Transcript Hidden Cost of Supportability

SOLE – The International Society of Logistics
Introduction to Logistics
and
Integrated Logistics Support (ILS)
Presented to University of St. Thomas
by Chapter 6 District 6 Minneapolis – St. Paul
April 30, 2003
Logistics in History
Historically, Army quartermasters have
been charged with:
Examples:
•
Feeding soldiers (consumables, preparation service)
•
Providing fodder for horses (foraging, transportation)
•
Procuring uniforms, equipment, weapons, and
ammunition (supply and repair management)
•
Supporting aircraft, ships, tanks, guns, vehicles
(fuel, spare parts, repair, transportation, storage,
interoperability)
Scope: Manufacturing vs. After-Sale
75 % of U. S. employment is services:
21 % of employment is goods
producing:
– Construction
– Manufacturing
4 % of employment is extraction:
– Agriculture
– Mining
Source: Statistical Abstract of the United States,
1997 for 1990
Emphasis: Products vs. Systems
17.8 % of Gross Domestic Product is
manufacturing (1990):
– Consumables
– Non-repairable products
– Repairable (consumer) products
– Repairable (industrial, complex) products
•
•
Mobile (self-propelled) vs. Installed
Custom Engineered vs. standard product
Product Life Cycle
•
Product life cycle showing net profit highest in
mature phases.
Systems Structure
•
System (prime contractor)
– Subsystem - product (subcontractor level)
•
Sub-Subsystem
– Component
» Replaceable Assembly / Part
» Application-Operating System / Software
Support Concepts •
Product Life Cycle Management
•
Life Cycle Cost (LCC)
•
Service Engineering (products)
•
Integrated Logistics Support (ILS)
•
Logistics Engineering (complex systems)
Product & System
Life Cycle Management
Product
System
•
Development
• Pre-Concept
•
Introduction
• Concept
•
Growth
• Demonstration and
Evaluation
•
Maturity
• Full Scale Development
•
Decline
• Production and Operation
• Phase Out
Concept - Life Cycle Cost (LCC)
•
(1) All costs associated with the
system life cycle,
•
(2) The total cost of acquisition and
ownership over the life cycle,
•
(3) Approach to costing that
considers all costs, and an
•
(4) Approach whereby the value of
different concepts can be made by
comparison of different LCC
estimates and the concept with the
minimum LCC is preferred.
Concept - Support Elements
Logistics Elements
Support
Maintenance Planning: Product maintenance plans.
Design Interface: Engineering, structure, ECOs, Field
Change Orders, updates, upgrades.
Manpower & Personnel: Field service engineers, technical
support.
Technical Data: User manuals, service manuals,
dealer support, web services
updates.
Support Equipment: Field service equipment related to
product.
Training & Training User training, field service
Support: engineer, technical support training.
Support Concepts – Elements (cont’d)
Logistics Element
Support
Computer Resources: After-sales customer services, data
bases, web sites.
Supply Support: Service parts, accessories, repair
parts, repair points and
refurbishment.
Packaging, Handling, Packaging of supply items,
Storage, & distribution stock points,
Transportation (PHS&T): distribution networks.
Facilities: Product’s impact on existing
facilities; new facilities.
Integrated Logistics Support (ILS)
“A disciplined, unified and iterative approach
to the management and technical activities
necessary to (1) integrate support considerations
into system and equipment design; (2) develop
support requirements that are related consistently
to readiness objectives, to design, and to each
other; (3) acquire the required support; and (4)
provide the required support during the
operational phase at minimum cost”.
Logistics Engineering
“Those basic design related functions implemented as
necessary to meet the objectives of ILS.”
 Initial definition of system support
requirements
 Development of design input criteria
 Evaluation of alternative design
configurations
 Determination of resource requirements
 Ongoing assessment of support
infrastructure
Logistics Definition #1
“The process of planning, implementing, and
controlling the efficient, effective flow and
storage of goods, services, and related
information from point of origin to point of
consumption for the purpose of conforming to
customer requirements”.
.
The professional organization for individuals who have an interest in logistics management
Logistics Definition #2
“The art and science of management,
engineering, and technical activities
concerned with requirements, design, and
supplying and maintaining resources to
support objectives, plans, and operations.”
Logistics Definition #3
“Logistics is the science of planning and carrying out the
movement and maintenance of forces. In its most
comprehensive sense, those aspects of military operations
which deal with: (a) design and development, acquisition,
storage, movement, distribution, maintenance, evacuation,
and disposition of materials; (b) movement, evacuation, and
hospitalization of personnel; (c) acquisition or construction,
maintenance, operation, and disposition of facilities; (d)
acquisition or furnishing of services.”
North Atlantic Treaty Organization (NATO)
Affordability
•
Affordability is made up of:
– Schedule
•
Affects Cost when compressed
– Performance
•
Affects cost by quality required
– Cost
•
The driver in affordability
Affordability
•
Where are the major costs a product
Life Cycle
– Design/Development
– Procurement/Manufacture
– Support
– Disposal
Affordability
•
Costs of Life Cycle
Affordability
•
Methods of estimating costs
– Life Cycle Cost (LCC)
•
Costs to design, manufacture, use and dispose
of a product
– Total Ownership Cost
•
•
LCC plus costs to recruit, train and support the
product operating personnel
Design to Cost
– Working to the amount of funds available
Affordability
Affordability
•
Support Factors Creating Costs
– How many products
– Where and how many sites
– How many products at each site
– How is repair accomplished
– How many people are needed to repair
– What training is needed by the maintenance people
– What repair parts are needed and how many
– How fast can failed units be repaired
– Repair/support equipment is needed
Affordability
•
How is support designed into the
product
– Analysis of the design for:
•
•
•
Maintainability – How fast can it be repaired
Reliability – How long will it work without failing
Availability – Is it available when needed
Affordability
•
How is the lowest LCC cost achieved
– Tradeoff studies
•
Design tradeoff
– For ease of repair and cost of repair parts
•
Manufacturing tradeoff
– For less environmental cost at disposal
•
Support tradeoff
– Where to repair and at what level (O,I,Depot)
Affordability
• Imbalance between “cost” and “System Effectiveness”
Life Cycle Cost
COSTS
System Effectiveness
Research & Development
Production & Construction
System Operation
Performance & Effectiveness
Reliability, Maintainability & Supportability
Maintenance & Support
Production & Disposability
Retirement & Disposal
System Quality
Other Technical Factors
Affordability
•
Extra costs created by lack of support
analysis
– Peculiar support equipment
– Special Tools
– Test equipment
– Training
– Support of support equipment
Affordability
•
Conclusion
– Supportability is a main factor in the cost of
owning a product
– The most efficient way to get to the lowest
LCC is analysis of the design
Design and Supportability
The tale of four vehicles
Measures of Logistics
• Reliability
• Maintainability
• Availability
Reliability
•
•
How often a thing breaks. Expressed in
failures/unit of measure.
Examples
– 385 failures/million hours of operation
– 68 failures/100,000 miles
– 7 failures/million cycles
Maintainability
•
The ease with which an item is repaired
•
Includes time to diagnose the problem,
fix the problem and verify the fix
•
Usually expressed as mean time to
repair
Availability
•
•
The amount of time a piece of
equipment is available for use.
Availability affected by
– Time equipment in for service
– Time equipment in for repair
Availability & Support Cost
•
High Reliability +
•
High Maintainability =
– High availability
– Low support cost
Technology Changes
•
Emissions standards necessitated
– Fuel injection
– Electronic distributors
– Hot spark plugs
– Three and four valves/cylinder
– Mass air flow sensors
– Oxygen sensors
– Exhaust gas regulators
Scheduled Maintenance
Comparison
•
1978 Omni (1.7 Liter)
•
1998 Cirrus (2.0 Liter)
•
Change Coolant
30 K miles
•
Change Coolant
36 K miles
•
Change Oil & Filter
3 K miles
•
Change Oil & Filter
3 K miles
•
Change Air Filter
30 K miles
•
Change Ail Filter
30 k miles
•
Change Spark Plugs
15 K miles
•
Change Spark Plugs
30 K miles
•
Ignition Timing
15K miles
•
Ignition Timing
N/A
•
Replace PCV
30 K miles
•
Replace PCV
30 K miles
•
Service Trans
15 K miles
•
Service Trans
15 K miles
•
Plug Wires
As needed
•
Plug Wires
60 K miles
•
Replace Belts
As needed
•
Replace Belts
60 K miles
•
Replace Timing Belt
60 K miles
•
Replace Timing Belt
60 K miles
•
Change Fuel Filter
15 K miles
•
Change Fuel Filter
N/A
Cost of Repair (Fuel System)
Vehicle
Component Pt Cost
Hours
Lbr Rate
Lbr Cost
Tot Cost
1978 Omni, Carb
1.7 Liter, 4 Cylinder
Fuel Filter
Fuel Pump
$ 3.00
$ 50.00
0.3
0.5
$94.00
$94.00
$ 28.20
$ 47.00
$ 31.20
$ 97.00
1998 Cirrus, Inject
2.0 Liter, 4 Cylinder
Fuel Filter
Fuel Pump
$ 27.00
$ 215.00
0.7
1.4
$94.00
$94.00
$ 65.80
$ 131.60
$ 92.80
$ 346.60
1998 Escort, Inject
1.9 Liter, 4 Cylinder
Fuel Filter
Fuel Pump
$ 16.00
$ 255.00
0.6
0.8
$94.00
$94.00
$ 56.40
$ 75.20
$ 72.40
$ 330.20
1998 Cavalier, Inject
2.2 Liter, 4 Cylinder
Fuel Filter
Fuel Pump
$ 19.00
$ 457.00
0.7
1.8
$94.00
$94.00
$ 65.80
$ 169.20
$ 84.80
$ 626.20
Fuel System Maintenance Cost Over
Life of Vehicle
Vehicle
Task
Cost
Freq
Total Cost
1978 Omni
Change Fuel Filter
Change Fuel Pump
$ 31.20
$ 97.00
1/15 K miles
1/75 K miles
$ 310.20
$ 194.00
$ 504.20
1998 Cirrus
Change Fuel Filter
Change Fuel Pump
$ 92.80
$ 346.60
1/150 K miles
1/150 K miles
$ 92.80
$ 346.60
$ 439.40
1998 Escort
Change Fuel Filter
Change Fuel Pump
$ 72.40
$ 330.20
1/30 K miles
1/150 K miles
$ 362.00
$ 330.20
$ 692.20
1998 Cavalier
Change Fuel Filter
Change Fuel Pump
$ 84.80
$ 457.00
1/30 K miles
1/150 K miles
$ 424.00
$ 457.00
$ 881.00
When Things Go Wrong
Fault
Lens separated from
Parts Cost
Labor Cost
Total Cost
$75.00
$47.00
$122.00
Heat/AC valve broke
$150.00
$600.00
$750.00
Premature spark plug
$48.00
$200.00
$248.00
$300.00
$94.00
$394.00
fog lamp
wearout
Headlight gasket
separation
Automotive Design Trends
•
Longer vehicle life (150 K miles)
•
High reliability for critical components
•
Low reliability for non critical components
•
Minimal preventive maintenance
•
Built in diagnostics
•
Fewer repair parts, more assemblies
•
Poor maintainability
Effect on Consumers
•
•
•
•
•
Few critical component failures
Several non critical component failures
High parts cost
High labor cost
Support costs escalate after 100k miles
What can we do?
•
•
•
•
•
•
Be aware of hidden vehicle support cost
Read consumer type evaluations
Look for accessibility of components
Talk to mechanics
Ask dealer for scheduled maintenance
costs.
Complain about support costs
Logistics Engineering and Support Engineering
Questions
???