1. Army Material Command,
Logistics Modernization Program
Anthony Zelinski,
US Army Logistics Modernization Program
Horace Dick, CSC
US Army Logistics Modernization Program

2. Agenda
LMP Background
Enterprise Vision
Organizational Alignment
Challenges
Working the Solution
Transition
SAPPHIRE / OR3824 Page 2

3. Why LMP?
Key
Focus business systems modernization on supporting component of
the warfighter the Army
• Improve business processes Logistics IT
• Decrease operational cost and cycle times vision
• Improve the accuracy and timeliness of information
Remaining on legacy is not a viable option
• Cost to support legacy systems are escalating
• Legacy systems are rapidly aging
To reduce redundant and stovepipe IT investments
• Commodity Command Standard System (CCSS)
• Standard Depot System (SDS)
• Bridges and uniques
Legacy systems cannot meet requirements of:
• Federal Financial Improvement Act (FFMIA)
• Business Enterprise Architecture (BEA)
• Standard Financial Information System (SFIS)
• Radio Frequency Identification (RFID) / Unique Identification
(UID)
• Net-centricity
SAPPHIRE / OR3824 Page 3

4. LMP Through the General’s Lens
LMP Through AMC General’s (CEO) Lens
Mission: Support Warfighter Readiness
Logistics
Modernization
Program
Effective Cost-Effective
Reliably Predict Single Version Continuous
Consumable and and Efficient IT
Material Needs of Truth Improvement
Reparable Orders Service
• Common, accurate, • Financial integrity • Focus on core business
real-time operating view • Integrated planning and execution functions
• Rapid decision making • Precise forecasting • Single version of truth
Results: Improved Warfighter Readiness
Right Material, Right Place, Right Quantity, at a Moment’s Not
SAPPHIRE / OR3824 Page 4

5. AMC Scope and Complexity
AMC Operations Customers and
Suppliers Inventory and Repair Depot End Consumers
• OEMs
• Air Force • Marines
• DLA 149 Fixed Locations
• Army • Navy
>1,000 Dynamic Locations • DLA • Other
• Services Govt.
59 CONUS
• Army Depots 38 Countries Installation and
Direct Support
• Plants 49,000 Civilians
Unit Support
• Arsenals 1,500 Military (Warfighters)
50,000 Vendors 6,000,000 Items 1,000,000 Customers
$40B Goods/Services
General Electric Wal-Mart
• Repairable product supply chain • Consumable product supply chain
• 100 countries • 1,300 stores in nine countries
• Cost of goods sold—$38B annually • 100,000 items
Analogous to a large multinational conglomerate, multiple businesses
(Commands), diverse product portfolios, multiple complex supply chains —
with added challenge of customer (Warfighter) readiness for survival
SAPPHIRE / OR3824 Page 5

6. The LMP Solution
Logistics Chain Planning
Collaboration
• Demand Planning • Long Term and Material • Project Systems and
• The LMP Team was built from • Distribution Planning Requirements Planning Budget Planning
experts from across CSC, SAP,
dozens of external partners and Acquisition and Distribution
subject matter experts from across
Order
AMC Management
Buy Distribution
• Full functionality implementation
approach • Army Search Matrix Industrial Base • Inventory
and Penetration Management
Unprecedented ERP Logic Operations • Warehouse
• Merged Solution • Real-time Global
Available-to-Promise
Management
• Single Stock Fund
Make
Core R/3, Public Sector Solution • Back order • Environment,
and the Aerospace and Defense Processing
• MILSTRIP sales
Health, and Safety
Solution order processing Fix
• New Dimensions Products.
Advanced Planner Optimizer • Acquisition
• Manufacturing and Remanufacturing
(APO) Data and Resource Requirements Planning
• National Maintenance Management
Business Warehouse (BW) Reporting • Base Operations and Plant Maintenance
Strategic Enterprise Management • Quality Management
• Human Resources
(SEM)
Single Version of the Truth, End to Budget and Finance
• General Accounting DFAS • Cost Management and Real • Cost Accounting
End Integration and Funds Management Estate (Facilities) Management • Budget Formulation
Product Lifecycle Management
• Provisioning • Packaging and Freight • Ammunition Support
• Cataloging • Maintenance Engineering • Bills of Material
SAPPHIRE / OR3824 Page 6

7. SAP® Solution Components
Sales and Distribution (SD) Financial (FI)
• Sales order processing • General ledger
• Pricing SD FI • Special purpose ledger
• Shipping MM CO • Accounts payable
• Billing • Accounts receivable
• Credit PP
PLM
R/3 AM • Report generator
• Fund Management
Materials Management (MM)
• Purchasing
• Inventory management
QM 4.6C PS
Controlling (CO)
• Cost Element Accounting
• Invoice verification PM WF • Cost Center Accounting
• Warehouse management • Profit Center Accounting
HR IS • Internal Orders
Production Planning (PP)
• Bill of Materials (BOM) • Profitability Analysis
• Work centers and routings Project Systems (PS)
• Master production scheduling • WBS Elements
• Materials requirements planning • Network Orders
Product Lifecycle Management
(MRP)
(PLM)
• Production Orders EP BI
• Product Data Management
Quality Management (QM) • EH&S
Plant Maintenance (PM/CS) Workflow (WF)
SEM SCM
• WS Repair Project Planning Industry Solution (IS)
• WS Repair & Overhaul Project • Public Services
Execution • Aerospace & Defense
• Merged Solution
Human Resources (HR)
• CATS
• Personnel Administration
SAPPHIRE / OR3824 Page 7 Copyright © COMPUTER SCIENCES CORPORATION, 2005-2006.

8. LMP Enterprise Integration
•ATAAPS
• SARSS
Technology Advances •SOMARDS DFAS Retail Gateway
DCMA •MOCAS
•DCPS
USER
Web browser screens.
ed
•BSM
Single sign-on. er
LOGSA
Information readily available. ne •SAMMS
n gi Finance &
DLA
Real-time information.
Accounting Procurement
ee
Maintenance
Mgmt
Facility &
Fleet Mgmt
•DSS
Data redundancy standards. R Supply
LMP
Inventory
- Chain
•LIDB Mgmt
Mgmt
•FLIS/CRS
Real-time on-screen reporting. DAASC
Human
Customer
Resources
Mgmt
AIT Programs
& Projects
TECHNOLOGY
Management
Information &
AEPS
Manufacturing
Decision Planning
Support
DoD •AIR FORCE
Robust scalable architecture, 24x7
Warehousing
Planning &
Budgeting Property
Mgmt
reliability. SERVICES •NAVY
Thin client technology. •OTHERS
INTERIM
Relational global data structure – OTHERS
global configuration, with local CCSS
OTHERS
flexibility. and SDS
Centralized configuration
management.
COTS enterprise application
integration.
70+ systems interfacing with LMP
Army enterprise integration achieved with the proper
solution of architecture, functionality and technology
SAPPHIRE / OR3824 Page 8

9. SAP® Customer Competency Center Certification
Five Major Support areas assessed
against SAP’s worldwide competency
center database:
• Global Strategy and Service Level
Management
• Support Desk Management
• Management of SAP Technology
• Support Process Management
• Software Change Management
Initial certification achieved in 2005 and
re-certification achieved in 2007
Companies establish SAP Competency Centers as a best practice to
Companies establish SAP Competency Centers as a best practice to
support their SAP business solutions
support their SAP business solutions
SAPPHIRE / OR3824 Page 9

10. Enterprise Vision
Single Army Logistics Enterprise (SALE)
“This plan establishes a foundation for leaders and managers to guide them towards
a Single Army Logistics Enterprise. We have a huge challenge, but together we can
make it a reality. The Army cannot lose focus on the ultimate Logistics Domain IT
objective…SUPPORT THE WARFIGHTER.”
- LTG Ann Dunwoody, Strategic Plan for Army Logistics Domain IT Transformation – August 2007
SAPPHIRE / OR3824 Page 10

11. Enterprise Vision
Objective: Robust automation tools to support Army missions and enable the best
decision in relation to: Industrial Operations capacity, cost, and schedule management
Industrial Base Modernization
Phased Part of Army Logistics
Approach Providing: Modernization Program
• RFID/AIT Capability To Provide Visibility –
• Providing UID Parts Marking and Readers Single Army Logistics
• Shop Floor Tracking
Enterprise
• Enable Technical Data Records Management
Master Production Scheduling
Providing Capacity & Material Requirements Planning:
• Lean Operations
• Ability to Re-Plan In Hours vs. Week
• Immediate Visibility of Work-In-Progress
• Proactive Planning vs. Reactive
Logistics Modernization Program Foundation Providing:
Commodity Commands Industrial Sites
• Improved Demand and Supply Chain Planning • Accurate Financial and Logistical Records
• Financial and Logistic Integration • Improved Workloading Forecast
• Common Operating Picture Across Supply Chain • Cost Reduction for materiel used in production
• Ability To Share Data With DLA and Industry Base process
• Reduced Re-Planning
• Improved On-Time Delivery
SAPPHIRE / OR3824 Page 11

12. Organizational Alignment
Maximizing ERP Investment
DEMAND Make/Repair
Plan
Thru Make to stock/order
SUPPLY
Deliver
Customer PLANNING PRE-PRODUCTION EXECUTION CLOSE-OUT
ORDERS
Plan to Make
P1.1/P2.1/ Master Scheduling/ Production
P3.1 Capacity Planning Planners
Process
Project Plan to Make Material
Authorization P1.1/P2.1/
Expediters Release to
& Release P3.1 Plan to
Delivery
Planned Source Schedule/Produce M1.6/M2.6/M3.7
Workload P2.1/P2.2 M1.1/M2.1/M3.1
P2.3/P2.4 M1.3/M2.3/M3.4
Funded/
Unfunded Planned
Make Master MRP Production Shop Floor
Labor &
Production
Production Program
Repair BOMs/ RUNS
Orders
Created &
Execution Reporting
Order
Close-out
Close-out
Routes Data (Work Centers) (Type 8s)
Scheduled
Unplanned Source
Workload
(Order New)
Work
Centers Planned
Data Purchase
Plan to Material Rcvd Deliver Make/
Orders Stock/Engineer
Source & Staged
Created & D1/D2/D3/D4
P2.1/P2.2 Scheduled
P2.3/P2.4
• Army
FEED BACK to PLANNING DATA
• Other Services
SAPPHIRE / OR3824 Page 12 Copyright © COMPUTER SCIENCES CORPORATION, 2007.

13. Challenges
MRP / ERP Evolution
Closed
MRP Loop MRP ERP
(Late 60’s) MRP II (90’s)
(70’s) (80’s)
Source: ERP Making It Happen, Thomas F. Wallace and Michael H. Kremzar
SAPPHIRE / OR3824 Page 13

14. Challenges
Before ERP Education
Silent
Education was
Education was
Majority Mandatory, not
Mandatory, not
Elective in
Elective in
Companies that have
Companies that have
Naysayers Enthusiasts Achieved Class “A”
Achieved Class “A”
After ERP Education ERP Certification
ERP Certification
Silent
Minority
Naysayers Enthusiasts
Source: ERP Making It Happen, Thomas F. Wallace and Michael H. Kremzar
SAPPHIRE / OR3824 Page 14

15. Challenges
The Goal: Achieving World Class Performance (By the Numbers)
Executive
Management
Planning
Operations
Management
Planning
Operations
Management
Execution
Copyright © COMPUTER SCIENCES CORPORATION, 2005-2007.
SAPPHIRE / OR3824 Page 15

16. Working the Solution
Prototype Inputs and Outputs
Pilot & Full
Education Training Baseline Prototype Deployment
Industry Business New
Team
Best Goals Enhance
Business
Solution Design
Practice & SDL Operating
Knowledge
Knowledge Objectives Model
Test
Continuous Process
Improvement
Copyright © COMPUTER SCIENCES CORPORATION, 2006.
SAPPHIRE / OR3824 Page 16

17. Working the Solution
Moving from the Informal to the Formal System (Valid
Schedules) is the key to ERP Business Benefits Realization
Informal System Formal System Business Benefits
(Order Launch & Expedite) (Valid Schedules) (Value / Results)
• Reorder Point • Time-Phased Order Point
Inventory
• Estimate of Demand • Actual Calculated Demand
Inventory Obsolescence
• Excessive Shortages • Minimal Shortages
Material Costs
• “Hot List” Priorities • Order Due Date Priorities
Freight Premium Costs
• Front End Loaded Schedules • Level Loaded Schedules
Cycle Times (Make/Buy)
• “Funny” Numbers • Reliable / Accurate Numbers
Overtime Costs
• Lack of Accountability • Single Point Accountability
• Excessive Mth/Yr End Overtime • Level Loaded Capacity
New Business
• Long Cycle Times • Short Cycle Times
Workforce Productivity
• Unreliable Customer Promises • On-Time Shipments
Readiness / Ao
• Poor Operational Performance • High Operational Performance
SAPPHIRE / OR3824 Page 17 Copyright © COMPUTER SCIENCES CORPORATION, 2005-2007.

18. Transition
Today vs. Tomorrow
Longer Cycle Excess Materiel Not
TODAY
Expediting as a Times The Right Materiel
Way of Life
Idle Resources, Over ) Reduced
Used Resources PS Cycle Time
(M
Excessive Less
Amount of Materiel/Excess
Meeting Time Mostly Execution
Lower
Not Planning
R P) Re-planning in
(C Costs
Hours Not Weeks
Little if Any
Management Visibility
Resources Load Work Executed
) Balanced
RP to Plan
(M
Work Started That Parts Shortages Known Early
Will Have to be Put Work Released
Enough to Address
Aside at Best Time
)
n ing
Plan Problems Planned For
and Job and Asset Status at Not Reacted To
D em Fingertips (Readiness)
( LEAN Operations
TOMORROW
SAPPHIRE / OR3824 Page 18

19. Points of Contact
Anthony “Tony” Zelinski
• anthony.zelinski@us.army.mil
• 570-954-9913
Horace Dick
• hdick2@csc.com
• 856-988 4000
SAPPHIRE / OR3824 Page 19

20. Questions?
SAPPHIRE / OR3824 Page 20

21. Thank you!
SAPPHIRE / OR3824 Page 21

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