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Department of Defense Supply Discrepancy Report Process Transformation Initiative (IL25) Concept 
        - Proposal 

Complete implementation of an integrated Supply Discrepancy Reports (SDRs) process.  The system will include:  a facilitated Web-based entry method for SDRs; routing for web-submissions and logistics transactions according to business rules; any-to-any translation to support unique and standard transaction formats; information exchange between action office and shipper; SDR resolution responses; capture of SDR and response management statistics and assimilation of SDR metrics along with Customer Wait Time/Logistics Response Time in support of perfect order fulfillment.
        - Current Situation

Problem statement: The current SDR mode of operation is characterized by:  Historically paper bound and non-automated; Proliferation of unique systems and web entry tools using different formats; Complex routing rules; Inability to communicate SDR and response effectively across DoD, fostering duplicative point-to-point interface; Inconsistent and incomplete management data 

Each Component (except USAF) operates one or more information system processing SDRs; however, there is only limited ability to communicate this information across the Components. This proposal focuses on interoperability requirements using a central data store as opposed to a decentralized approach. The reporting and capture of SDRs is critical to improving operational efficiencies, improving customer satisfaction, and measuring perfect order fulfillment.
        - Submitted by: Defense Logistics Agency, Mr. James Johnson, Director, Defense Logistics Management Standards Office, ja.johnson@dla.mil, 703.767.0670 and Ms. Ellen Hilert, DoD SDR System Administrator, ellen.hilert@dla.mil, 703.767.0676
        - Champion: Deputy Under Secretary of Defense, Logistics and Material Readiness, Supply Chain Integration (DUSD(L&MR)(SCI)), Col D.C. Pipp, DUSD(L&MR)(SCI), donald.pipp@osd.mil, 703.604.0098
        - OSD Process Owner: DUSD(LMR)SCI

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Department of Defense Supply Discrepancy Report Process Transformation Initiative (IL25) Required Actions
        - Action Approach

Multi-phased incremental approach. 

Phase I IOC January 2004

Phase 2 provides:

Ability to process SDR/response information using standard automated transaction sets (ANSI ASC X12/XML)

SDR/response, completion of integration with Component systems, central data base, and query/reports capability  
        - Policy or Legislative Change
        - DLAI 4140.55/AR735-11-2/SECNAVINST 4355.18A/AFJMAN 23-215, Reporting of Supply Discrepancies 
        - DoD 4000.25-M, Volume 2, Defense Logistics Management System (DLMS)

Defense Logistics Management Standards Office in conjunction with DUSD(L&MR)(SCI)

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Department of Defense Supply Discrepancy Report Process Transformation Initiative (IL25) Benefits
        - Non-Financial Benefits

Cost avoidance- The costs for identifying, investigating, and resolving the discrepancies are high, and significant factors are mail and paper handling costs and materiel holding costs. The savings of $2.74M per year for FY05- FY09 are based on a 1994 Logistics Management Institute analysis and report, “Deficiency Reporting System Functional Economic Analysis Mini-Business Case (AR328LN1, April 1994).  

 Streamlined operations	

 Improved morale	

 Quality of life

 Accelerated decision making	  

 Reduced cycle time	

Is a Management Initiative Decision (MID) appropriate?  No.
        - Estimated Investments and Savings ($M)
| FY04            | FY05  | FY06 | FY07 | FY08 | FY09 |
|-----------------|-------|------|------|------|------|
| Investment Cost | .675K | 0    | 0    | 0    | 0    | 0 |
| Savings         | 0     | 0    | 0    | 0    | 0    | 0 |

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Department of Defense Supply Discrepancy Report Process Transformation Initiative (IL25) Action Plan and Milestones (Pending IPT Finalization)

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Department of Defense Supply Discrepancy Report Process Transformation Initiative (IL25) Key Metrics

SDR Record Count  (Primary Metric)
        - Number of SDR transactions transmitted though DAAS per month
        - Goals:  Establish record, map to action activity format, and forward as applicable
        - Data Source:  DAAS
        - Methodology for Calculating Data:  Count records beginning Jul 04 through Feb 05 (phased implementation)

SDR Web-User Activity (Secondary Metric)
        - Number of SDR actions prepared on-line   per month
        - Goals:  Establish record, map to action activity format, and forward as applicable
        - Data Source:  DAAS
        - Methodology for Calculating Data:    Count SDRs (to include reply/follow-on actions)  beginning Feb 04 through   Feb 05

-, 

BIC Funding and DAASC Service Level Billing

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Department of Defense Supply Discrepancy Report Process Transformation Initiative (IL25) Assessment   
        - Pros

DoD SDR Web:

Standardized business practices, rules, and processes

Accessible to any customer

Eliminates paper; captures all required data at its source, automates the process

Automates Complex routing rules

Allows pre-population of critical data from existing data stores

 SDRs integrated into logistics information exchange mechanisms: 

Supports DoD business process transformation goals

Facilitates improved warfighter readiness by:

Reducing cycle time for the identification and resolution of discrepancies

Enabling Perfect Order Fulfillment measurement

Focusing management attention on areas needing improvement

Any-to-any translation supports modernized (ERP) systems and legacy systems

Centralizes metrics capture and management reporting

Eliminates need for, and proliferation of, duplicative/similar non-standard efforts

Saves DoD an estimated $2.74M annually
        - Cons

Does not include funding to support changes to Service systems 

Initiative requires $.675K to jumpstart
        - PFB Recommendation:  Approval from the BIC EDs

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Points of Contact 
        - ARMY:
        - Patrice Burklund, TACOM
        - DSN 793, Com 309 782-5396 
        - burklundp@ria.army.mil 
        - NAVY: 
        - Ms. Emily Burt-Hedrick, NAVSUP 
        - DSN 430, Com 717-605-7513
        - Emily.burt-hedrick@navy.mil
        - AIR FORCE:
        - Tsgt James Beaudin, AF/ILGD 
        - DSN 225, COM 703-695-2118
        - james.beaudin@pentagon.af.mil
        - USMC:
        - Shelley Godwin, PM-LSS/PT-ISI
        - DSN 567, Com 229-639-7212
        - godwinsl@mcsc.usmc.mil 
        - DLA: 
        - Ms. Marge Sullivan, DLA J-373
        - DSN 427,  Com 703-767-2527
        - marge.sullivan@dla.mil
        - DAASC: 
        - Ms. Dawn Kohlbacher, DAASC Program Manager
        - DSN 986,  Com 937-656-3783
        - Dawn.Kohlbacher@dla.mil
        - DSCA:
        - Ms. Kathy Robinson, DSCA PPP
        - DSN  329, Com 703-601-4368
        - kathy.robinson@dsca.mil
        - GSA:
        - Jim Stroup, FSS 6FR
        - Com 816-823-3060
        - jim.stroup@gsa.gov
        - CHAMPION:  

	OSD: 
        - Col D.C. Pipp, DUSD(L&MR)(SCI)
        -  DSN   Com 703.604.0098
        - donald.pipp@osd.mil

      DLMSO:
        - Ms. Ellen Hilert, DoD SDR System Administrator, DLA J-6411
        - DSN 427, Com 703-767-0676
        - ellen.hilert@dla.mil

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BACKUP

SLIDES

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Cost 

Define/map = $67,500

Requirements = $135,000

Database = $101,250

Policy = $33,750

Build = $270,000

Train = $67,500

Total = $675,000*

Focus...building/training...product delivery

Department of Defense Supply Discrepancy ReportProcess Transformation Initiative

* Inclusive of travel and administrative cost
| Program Manager                    | $110     | 250      | $27,500  |
|------------------------------------|----------|----------|----------|
| Software Eng/Analyst Lvl IV        | $99      | 1,350    | $134,000 |
| Software Engineer/Analyst Lvl 3    | $72      | 1,850    | $133,000 |
| IT Subject Matter Consultant Lvl 3 | $85      | 2,300    | $195,500 |
| IT Subj Matter Cons Lvl 1          | $66      | 2,500    | $165,000 |
| Total Hours and Labor              | 8,160    | $655,000 |
| OTHER DIRECT COSTS                 |
| Travel                             | $10,000  | $10,000  |
| Total Other Direct Costs           | $10,000  | $10,000  |
| Total                              | $675,000 |

Rough Order of Magnitude (ROM)

Labor Category

$/hour

Hours

Total

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BMMP Compliance

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BMMP Compliance (cont’d)

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Department of Defense Supply Discrepancy Report Process Transformation Initiative (IL25) Status Report
        - Current Situation
        - Performance to achieve desired outcome:  
        - rating and explanation 
        - Schedule:  rating and explanation
        - Cost:  rating and explanation (if applicable)
        - Key actions:  (recovery plan or focus areas)
        - Recommended BIC Action:
        - Provide the Champion’s recommendations for BIC action
        - highlight issues requiring high-level involvement

G

Y

R

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