprint from 24 ‘wholesale’ sites across Australia

to seven was confirmed as both operationally and

commercially feasible with the site locations being

Darwin, Townsville, Amberley, Bandiana, Edinburgh,

Perth and Moorebank. A minimum footprint will

need to be retained at a further seven sites (Hobart,

Puckapunyal, Oakey, Williamtown, Richmond,

NowraandWallangarra)tomeetcustomer

operational requirements.

This improved model also incorporates better

practices such as bar coding and storage

management and planning enabled by an integrated

commercial Warehouse Management System

(WMS).(Althoughstandardcommercialpractice,

DefencedoesnothaveaWMS.)Themodelis

capable of accommodating alternative stocking

strategies for relevant segments of the inventory

such as vendor managed inventory. Unutilised

space will be reduced to a maximum of five per cent

above required capacity. The improved model also

allows for strategies to handle slow moving stock

more efficiently and effectively.

The new model requires a significant capital

investmentofapproximately$482milliontoenact

the site rationalisation plan. This could be achieved

through either traditional Defence build and operate

solution, or through one of a number of Public

PrivatePartnership(PPP)models,includingaPPP

arrangement for the building, maintenance and

operation of the facilities whilst delivering Defence’s

storage and distribution requirements. In all, five

procurement options have been considered and

further work is being undertaken to determine which

option provides the best value for money.

Underpinning these improvements is the need

for a revised contracting approach to govern the

contractor’s service delivery within the base logistics

environment.Whilethecurrent(revised)contract

reflects initial steps towards Performance Based

Contracting, the next contract, envisaged as part

of Defence’s future strategy, will represent ‘best

practice’performance-basedcontracting.The

deliveryandexecutionofanewperformance-based

contract will ensure Defence is well positioned to

reapthebenefits(andsavings)envisagedforthe

new environment.

In conclusion, Defence’s Future Storage and

Distribution Strategy will address today’s outdated

WWII storage infrastructure, outdated technology

and high operating costs by comparison with

benchmarked relevant commercial practice. It

willmoveDefencetoamodern,leading-practice

system-drivensupplychainnetwork,managed

through measurable and industry recognized KPIs

and standards. As such, it will be capable of cost

effectively discharging service delivery obligations

to meet existing and future ADF operational

requirements projected for the next 20 years to 2030.

The observation that ‘some things don’t change’

can no longer be justified when it comes to

discussing Defence Logistics.

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TECHNOLOGy DRIvES buSINESS pROCESS IMpROvEMENTS

Selby Dyer, Director Logistics Information Systems Management, Joint Logistics Command

The Defence White Paper has identified a number of

technology-basedinitiativestoimprovehowwedo

business and how we manage our inventory. Known

asAutomatedIdentificationTechnology(AIT),

these initiatives will help Defence modernise and

introduce industry best practice to its warehouses

and retail centres. AIT will bring major efficiency and

productivity gains to how we procure, store, record

and distribute our inventory.

What is Automated Identification Technology?

AIT refers to a family of technologies and devices

that store, capture, aggregate, and transfer data

to information systems.

These include an ever increasing range of software

and hardware components within three discrete,

butinter-relatedtechnologies:

1. AIT data storage media/labels-barcodes,

radiofrequencyidentification(RFID),card

technologies(magnetic,opticalandsmart),

and global positioning systems.

Linear Barcode Two-dimensional Barcode

Passive RFID Tag Active RFID Tag

2. Input devices or terminals, and associated

AIT specific software-usedtocollect,filter

and aggregate the data stored on the AIT storage

media and pass that data to Defence LIS.

Handheld Reader for Barcodes or Passive RFID tags

Door/Gateway Reader for Active and Passive RFID tags

Omni-Directional Reader for Active RFID tags

3. Data transmission systems -usedto

transfer data into and out of Defence Logistics

Information Systems (including RFID, wireless

networks, the Defence Restricted Network and

theDefenceSecretNetwork).

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AIT reduces administrative and logistics costs

by automating routine, repetitive tasks, thereby

increasingdataaccuracy(eliminatingerrors),

speeding the collection and transmission of data,

and making the entire data entry and collation

process far more efficient. AIT can also provide

newcapabilities,suchasa24-hourdatacapture

capability for tracking equipment and consignments,

because manual tracking is cost prohibitive.

In the logistics domain AIT is essential to achieve

end-to-endvisibilityofthesupplychain.Thisinturn

will provide trust and confidence in the logistics

system for both the war fighters and business

managers at all levels.

The alternative is this:

How Will Defence Implement AIT?

The2006DefenceAITStrategy(DAITS)outlinesthe

current state of AIT enabled Logistics Information

System(LIS),thefuturestateofAITenabledLIS

and implementation issues that Defence is likely

to encounter on the way. The Strategy led to the

development of three critical enabling documents

that, in essence, answered the ‘what’, ‘why’, and

‘how’ questions about AIT:

1. AIT Standards – detailing the media and

hardware standards to be adopted by Defence,

with an emphasis on using international

or commercial standards where possible,

NATO standards as the next preference, and

Australian local or military standards where no

alternativeexists;

2. AIT Schema – providing asset and inventory

managers with a guide to assist in determining

the most appropriate AIT for their particular area

ofresponsibility;and

3. AIT Roadmap – providing the overarching

guidance on the initiatives required to apply AIT

to the Defence logistics system. This document

covered existing AIT initiatives and sought to

identify the additional initiatives required to fill

capability gaps in the supply chain.

All of these documents were used to develop the

Joint Logistics Command input into the Logistics

Companion Review to the Defence White Paper.

The initiatives put forward now form an integral

part of the Defence Strategic Logistics Reform

Program, which aims to increase the efficiency and

effectiveness of the provision of logistics support to

the warfighter.

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AIT Initiatives

Small Arms and Associated Items. It is planned

to use AIT to automate processes for the issue,

receipt, and stocktake of small arms and associated

items at the unit level. This will initially be trialled

on a range of small arms, weapon attachments,

and complete equipment schedules held by Unit

Armouries in the Puckapunyal Military Area.

RFID for Parachutes. This will provide a solution

for automated identification and tracking of

parachutesandwillbetrialledinitiallyat176Air

Dispatch Squadron in Richmond.

Ground Support Equipment (GSE) Tracking.

Active RFID tags will be used to monitor the location

of GSE on airfields. This will initially be trialled at

RAAF Base Williamtown.

RFID for Containerised Stores.

An RFID capability will be introduced to manage

containerised contingency stock to reduce, and

ultimately remove, the requirement to destuff or

open containers for stocktaking purposes. This will

initially be trialled on contingency stores and inactive

items of stock.

Dimensional and Weight Data – This project

will capture and record dimensional and weight

measurements for Defence inventory. Not an AIT

initiative as such, but a critical enabling activity for

the Warehouse Management System which will

improve how we handle and manage our stock.

Inventory Barcoding – It is planned to identify and

label all suitable items within the Defence inventory

down to unit level. Barcoding will be extended

across the inventory as an enabler to the use of

Automated Data Collection devices.

Automated Data Collection to Units – The

project will provide the mobile hardware and

supporting infrastructure required to read and write

AIT media down to unit level. This will increase data

accuracy, and bring efficiencies in stocktaking and

inventory handling.

Asset Management System – The system will

provide the hardware and software required to

receive and manage AIT data.

The four AIT documents referred to in this article

are available on the JLC website at: http://intranet.

defence.gov.au/jlc/sites/SLB/comweb.asp?page=3

3789&Title=Implementation.

Alternatively, the documents can be navigated to as

follows: VCDF Group > JLC > SLB > DLISM > DLIS

> Implementation Program / Automatic Identification

Technology Capability Management Office.

Gateway Reader for Active and Passive RFID Tags.

Handheld Reader and Active RFIS Tag.

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Commander Grahame Falls, RAN Deputy Director Strategic Logistic Developments, Strategic Logistics Branch, Joint Logistics Command

COTS / MOTS solutions

There were commercially available logistics planning

tools assessed by the key users prior to embarking

onthisdevelopmentalproject;however,nonewere

considered suitable for the ADF’s requirements.

Invariably, these tools required a significant number

of trained personnel to operate and would require

substantial software tailoring.

In contrast to other ADF capability procurement

activities, the VIPA project has been extremely

agile to meet the customer requirements whilst

delivering the capability on time and at very good

value for money.

What is VIPA and what does it do

The key requirement for VIPA was to deliver a

system which permits the rapid capacity for

planners to:

• calculatedeployment/re-deploymentanddaily

sustainmentrequirementsforagivenforce;

• calculatetheOperationalViabilityPeriod;

• determinethefeasibilityofdeploymentand

sustainment for a planned logistics distribution

network;and

• conductbroadlogisticcourseofactionanalysis

including comparing relative efficiencies

and effectiveness of alternate distribution

arrangements.

VIPA has three key modules to build an Order

ofBattle(ORBAT);definemissionprofiles;and

logistically characterise activities, designate

movement nodes, modes and assets to determine

sustainment requirements.

Mature VIPA

Sincethedeliveryoftheprototypein2007,VIPA

development continued through a DSTO lead,

user-centred,rapidprototypingprocesswith

support from the ADF logistics community and

sponsorshipfromStrategicLogisticsBranch(SLB).

VIPA Early days

TheVitalPlanningandAnalysis(VIPA)toolhasbeen

under progressive development since late 2006 in

order to provide logistic planners at the strategic,

operational and high tactical levels with a robust

tool suite to assist in immediate and deliberate

logistics planning. The project was a collaborative

undertaking between the Defence Science and

TechnologyOrganisation(DSTO)andtheJoint

LogisticCommand(JLC)usingJointLogisticsMinor

Capital funding.

The primary driver behind VIPA development was

the need to improve planning accuracy and reduce

the decision support times by automating the

‘number crunching’ to calculate daily sustainment,

deployment and redeployment volumetrics. It was

also required to compare and optimise distribution

plans and calculate strategic lift requirements using

smart algorithms.

VIPA was subject to a bespoke development

processes resulting in the rapid delivery of version

1.0prototypetoHeadquartersJointOperations

Command(HQJOC)SupportBranchforuser

acceptancetestinginDecember2007.Following

positive feedback from senior logistic planners, the

CommanderJointLogistics(CJLOG)directed

that VIPA development continue apace and be

migrated to a mature systems environment at

the earliest opportunity.

vIpA—TwO yEARS ON

“VIPA promises to propel logistic planning and decision makingintothe21stcentury”

Brigadier David Saul, Director General

Strategic Logistics, March 2009

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This relationship with the logistics user community

has shaped VIPA to meet the ADF’s needs, policies

procedures and data requirements.

VIPAversion1.1wassubsequentlydeliveredover

the period July 2008 to March 2009 to five ADF

sites(HQJOCSupportBranch,JMOVGP,HQ1Div,

17CSSBdeandSLB).

Feedback from joint logistics planners has confirmed

that VIPA will not only deliver against its original

capability requirements but also exceed expectations.

VIPA can greatly assist the logistics planner to

answer the Commander’s short notice questions on

feasibility analysis for possible contingencies, or the

‘what if’ questions. Many of these questions can be

answered within one hour with higher accuracy and

confidence than at present. The logistics planner

can also highlight to the Commander

the various risks and options within a proposed

course of action.

VIPA Future Developments

The success of VIPA and its positive feedback from

the logistics planning community has lead to further

development requirements.

VIPA version 2.0 is currently planned to develop the

ORBAT Editor, Mission Profiler, Distribution Planner,

Aide Memoire Data Service, Supply and Demand

Modelling, Problems Panel, Load Calculations,

Medical Calculations, Risk Analysis Tool, Explosive

Ordnance Calculations, and the VIPA Workbench.

These development priorities were established

following stakeholder engagement and refinement

by HQJOC as the primary user.

VIPAversion1.1hasalsobeenincludedasakey

element of in JP2030 Phase 8 Joint Command

SupportEnvironment(JCSE).Thiswill:

• integrateVIPAintotheJointPlanningSuite;

• allowtheconductoflogisticplanningTraining

Needs Analysis and deliver a comprehensive

Trainingpackage;

• roll-outVIPAontheDefenceRestricted

Network(DRN)andDefenceSecretNetwork

(DSN)tothebroaderlogisticplanning

communityfromearly2010;

• providethrough-lifesustainment;and

• managefutureVIPAdevelopments.

Future VIPA versions should include planning at

a greater degree of fidelity necessary for lower

operational and higher tactical level planners.

Force Structure Force StructureSustainment

Mission Profile

Get Aide Memoire Data Calculate Sustainment

ORBAT Editor

Mission Profiler

DistributionPlanner

Scheduling and Planning Algorithm

Optimised inventory holdings by location supports a more effective/efficient maint System

Servicing ReviewMEPMMIPMPIT

Train LEAN PractionersLEAN Army Wksp

Review of Preventative

Maint

Review of Non-Tech Inspections

DMO Modelling Army Internal Review

DefineForce

DefineActions

DefineDistribution

Network

AnalyseResults

DefineOVP

Aide MemoireDatabase

SustainmentEngine

Effective support to Air Force outputs

Air Force Logistics Effect

Director of Supply CapabilityGPCAPT Sue McGready

Director of Technical CapabilityGPCAPT Peter Yates

Inventory Management

Land Materiel Maintenance

Interrelationship Between Materiel Maintenance and Inventory Management

LEAN Principles

VIPA Services

EO SAFETY SYSTEM

Lead TRA (Technical Integrity)

Technical Regulator EO Storage and Transport (DOS)

EO LIFE CYCLE

Platform Integration Disposal

Environmental TRAs

LAND

AIR

MARITIME

VIPA PROCESS FLOW

LOGISTICS BRANCH - AIR FORCEDrive improved Governance and Strategic Management of Air Force Logistics Capabilities

ARMY STRATEGIC REFORM PROGRAM IMPLEMENTATION

- Efficient - Effective

support concepts

Workforce sponsorship

Supply compliance

Customer/Supplier Agreements

- MSAs - CSAs

Supply chain development

DGLOG-AF

AIRCDRE Ian Smith

Long-Term Remediation of Land Materiel Maintenance & Culture of Army Maint pers

Immediate return: Increased productivity Reduced resource usage

Optimising holding and establishing appropriate size for each line item

Reducing holdings and returning equipment to stock or pools

All Army Wksp

Tank B/Hawk R2 All Fleets

Gen Stores Inventory

Repairable Inventory

Obsolete/obsolescent

AFVSPO ENGSPO

Cbt ClothingTranche One

BOP Tranche Two

ConsumablesTranche Three

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Compliance and Assurance Measurement Improvement

Base Accountabilities

Reducing the Cost of Ownership – Materiel Management

DEFENCE CAPABILITY

“With the requisite data, VIPA can reduce the logistics planning effort from three weekstothreedays”

Group Captain Hayden Marshall,

Director Logistics Plans, HQJOC February 2009

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Module developments may include a maintenance

calculator, movements planner, cost reports and

functionalityforcollaborativeplanningandreal-time

interfaces with other Defence information systems

or other external information services.

At the end of the day it’s all about the Data

Logistics planning tools are totally dependent on

a critical mass of data to support planning. Whilst

the population of VIPA’s Aide Memoire Data Service

(AMDS)coversmostcommonelementstosupport

trials and user testing, it remains incomplete

in range and depth for present day operations

planning. Data requirements include information

about organisational units, facilities, equipment,

people types, supply items and containers.

To improve the availability of accurate and verifiable

data for current and future ADF constructs, the

Defence Logistics Planning Data Management

Framework(DLPDMF)hasbeenestablishedto

ensure data is better managed.

SLB is leading the implementation and management

of the DLPDMF, including establishment of business

rules for data identification, validation, management

and review by July 2009. JP2030 Phase 8 JCSE

will provide support to implement the DLPDMF

business rules with data collection and population

of the AMDS from July 2009.

Conclusion

The VIPA project has progressed a long way in

the last two years, with the delivery of a very

successful and mature system to efficiently and

effectively conduct logistic planning at the strategic

and operational levels. However, more work is

required to enhance it capabilities through VIPA

version 2.0, and to populate and validate the

critical data repository.

Further information

Detailed information about VIPA can be found on the

Logistics Wiki: http://logwiki.dsto.defence.gov.au/

display/LOGPEDIA/VIPA+Logistics+Planning+Tools

CMDR Grahame Falls, RAN

Deputy Director Strategic Logistic Developments

Strategic Logistics Branch

Joint Logistics Command

Phone: 02 6266 5484

Email: [email protected]

Dr Don Gossink

Head Planning and Logistics Discipline, C3I Division,

DefenceScience&TechnologyOrganisation

Phone: 0882596881

Email: [email protected]

Operational Logistics Planning using VIPA

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ExpLOSIvE ORDNANCE LOGISTIC REFORM

Mr Gordon Hooker Directorate of Explosive Ordnance Services

Mr David Morgan Directorate of Ordnance Safety, Explosive Ordnance Branch, Joint Logistics Command

The 2009 Defence White Paper identified that

‘the mounting of Defence operations relies upon

significant infrastructure support’ and that ‘a robust,

flexible and responsive logistics system is at the

heart of the ADF’s capability.’ The Strategic Reform

Program flowing from the White Paper outlines the

keyExplosiveOrdnance(EO)logisticelementsof

retail storage, wholesale storage and importation

to be remediated under wider Defence reform.

The Strategic Explosive Ordnance Infrastructure

Review(SEOIR),initiatedin2006-07toexamine

the infrastructure associated with the EO supply

chain, identified that much of the current EO logistic

infrastructure was not only beyond economical

sustainability—some facilities such as the EO Depot

atJenningsNSWwerebuiltintheearly1940s—but

also that some facilities do not align with wider

Defence preparedness enablers or were not built

onDefenceestatecapableoflong-termoperational

viability or capability evolution.

The proposed EO logistic reform is embedded

within the Defence Strategic Logistics Reform

Program(DSLRP)and,asanelementofthewider

2009WhitePaperStrategicReformProgram(SRP),

captures the three key EO logistic components

of(sea)importation,wholesalestorageandretail

storage that need to be addressed.

The proposed EO logistic reform will realise:

• AdedicatedEOlogisticsea-importation

facility that is collocated with an EO wholesale

storagefacility;

• redevelopmentofexistingwholesalestorage

facilities and the development of a new

wholesale ‘technology enhanced’ facility in

SouthAustralia;

Old Blending Tower, Mulwala Earth Covered Bunker (ECB)

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• therealignmentandredevelopmentoftheEO

retail supply chain towards EO ‘usage’ venues

(suchastrainingareasandranges)rather

than ‘home’ bases and barracks, through the

introductionofatwo-tieredretailstructure;

• thedevelopmentofaspecialisedEOlogistic

disposalfacilityatWoomera;

• thedisposalofEOlogisticestatedetermined

as no longer viable or sustainable within the

newEOLogisticSupplyChainmodel;and

• thepotentialforfuturerealignmentof

other specialised EO elements, such as

guided weapon maintenance, and some

proof and experimental activities with the

new wholesale facility.

Prior to the 2009 White Paper, the intent was to

deliver the SEOIR solutions through an initiative

entitled Project JERICHO. Since the release of the

White Paper and the establishment of the SRP,

Project JERICHO has been redefined to act as the

JLC Project Office for the oversight and reporting

of the DSLRP EO logistic infrastructure reform

deliverables. The proposed EO logistic solutions have

been agreed and these components are now being

developed into detailed implementation plans within

the DSLRP. This will lead to a reinvigorated and viable

EO logistic capability for many years to come.

However, it is not just reform to EO storage

and distribution facilities that is taking place—

enhancements to EO manufacturing and

maintenance infrastructure are also planned.

Defence Materiel Organisation is pursuing the

Mulwala Redevelopment Project, which is intended

to upgrade the propellant manufacturing capability

of the Mulwala Explosives Factory. The upgrade

involves establishment of a new propellant plant

(termedtheModernisedMulwalaFacility(MMF)),

establishment of a new ballistic test range,

development of several new solid gun propellants,

qualification of those propellants in accordance

with international standards, and certification of the

ammunition containing those propellants.

‘Qualification’ is the assessment of the energetic

material by the ‘National Authority’ that determine

whether the material possesses properties which

make it safe and suitable for use in its intended

role.TheDirectorOrdnanceSafety(DOS),asthe

National Authority for Australia for the Qualification

of Explosives, will assess the outcomes of the

explosives characterisation testing performed upon

new propellants produced at the MMF, primarily

in terms of how easily a propellant will detonate or

explode(sensitivity)andhowstablethechemical

propertiesofthepropellantare(chemicalstability).

DOS will be closely supported by Defence Science

and Technology Organisation energetic materials’

scientific personnel in assessing the ‘Qualification’

test reports.

In conjunction with the release of the Defence White

Paper, the Minister for Defence announced that in

the next four years the government would invest

$90mtoconstructanewGuidedWeaponsfacility

in Western Australia. The facility will augment the

current missile maintenance facilities situated in New

South Wales. Both facilities will ensure the high level

availability of reliable guided weapons to meet the

needs of the Australian Defence Force by improving

maintenanceturn-aroundtimes.Followinganinitial

scoping study, construction of the Guided Weapons

facility is expected to take around three years.

All of the above initiatives will provide quality

support to Defence capability and preparedness

requirements, along with assurance to the Australian

community that Defence EO logistic support to our

nation will be assured for the next 20 years at least.

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REFORMING TECHNICAL REGuLATION OF ExpLOSIvE ORDNANCE

Mr Arthur Ringer Directorate of Ordnance Safety, Explosive Ordnance Branch, Joint Logistics Command

Handling explosive ordnance (EO) is inherently

dangerous and technical regulation is designed

so that every effort is made to ensure that

explosive ordnance functions as it is supposed

to—exploding when and where intended. This

article explains the recent history of how technical

regulation of explosive ordnance in Defence

has evolved, and continues to evolve, and how

lessons learned from bitter experience are used

to further improve safety.

On the 5th of September 1975, two armament

workers at the RAN Armament Depot, Newington

in Sydney were killed when an arming device

for a torpedo functioned as designed and

exploded. The changes that flowed swiftly from

this tragedy saw improvements in documented

procedures; quality management systems for

organisations involved in the design, manufacture

or maintenance of explosive ordnance;

and organisational reform. The Australian

Ordnance Council was established to provide

an independent assessment of the safety and

suitability for service of explosive ordnance being

procured for use by the ADF.

The need for further reform was identified during

Gulf War 1 where a hazard, previously dormant,

was revealed as soldiers gained firsthand combat

experience—the unauthorised field modification

of explosive ordnance and weapons. Following

an incident involving grenades in January 1993,

a board of inquiry found that the cause of the

incident was the unauthorised modification of

safety pins; in other words, the configuration was

changed without test, trial or review.

At the time of that incident, the safety assessment

of explosive ordnance was conducted in

accordance with NATO agreed processes known

worldwide as ‘Safety & Suitability for Service’ or

S3 for short.

In 1994, Defence Operations Manual—Safety

Principles for the Handling of Explosive Ordnance,

OPSMAN 3, was published. This provided the

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ordnance. This was a watershed document

providing the Defence-wide requirements for

handling explosive ordnance. Several years later

these became known as technical regulation.

In July 1998, a soldier was involved in an

incident during a live fire and movement exercise

in Malaysia. The subsequent investigation

established that the cause of the accident was that

three grenades stored in a pouch attached to the

webbing were able to move about such that the

pin of one fell out and the grenade initiated. The

pouches used were not designed for the grenades

and hence did not adequately secure them. In this

case, the configuration, role and environment were

all changed from what was approved as a safe

weapon. The Vice Chief of Defence Force (VCDF)

at the time reaffirmed the importance of the safety

and suitability for service process.

Other events in the early 2000s led to each

Service taking steps to manage the technical

integrity of the materiel in ADF service that was

under its control. Explosive ordnance; however,

lay over inter-service boundaries and for

convenience all three Services agreed that the

storage and transport of all Defence EO should

be regulated by a joint organisation. In September

2007, Chief of Defence Force (CDF) directed

extensive reforms to the management of explosive

ordnance leading to changes which streamlined

the technical regulation of explosive ordnance.

Following a review into the Management of EO

in Defence during 2007, CDF issued Directive

4/2008 which appointed VCDF, through

Commander Joint Logistics (CJLOG), as the

single point of accountability to assure the

efficient and effective management of the EO

domain. CJLOG appointed the Director Ordnance

Safety as the technical regulator for the storage

and transport of all Defence explosive ordnance

and the single service Technical Regulatory

Authorities have appointed the Director General

Technical Airworthiness as the lead Technical

Regulatory Authority for the technical integrity

of explosive ordnance used by the ADF.

Working together, the Director General Technical

Airworthiness and the Director Ordnance Safety

have been striving to reform the technical

regulation of explosive ordnance and are currently

developing and implementing the EO Safety

System diagrammatically shown below.

In all that Defence does, it has an obligation to the

government, society and our own people to keep

the EO secure and to maintain high standards of

safety. Sadly, history has shown that incidents do

happen. Technical Regulation is constantly being

adapted and improved, and will continue to be

used to identify, analyse, assess, treat, monitor

and communicate risk in the areas of safety,

performance and environmental compliance.

Through diligent regulation and monitoring

Defence will continue working to minimise the

number and severity of EO-related incidents.

EO SAFETY SYSTEM



EO LIFE CYCLE


Environmental TRAs

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REFORMING THE MANAGEMENT OF DEFENCE INvENTORyAir Commodore Peter Brennan Director General Logistics Assurance, Joint Logistics Command

What is governance? Governance is the process by which an organisation is led, managed and held to account. Governance encompasses organisational culture, values, accountability and stewardship and review mechanisms to provide confidence in performance and conformance. But why does Defence need a logistics governance capability? Read on.

Governance and Defence assets

The 2007-08 Defence Financial Statements

reported Defence assets totalling $56.9

billion with approximately $28 billion being in

Specialist Military Equipment (SME), Repairable

Items (RI), General Stores Inventory (GSI),

Explosive Ordnance (EO) and Fuel. However,

between Financial Year 2000-01 and 2007-08,

the Australian National Audit Office (ANAO)

maintained a qualification over inventory balances

against the Defence accounts.

In 2005 Logistics Assurance Branch (LAB) was

formed in what is now Joint Logistics Command

and, in conjunction with Defence Materiel

Organisation staff and a Chief Finance Officer led

‘tiger team’, undertook a targeted remediation

program to correct inventory balances. In FY

2005-06 the team reduced uncertainty across

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the Repairable Items (RI) balance by $1 billion,

removed the qualification over EO balances and

maintained clean balances for fuel. In FY 2006-

07, the team removed the qualification over RI

balances, established control over GSI quantities

and maintained clean balances for both EO and

fuel. Finally, in FY 2007-08 the team removed the

qualification over GSI balances and maintained

clean balances for RI, EO and fuel. These

results were achieved only with the considerable

assistance and efforts of the Groups/Services

supporting the targeted programs.

Logistics Governance Framework

The Inventory Assurance Strategy (the Strategy)

implemented in FY 2008-09 was to transition

to a ‘business as usual’ approach whereby the

assurance controls, procedures and processes

put in place over the three preceding years would

become part of our normal day-to-day business

without the need for a targeted tiger team

outcome. The Strategy is a comprehensive and

robust approach that will enable the gathering of

sufficient evidence to support the preparation of

‘true and fair’ Defence Financial Statements. The

Strategy comprises four layers encompassing

Business Process Management, Controls,

Stocktaking and Inventory Price Reform.

Logistics Reform

The Logistics Reform Program acknowledges the

responsibilities of Commander Joint Logistics

as the Strategic J4 and recognises the role

of Logistics Assurance Branch in providing

logistics compliance and assurance, performance

measurement, reporting and improvement of

Defence logistics processes and systems in

order to assure the effective and efficient use of

logistics resources. The Branch operates through

four Directorates accountable for coordinating

logistics compliance and assurance activity

across all Defence groups and Services, providing

logistics performance measurement and reporting

to Defence senior leadership, improving logistics

processes, championing reform to reduce the cost

of ownership to Defence, and ensuring Defence-

wide radiation safety and assurance.

Assurance is provided through a standard

business four-tiered structure whereby risks are

reviewed for management, functioning of controls

and operations are monitored, and results are

measured by those separate from day-to-day

activities at different levels. Across Defence,

this function is to be carried out by a team of

130 personnel (inclusive of LAB staff). In addition

to establishing an Inventory Assurance Program

and seeking to embed an enduring logistics

governance capability, LAB has established an

evolving radiation governance framework, is

coordinating an accelerated disposals program,

is focused upon remediating outstanding

inventory related ANAO Closing Audit findings,

has logistics and stocktaking policy drafted, and

is evolving supporting IT systems to both manage

and interrogate governance related data.

Evolution

The governance model used in logistics

assurance is detailed at Figure 1. The five key

activities of the Logistics Governance Framework

that establish a management assurance position

on inventory are Business Process Management,

IT Controls, Stocktaking, Inventory Price

Assurance and Reporting. Progress in each

of these areas has been an on-going journey

since 2005; audit findings are being addressed

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and reduced and data remediation activity

continues. Over that same time Defence has

transitioned from having no overall Defence 3rd

Party assurance teams to the use of an outside

contractor and finally to establishing and training

its own internal assurance teams.

IT controls were first introduced in 2005 using the

internationally recognised Sarbanes-Oxley variant

from the IT Governance Institute and continues

to evolve as test results emerge. Stocktaking in

Defence is built around a one (EO and Specialist

Military Equipment), two (Repairable Items, Plant

and Equipment, Heritage Assets and inventories)

and three (land, buildings and infrastructure)

year program cycle. Results to date continue to

be encouraging, with financial adjustments as a

percentage of our total asset base decreasing

over the last three years.

Pricing data continues to be addressed as

the focus has moved from legacy to ‘in year’

issues and significant effort remains in this area

due to the impact price discrepancies have on

the financial statements. Through a program

of improvement, over the last 13 months we

have disposed of over 10 million physical

surplus and obsolete items from stock and the

program continues. Further, we are about to run

a trial to ‘lock and hold’ life-of-type and slow

moving stocks so as to reduce the stocktaking/

management burden.

The Way Forward

The close scrutiny is being maintained—both

through our own internal assurance program

and with the assistance of the audits by the

ANAO. By addressing issues as they arise,

we are demonstrating commitment to the ongoing

reform of logistics governance. In March 2009

Logistics Assurance Branch implemented a

monthly reporting regime whereby evidentiary

work papers are produced around Fuel, EO,

RI and GSI to assist Defence management

in verifying inventory balances for the annual

Defence Financial Statements.

Governance and assurance is as much a journey

as a destination. The journey continues as part

of the Strategic Reform Program. The entire

supply and logistics community has a role to play

in its success. When combined with continued

investment in inventory management through the

Strategic Reform Program, Defence will be able to

attain a high standard of inventory controls.


Mission Profile


ORBAT Editor

Mission Profiler

DistributionPlanner






Maint



DefineForce

DefineActions

DefineDistribution

Network

AnalyseResults

DefineOVP


SustainmentEngine








LEAN Principles

VIPA Services

EO SAFETY SYSTEM



EO LIFE CYCLE


Environmental TRAs

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VIPA PROCESS FLOW




support concepts


Supply compliance


- MSAs - CSAs


DGLOG-AF

AIRCDRE Ian Smith





All Army Wksp





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BOP Tranche Two


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DEFENCE ASSETS




DEFENCE CAPABILITY

Figure 1. Defence Logistics Governance Framework

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wHITE pApER LOGISTICS INFRASTRuCTuRE INITIATIvES

Group Captain Stephen Winterton Director Strategic Logistics Reform Program, Joint Logistics Command

The government recently announced its intent to

invest,overthenextfouryears,around$140million

in enhancements to logistics infrastructure in Darwin,

Townsville and Western Australia.

The Port of Darwin has always been of vital strategic

importance to the Australian Defence Force and is

sustained by multiple transport systems providing

access to a variety of essential logistics support

services. More recently, the strategic importance

of Darwin was reinforced through the role it played

in mounting and supporting ADF and multinational

forces during Operation INTERFET in East Timor

in1999andsubsequentregionaldisasterrelief

and humanitarian assistance operations. Today,

Defence operations face competition with the

urban encroachment of residential and recreational

developments at the Darwin waterfront, as well as the

growth of commercial shipping, the cruising industry

and export trade, all of which restrict Defence access

to vital infrastructure at the Port of Darwin.

InDarwin,$20millionistobeinvestedinthe

enhancement of current Naval bulk fuel facilities

and the construction of new amphibious ship

loading facilities in the Port of Darwin. Specifically,

fuel pipelines at Fort Hill Wharf that support Navy

The changing face of the Darwin waterfront

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vessels’bulkfueloff-loadingtoandfromtheNavy

Fuel Installation at Stokes Hill will be upgraded to

ensure continued compliance with fire safety, and

occupational health and safety regulations. Over

recent years, Defence has lost over 60 per cent

of available berth space in the city wharf precinct

due to the decommissioning of Stokes Hill and

Iron Ore Wharves. With the exception of cruise

ships, all commercial shipping now uses East Arm

Port, which is not well suited to support warships

alongsidefornormalre-supplyactivitiesandis

becoming increasingly congested as new gas and

oil industries relocate to Darwin.

With the introduction into service of Defence’s

LandingHelicopterDock(LHD)amphibiousships

in2014,adequatefacilitiesneedtobedeveloped

to enable secure and unimpeded access to the

primaryside-doorloadingamphibiousshipsona

24/7basis,thatprovidesgoodroadandrailaccess

and proximity to Robertson Barracks. In conjunction

with the Northern Territory government, investment

in the construction of a hardened landing craft boat

ramp at East Arm Port will enable the LHDs to load

and offload vehicles, stores and equipment utilising

their organic watercraft as well as address the

challenges associated with the extreme tidal range

in Darwin.

Similarly, the Port of Townsville is key to sustaining

ADF operations. It provides necessary support to

forward deployed Major Fleet Units, and sustains

involvement in joint and multinational maritime

operations and exercises within the northern and

north eastern approaches. The Port of Townsville

development plans have identified the need to

upgradeBerth10toaccommodateHandymax

size(170-185m)commercialships.However,

this development would not accommodate the

Royal Australian Navy’s Landing Helicopter Dock

ships. To meet the introduction into service of the

LHDsin2014,over$30millionistobeinvestedin

Townsville over the next four years to upgrade an

existing wharf as well as provide improved aviation

fuel facilities to support current and future ADF and

multinational operations.

The enhanced upgrade will include lengthening

theexistingBerth10toapproximately230metres

and strengthening the berth to accommodate

the movement of heavy armoured vehicles and

equipment. Townsville will also be the beneficiary

of an enhanced naval aviation fuel storage facility.

These facilities will be capable of supporting aircraft

operation from the LHDs as well as other visiting

warships. Investment in new facilities will guarantee

the availability and supply of aviation fuel to Royal

Australian Navy ships for at least the next 25 years.

The construction of a Guided Weapons facility in

Western Australia was also included in the White

Paper. This maintenance facility will enable Defence

to improve missile operational availability and bring

new technology and industry to the West.

East Arm Port, Darwin

Future Landing Helicopter Dock ships

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Elliott Bator Engineering Systems, Directorate of Ordnance Safety, Joint Logistics Command

A brief history and origin:

In1993,ColonelAlanHutchinson,thePresident

oftheAustralianOrdnanceCouncil(AOC)—the

forerunner to the Directorate of Ordnance Safety—

and Dr John Barclay from Australian Defence

Industries(ADI),decidedtoamalgamatethetwo

explosive ordnance seminars which had previously

been run individually by the AOC and ADI. It was

also decided to run the joint symposium every

alternateyear,startingin1993.Theproblemwas

to decide on a title for the symposium. So Colonel

Hutchinson asked his mother, a Latin scholar, for

a word meaning ‘to be prepared’. The suggested

Latin term ‘PARARI’ means just that. The AOC

and ADI agreed on the title and it endures today.

The 9th Australian Ordnance Symposium ‘PARARI’

will be held at the Stamford Grand Hotel, Glenelg,

Adelaide,SouthAustraliafromthe10thtothe

12thofNovember2009.‘PARARI’isconducted

everytwoyearsandisco-hostedbyTheDirectorate

of Ordnance Safety and Thales Australia.

The2007Symposiumbroughttogether365of

the world’s leading experts from the Explosive

Ordinance(EO)community.Inthekeynoteaddress,

MAJGEN Cavenagh said:

The work done by every person in this room is

fundamental for supporting our armed forces

and their ability to train, fight, and succeed in our

missions whilst keeping our people safe.

Interest in PARARI 2009 has been positive

thus far, raising hopes that it will be a

well-attendedsymposium.

The theme for this year’s symposium is ‘Preserving

Combat Power by Enhancing Munitions Safety’.

Given the high tempo and varied climatic nature

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REbuILDING AIR FORCE LOGISTICS—THE LOGISTICS bRANCH AIR FORCECommander Joint Logistics, Wing Commander Linda New and Squadron Leader Abraham Stander, Directorate of Supply Capability – Logistics Branch – Air Force

After a period of time in the wilderness, the

importance of Logistics to Air Force capability is

being recognised again at the highest levels with

theformationofLogisticsBranch-AirForceandthe

fusion of supply and technical capabilities in depth

within the Branch.

Inthedecadepriorto2007,theAirForceLogistics

landscape was fundamentally altered by continuous

reforms, including the Defence Reform Program

(DRP).ResponsibilityandaccountabilityforAir

Force Logistics, particularly in the supply field, was

markedly fragmented across a number of Defence

groups. This compromised the provision of timely,

effective and efficient support.

of Australia’s current operational deployments,

this theme was considered the most appropriate.

Australian personnel are currently operating in areas

of climatic extremes like Iraq and Afghanistan, which

more than ever before severely tests the reliability,

safety and effectiveness of munitions.

The main themes for discussion at PARARI 2009 are:

• EOknowledge;

• EOPolicy;

• FieldStorage;

• EODisposal;

• EODesignSafety;

• TacticalLogistics;and

• EOOperationalSafety.

The symposium is centred around the topics

ofEOtechnologiesandnewprojects;insensitive

munitionsdesignandtesting;explosivesdesign

anduse;manufacturing;testing;riskassessment;

environmentalconsiderations;Unexploded

Ordnancedisposalandmanagement;transport;

blastandquantitydistances;explosiveseffects

modelling;improvisedexplosivedevices;

explosives safety, and EO management and

policy development.

The call for papers and presentations for PARARI

2009 has been well received with a significant

number of papers being sent in from sources

external to Defence. At this early stage, around

41papersandpresentationshavebeensubmitted,

covering a broad range of subject areas. The

good news is that the majority have been from

international experts, suggesting that the financial

crisis may not be deterring attendance. It is

expected that a number of agencies within Defence

will also provide papers, further boosting the

numbers of papers.

Attendance over the two days will cost

approximatelyA$750.Thiscoversentrytoall

technical sessions, program, satchel, electronic

copy of symposium proceedings, symposium

dinner, cocktail mixer, morning tea, lunch and

afternoon tea throughout the event. There is a

well planned, interesting and inexpensive partner’s

programavailableforA$150,whichcoversatripto

the Adelaide Hills to visit an historic town, a winery

and a chocolate factory.

Further information is available via the following link:

http://www.thalesgroup.com.au/live/2009/index.htm

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TheAirForceLogisticsCampaign(AFLC)—2003

to2007—spearheadedanumberofinitiatives

to address this fragmentation, including the

development of the Air Force Logistics Support

Concept, Logistics Management Framework and

Supply Governance Model and the implementation

of the Air Force and Aerospace Systems Division

(ASD)MaterielSustainmentAgreement.

InJune2007,LogisticsBranch-AirForce(LOGBR-

AF)wasformed.Thisfollowedtheappointment

of Air Commodore Ian Smith AM as the Director

GeneralLogistics-AirForce.Onceagain,AirForce

Logistics had a seat at the Chief of Air Force’s table

as his principal advisor on all aspects of logistics

(supply,maintenance,andengineering).

ThestaffingofLOGBR-AFwasdrawnfromthe

DirectorGeneralTechnicalAirworthiness(DGTA),the

formerLogisticsSupportAgency-AirForce(LSA-AF)

and as a direct result of the release of the Air Force

Maintenance Management and Governance Review

(AFMMGR)foradditionalworkforceresponsiblefor

technical governance.

In 2009, a new responsibility was taken on by

LogisticsBranch-AirForce:toleadthechange

in the management of Air Force bases and forge

a stronger relationship with Defence Support

Group under the new Base Accountabilities Model

(BAM).Thismodelwillprovideforseparationof

accountabilities for capability, force generation,

operationalsupportandotherDefence-specific

outcomes from that of base support management

and services.

WiththeformationofLogisticsBranch-AirForce,

a new strategic direction for Logistics was achieved

with the formation of two new Directorates: the

Directorate of Technical Capability (headed by

GPCAPTPeterYates)andtheDirectorateofSupply

Capability(headedbyGPCAPTSueMcGready).

LOGBR-AFnowpresentsAirForcewiththeability

to seamlessly integrate supply, maintenance and

engineering in delivering Air Force capability.

“Thisintegrationisvital”,saidAirCommodore

Smith, “to drive improved governance and

strategic management of Air Force logistics,

thatis‘bigL’logistics.”

Key benefits of a seat for Logistics at CAF’s table are:

• increasedseniorcommitteeawarenessand

influenceopportunitiesforAirForcelogistics;

• acknowledgementofaServiceProvider

Group relationship manager for Materiel

Sustainment Agreements and Customer

ServiceAgreements;

• specialistmemberexpertiseonjointlogistics

mattersinputatthehighestlevel;

• workforcecategoryandmusteringsponsorship

forbothtechnicalandsupplypersonnel;and

• alogisticsspecialistadvisortoCAFonAirForce

Logistics capability matters.

The diagram opposite shows the integration

between Supply and Technical Capability in

LOGBR-AF.

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TheroleofLOGBR-AFistodriveimproved

governance and the strategic effect of Air Force

logistics encompassing engineering, maintenance

and supply aspects.

ThisrolebuildsupontheformerLSA-AFactivities

and adds a significant boost via maintenance

governance and oversight.

The establishment of the One Star Logistics position

strengthens the critical logistics partnership within

Air Force with Director General Capability Planning,

Director General Technical Airworthiness, Assistant

Secretary Resource Planning, and across Defence

with DMO, DSG and JLC. The establishment of the

new O6 Director of Logistics Capability positions

withineachForceElementGroup(FEG)further

strengthens the relationship with Headquarters Air

Command and the FEGs.

AIRCDRE Smith keeps his two directors on their

toes progressing the many reforms and activities

essential for providing assured logistics support to

Air Force and Defence capability.

“There is so much work still to be done to rebuild

theAirForceLogisticscapability,”saidGroup

Captain McGready. “Our focus for this year is on

fusing the technical and the supply into an Air Force

Logisticseffect.”

“The potential capability benefits from linking the

strategic approach to engineering, maintenance

andsupplyareconsiderable,”saidGroupCaptain

Yates. “The key challenge in delivering sustainable

improvements across the Logistics domain is our

ability as a community to understand how technical

behaviours affect the supply chain and vice versa.

Theend-to-endstewardshipapproacharticulated

byDGLOG-AFprovidesthemeanstoresolvethis.”

“LogisticsBranch-AirForceiswellplacedfor

the future in relation to the White Paper and the

StrategicReformProgram,”saidAirCommodore

Smith. “Driving the logistics reforms that are

necessary to assure our current and future capability

isourprimaryfocus.”

See Page 31 for details of the Air Force Supply Conference 2009.


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Logistics Branch–Air Force

Drive improved Governance and Strategic Management of Air Force Logistics Capabilities

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LOGISTICS REFORM ACROSS ARMy

Major General Paul Symon, AO Deputy Chief of Army

These words from a renowned United States Marine

Corps officer endeavour to capture the expanse

of logistic activity in the early years of the previous

century,andstillresonatewithustoday;asdoes

his maxim that ‘an effective military organisation

must give its logistical staff the power and authority

of the initiative at the highest levels of the Army’.

Thorpe might have enjoyed serving in the Australian

Army in 2009, as it is in the very same vein that

Army’s logisticians have been charged with the

authority to drive logistics reform through Army and

contribute to complementary reform in supporting

organisations, such as Joint Logistics Command

(JLC)andtheDefenceMaterielOrganisation(DMO).

The Chief of Army, LTGEN Ken Gillespie, made it

very clear upon assuming command of the Army in

mid-2008thatheintendedtochallengethestatus

“Logistics... ‘embraces not merely the traditional functions of supply and transportation in the field, but also war finance, ship construction, munitions manufacture and other aspectsofwareconomy.’”

Lt Col George C. Thorpe,

Director General Pure Logistics,1917

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quo in order to improve the way Army undertook

its business and simultaneously ‘reduce the cost

of ownership’. The focus for much of this change

has centred on the Adaptive Army initiative, which

will deliver an Army that is better placed to respond

to a wide range of changing requirements. Army’s

logistics reform has been driven by Adaptive Army

and includes two main streams: a Combat Service

SupportForceModernisationReview(CSSFMR),

and several linked initiatives under the banner of

Materiel Management Reform.

The announcement of the Strategic Reform Program

(SRP)hasprovidedyetfurtherimpetusforreformand

is entirely compatible with the principles of Army’s

logistics reform. While still developing our approach

to the implementation of the SRP, Army has already

established an SRP Implementation Coordination

Team in Army Headquarters, with the supporting

streams to develop further over the next month.

The CSS FMR is responsible for developing the

force structure that will deliver effective support

to the Adaptive Army, both in barracks and in

a deployed setting, with an emphasis on the

retention of ‘technical control’ of CSS capabilities.

A key outcome is likely to be the consolidation of

specialist logistic capabilities at levels where the

retention of those capabilities can best occur, as

well as the redefinition of capability bricks and C2

structures to support the delivery of CSS effects in

the battlespace. The CSS FMR will be presented to

CASAC in mid 2009, for implementation between

2010and2016.

The materiel management reform initiatives depicted

in the diagram below cannot be implemented by

Army alone, due to the overlapping responsibilities

between Army, DMO and JLC for the management

of land materiel. Each one of these reform areas

represents a significant change to the way in which

Army has undertaken business in the past.

Adaptive Army is already foreshadowing a change

to the way in which Army views the ownership and

use of land materiel. We have known for some

time that there is far too much equipment spread

too thinly across Army, and that our maintenance

systems are not optimised to provide the level of

availability that we need to meet individual, collective


Mission Profile


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DefineForce

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LAND

AIR

MARITIME

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DGLOG-AF

AIRCDRE Ian Smith





All Army Wksp





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andmission-specifictrainingrequirements.

Accordingly, Army intends to rationalise the amount

of equipment within units in order to establish robust

loan and training pools. To maximise flexibility,

we will need to establish appropriate sized pools

with robust priorities that allow dynamic access to

materiel when required. We also need to negotiate

with JLC to assist in the holding and management

of these pools on our behalf—we are in the very

early stages of negotiation.

Army is working particularly closely with DMO,

which performs the fleet management function

of all land materiel on behalf of the Chief of Army

as the Capability Manager. Some of the materiel

management reforms already underway in this area

include the review of inventory managed by DMO,

review of the performance measures and reporting

undertheMaterielSustainmentAgreements(MSA),

review of equipment preventative maintenance

regimes, and the conduct of a repair pool trial for

B vehicles. The latter two are both supporting

efforts in the broader reform of the land materiel

maintenance system. The review of inventory is

aimed at optimising holdings against classifications

thatsupporttheequipmentlife-of-typeforboth

training and operational contingencies.

Inside Army, we are reviewing the manner in which

we consume materiel to ensure it aligns with Chief

of Army’s intent to drive down the cost of ownership

and allow reinvestment in higher priority areas. The

first tranche of this reform has commenced with

changes to the way we hold, provision and consume

combat clothing and personal field equipment.

Simply put, we have too much consumable

inventory held across Army. This increases the

governance burden in units and ties up resources

that could be better employed elsewhere.

The reform of the land materiel maintenance

system has been ongoing for some time, with

Adaptive Army and the SRP providing the necessary

impetus to make genuine gains in this critical

area. In conjunction with the DMO and JLC, the

latter of which is responsible for the conduct

of base repair, Army is seeking to increase the

maintenance capacity within units, while at the

same time reduce the maintenance burden.

Supporting efforts to achieve this include the B

vehicle repair pool trial in Brisbane, the review of

preventative maintenance regimes, the renegotiation

of supporting maintenance contracts, and a LEAN

maintenance agenda that is to be rolled out across

the entire land materiel maintenance system. The

complicated nature of the land materiel maintenance

system necessitates a tightly coordinated effort

betweenallinvolvedGroupstoensuretheend-state

of increased operational availability for the required

land materiel is achieved.

The scale of reform across the logistics arena in the

next five years is unprecedented in today’s Defence

Force. The pressure to get this right is further

exacerbated by the expected level of resources to

be freed to support the future Defence Capability

Plan. I am confident that, with continued robust

debate and analysis, Army’s logisticians, and those

in supporting organisations, will achieve success.

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MuTuAL LOGISTICS SuppORT ARRANGEMENTS

Terry Foster Deputy Director, Communications, Joint Logistics Command

Australia’s defence logisticians pride themselves

on being able to provide the Australian Defence

Force with the necessary supplies and services

for operations and exercises worldwide. It’s good

to know that we can also get support from other

nations should the need arise.

The ADF has entered into a number of Mutual

Logistics Support Arrangements (MLSA)

with Defence organisations from a range

of other nations to formalise international

cooperation. MLSA are the principal strategic

level arrangements through which the ADF

effects military-to-military transfer of logistics

support during operations, exercises and other

contingencies, including Humanitarian Assistance

and Disaster Relief (HA/DR).

With an MLSA in place, Defence logisticians

supporting Australia’s operational commanders

can expeditiously request services and supplies

from the signatory Defence Force—and the ADF

can reciprocate as required. Examples might be

fuel, tyres, rations, spare parts. Reimbursement

is either by cash, exchange in kind or exchange

of equal value.

In April 2009, Commander Joint Logistics,

Major General Grant Cavenagh, on behalf of the

ADF, signed two new Mutual Logistics Support

Arrangements with Indonesia and Italy.

Major General Cavenagh said, “These and

our other formal international Logistics

Agreements and Arrangements give the ADF

greater flexibility in securing logistics services

and support in contingencies.”

Major General Montouri and Major General Cavenagh sign the Australian – Italian Mutual Logistics Support Arrangement.

30

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covers the exchange of mutual support in Military

Operations Other than War (MOOTW) including

HA/DR operations. Signing on behalf of TNI was

Assistant for Logistics to the Commander in

Chief, Major General Abdul Ghofur, SE. Australia

worked with TNI on tsunami relief in 2005, and the

ADF and TNI have a comprehensive training and

exercise program. The new MLSA will streamline

future requests for logistics support.

The MLSA is one of the first initiatives progressed

between the ADF and TNI under the Joint

Statement on Defence Cooperation signed

by the Chief of the Defence Force and TNI’s

Commander in Chief General Djoko Santoso in

January this year.

Major General Cavenagh signed the MLSA with

Major General Alessandro Montuori, Chief of the

Logistics Department, Italian Defence General

Staff while both were attending NATO meetings in

Brussels. The Italian Republic is a member of the

Multinational Interoperability Council (MIC) along

with the United States, Canada, United Kingdom,

France, Germany and Australia. It is intended for

the ADF to have logistics arrangements with each

of the MIC member countries.

The then Minister for Defence, Minister Fitzgibbon

and French Defence Minister Morin, when they

met in Canberra last September, highlighted the

particular benefit of a future MLSA for Australia-

France defence cooperation in the South Pacific.

Negotiations are progressing towards finalising

that Arrangement, as well as one with Germany.

Major General Cavenagh and Major General Abdul Ghofur sign for Australian Indonesia..

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AIR FORCE SuppLy CONFERENCE 2009

On the 8th and 9th of September this year, Air

Force’s Director of Supply Capability will host the

Air Force Supply Conference at RAAF Williams

(Laverton).TheConference,whichisconvenedby

the Director General Logistics–Air Force, is open to

all Air Force logisticians SNCO and above including

Logistics officers and members of the Movements,

Catering and Supply musterings.

The theme for this year’s Conference is ‘Centres of

Excellence-LogisticsBestPractice’.

The conference is a key element of the Air Force

Logistics Professional Development Program, which

is designed to offer professional development,

information dissemination, mentoring, and networking

opportunities to Air Force Logistics personnel.

For more information about the Conference contact:

Directorate of Supply Capability

Logistics Branch–Air Force

F3-G-096|FAIRBAIRNACT2609

Tel: (02)61287044

Fax:(02)61287053

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QuEEN’S bIRTHDAy HONOuRS LIST

Four Australian Defence Force logisticians have been recognised with Conspicuous Service awards in The 2009 Queen’s Birthday Honours List.

Conspicuous Service Cross

Lieutenant Colonel Harry Walden, Wing Commander

Carl Walker and Colonel Craig McConachy, were each

awarded The Australian Conspicuous Service Cross.

This award recognises outstanding commitment to

duty or outstanding application of exceptional skills,

judgmentordedication,innon-war-likesituations.The

Conspicuous Service Cross is the first level award of

the Conspicuous Service Decorations.

Conspicuous Service Medal

Warrant Officer Class Two William Shaw was

awarded the Australian Conspicuous Service

Medal which is awarded for meritorious

achievementordedicationtodutyinnon-warlike

situations to members of the Australian Defence

Force. The medal recognises commendable

achievementorcommitmenttodutyinanon-

combativecontextsuchaspeace-keeping

missions. This award is the second level award

of the Conspicuous Service Decorations.

Hearty congratulations are extended to all

award recipients.

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DLC upDATE

TheDefenceLogisticsCommittee(DLC)isa

sub-committeeoftheDefenceCommittee.

The role of the DLC is to provide a strategic focus

on, and to be an advocate for, the vital place of

logistics in Defence capability. CJLOG chairs the

DLC, which meets every two months.

The DLC’s roles and responsibilities, membership,

agendas, papers and minutes are available via

theIntranet(DRN)underVCDF>JointLogistics

Command > Strategic Logistics Branch >

Committees/Working Groups.

DI(G)LOG4-1-017 Management Requirements for ADF Combat Body Armour

This is a new policy which addresses the

requirement to implement control measures for

the storage of combat body armour and better

accounting measures for the control and issue

of prohibited items such as hard ballistic plates.

Implementation of the policy directives will further

assist with future logistic planning, control and

management. The directives also identify the

relevant stakeholders required to contribute to

the development of policy regarding the

management of combat body armour.

34

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THE LINKDefence Logistics Magazine

IN THIS ISSUE

Strategic Logistics Reform Program

ISSUE 5 July 2009

to train, fight and win

strengthening communication along the logistic chain

LOGISTICS

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design

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