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This chart is a classroom aid for Defense Acquisition University students. It provides a notional illustration of the interfaces among the three major decision support systems used to develop, produce, and field a system for national defense.
A 2010 review of 96 defense acquisition programs showed average delivery rates are 22 months behind schedule and the cumulative cost growth exceeded $296 billion. With budget cuts looming, a small window of opportunity exists to enact reforms improving the health and solvency of the defense acquisition portfolio. First, we must leverage the technology investments made into collaborative software suites such as product lifecycle management (PLM) to align the requirements, design, engineering, logistics, maintenance, and operational data environments into one comprehensive activity. Implementing a PLM strategy will present cost-saving opportunities through faster information access, improved data reuse, social networking, and virtual collaboration and testing. PLM systems have the ability to capture and organize vast amounts of data. Because through human interaction data becomes knowledge, lean product design is a philosophy that can change how we think, learn, use, and build up on that knowledge. By going beyond merely attacking waste by finding a balance between waste reduction and value addition, total ownership costs can be reduced drastically. These reforms have the ability to fundamentally change how we design, build, and maintain the fleet, making the defense portfolio solvent and thus continuing to fulfill the needs of the warfighter.
Performance Based Logistics (PBL) is the preferred Department of Defense (DoD) product Support strategy to improve weapons system readiness by procuring performance, which capitalizes on integrated logistics chains and public/private partnerships. The cornerstone of PBL is the purchase of weapons system sustainment as an affordable, integrated package based on output measures such as weapons system availability, rather than input measures, such as parts and technical services. The Quadrennial Defense Review (QDR) and /the Defense Planning Guidance (DPG) directed the application of PBL to new and legacy weapons systems. PBL Implementation is also mandated by DoD Directive 5000.1, The Defense Acquisition System, May 12, 2003. This guide is a tool for Program Managers (PMs) and Product Support Managers (PSMs) as they design product support strategies for new programs or major modifications, or as they re-engineer product support strategies for existing fielded systems. It presents a method for implementing a PBL product support strategy. PBL delineates outcome performance goals of systems, ensures that responsibilities are assigned, provides incentives for attaining these goals, and facilitates the overall life cycle management of system reliability, supportability, and total owner ship costs. It is an integrated acquisition and logistics process for providing weapons system capability.