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Show WDWjpDifilft aaa by Gene Hathenbruck Logistics Management director Some say the command has created a monster, while others reflect on past events and say this too shall pass. Still others toil away daily trying to understand their part in any or all of these command-wid- e changes. I'd like to take this opportunity to discuss some of the command's changes related to two of the business areas. Also, I want to explain some terminology associated with them and share the vision of the Home Office for Materiel Management which has a relationship to both the Product Support Business Area PSBA and the Supply Management Business Area Ill The goal with the development of the. business area concept is to identify costs related to the output of all products and services in the command and attribute them Ilflllli! to a specific business iliilll area Gene Hathenbruck SMBA. The goal with the development of the business area concept is to identify costs related to the output of all products and services in the command and attribute them to a specific business area. We need to be able to measure the cost of our outputs if we expect to reduce those costs and improve support to our customers. Although difficult, this has long been the goal of both the SMBA and PSBA. Part of the confusion lies in the close relationship that exists between these two business areas. The PSBAhas been identified as the business area responsible for acquisition, fielding, modification and sustain-meofAir Force programs. Its important to remember that little of the PSBA mission can be accomplished without support nt items and equipment. Conversely, the sole reason the SMBA exists is to provide the parts and equipment needed to support weapon systems worldwide. This is at the heart ofthe overlap between these two important business areas. The question has always been where the boundary lies between the PSBA and SMBA and which expenses belong to which business area. A working group, which includes the three remaining air logistics centers and Air Force Materiel Command headquarters, has established the boundary, which allows for the separation of costs between these two areas. It has been determined that if an activity or process exists at the weapon system level or in some way supports the integration of weapon system components, the associated cost would be part of the PSBA expense. But if the process is part of the supply chain management and is at the Line Replaceable UnitShop ReplaceableUnit LRUSRU ' level, then those expenses would be part of the SMBA. This definition for SMBA would include LRUs and SRUs that are currently Supply Management Activity Group funded as well as these exempt SMAG from stock funding, such as management and equipment items. Additionally the costs for SMBA should not just include wholesale item management functions but the whole range of critical processes such as buy and repair source qualifications, engineering data, deficiency report investigations, source screening, commodity technical order maintenance and initial provisioning when they are level. This accomplished at the LRU-SRdefinition should clear up alot of questions regarding the distribution of costs for such things as manpower, supplies, equipment and TOY between business areas. All this effort is focused on reducing the cost paid by our customers for the output products and services we provide because "if you can't count it, how do you know that you are getting better?" In this case, if you don't know the accurate cost by business area, then how will we knowwhen we have made an improvement that will result in U savings to the customer? Another change occurred at the center when the Logistics Management Directorate came into existence last November the stand up of the Home Office for Materiel Management. The Home Office is a matrix organization. Under this management style, the Wholesale ItemMateriel Managers in die 2010 skill series are under the supervision of a Home Office in the LG Directorate and matrixed back to the product directorates to support the supply chain management process. This chain was intended to provide several improvements both for the employees and the product directorates. First, with the increasing need for an integrated product team to support customer requests, the 2010 skill has lost some of the unique training and career development required to maintain a vital and effective workforce. With the Home Office concept, the command intends to redevelop promotion opportunities and career development for these crucial skills. Second, having all item management and organic production management specialist skills under one branch organiza- strated professionalism during Operation Fox. You have patrolled the danDesert Secretary of Defense gerous skies over Iraq. You have saved year on the third Saturday of May, lives providing relief and rescue in the wake takes time out to honor you of Hurricane Mitch. And in the Balkans, men and women of America's you have stood against oppression and for armed forces. Armed Forces Day serves a our interests and ideals. Time and time very important purpose by reminding all again, you have met every test and overAmericans of your willingness to serve and come every challenge with skill, professacrifice to protect our nation's freedom. sionalism and dedication. Celebrations and events will take place Because of you, America remains strong in communities throughout the United and secure. This past year, perhaps more than any in States as citizens gather to expresses their recent memory, your skills and commit- profound gratitude to you, your families ment have been tested. You have demon and the communities that support you. Each ever-changi- Quality Systems for America's Air Force Hilltop Times Published by MorMedia, Inc., a private firm in no way connected with the U.S. Air Force, under exclusive written contract with Hill AFB. This commercial enterprise Air Force newspaper is an authorized publication for members of the U.S. military services. Contents of the Hilltop Times are nio ALCs to Ogden ALC will create a huge ng honor Each and every day, the work you do helos soread the blessings of freedom and democracy to people around the j&siKSVM. world. Whether you serve in the Army, Navy, Marine Corps, Air Force or Coast Guard, Armed Forces Day is vour dav. It is a day when you gjjffi receive the gratitude and acknow- ledgement you so richly deserve. I salute your achievements and your selfless service. By your dedication and deeds, you have earned the honor, respect and gratitude of your fellow Americans "Air Force people building the world's most respected Air and Space Force nrjrL grams from Sacramento and San Anto- demand for a trained and flexible workforce. As a matter of fact, the command has renewed the Palace Acquire program, and as of tliis printing, Ogden has 11 item manager Palace Acquire interns on board. Finally, the Business Area concept has driven and will continue to drive the requirements for better and more consistent processes, which will help control or reduce costs. With Home Office oversight, the command intends to provide more comprehensive and coordinated guidance on the functions in the Supply Chain Management Process. It is our plan with the Home Office for Item Management that over the next few months the impact of a focused training plan and career development opportunities will dramatically improve this center's ability to tackle the future. Roger L. Kirkham, professor and consultant, stated "Without change, there can never be improvement." Certainly in the Air Force and within AFMC, the opportunities for improvement are almost withtion in the Logistics Management Directorate out end. I encourage each of you to better will provide both added capability for cross understand and use die Business Area constructraining and career broadening to these cepts and Home Office management series and give the organization flexibility ture to help us build a better and more workload vibrantfutureforthe Ogden Air Logistics to adjust to an Center and the U.S. Air Force. requirement. 'You have earned, the by William S. 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