Troop Support Value Management Program
In-house VM Proposal

Phase |

Discuss idea/proposal
with SC VM PM

Identify potential
savings/benefits
SC VM PM

Prepare
DSCP 2822 —
VM Proposal

SC VM PM and

employee(s

Submit for review by TS
VM PM

Revise }<=> ( Reject )

Submit for review by SC
Director/Deputy

Valid
Project

SC VM PM establishes
project & monitors

OTSA processed by SC for
Submitter(s)



benefits to strategic focus areas (i.e. Warfighter Support, Stewardship and Workforce Develop-
ment) incurred from implementing the VM Project. The following chart is provided for guid-

ance in determining award amounts.

BENEFITS* / SAVINGS AWARD AMOUNT
Low / < $1,000,000 $250 to $450
Low / < $10,000,000 $250 to $450
Low / > $10,000,000 $250 to $450
Medium / < $1,000,000 $450 to $1,000
Medium / < $10,000,000 $450 to $1,000
Medium / > $10,000,000 $450 to $1,000
High / < $1,000,000 Up to $5,000
High / < $10,000,000 Up to $5,000
High / > $10,000,000 Up to $5,000
* Benefits:

Low — limited impact to strategic focus area(s); involves single activity/process
Medium — moderate impact to strategic focus area(s); affects DLA Troop Support
High — significant impact to strategic focus area(s); Agency level or broader scope

NOTES:

(1) The above award amounts are based on the benefit and savings of an implemented VM
Project submitted by a group or individual. For recognizing a group, it is recommended
that the award is apportioned equally or in pro rata shares, as determined by approving

officials.

(2) Approving official(s) may choose to award an amount above or below the amounts listed
above commensurate with the resulting benefits and savings.



Troop Support Value Management Program
In-house VM Proposal

Phase II

Conduct analysis/study of

potential savings/benefits
SC VM PM

v

Perform proposed actions
& measure results
SCVM PM

Validate actual
savings/benefits
SCVM PM

Revise

Conduct follow-on actions
SCVM PM

Monitor & record all
actions SC VM PM

( VMProject completed )

OTSA or SAS processed by
SC for Submitter(s)

Proposal completed

Process Million Dollar
Club Award
DLA HQ



IN REPLY
REFER TO

DEFENSE LOGISTICS AGENCY
TROOP SUPPORT
700 ROBBINS AVENUE
PHILADELPHIA, PENNSYLVANIA 19111-5092

DLA TROOP SUPPORT POLICY STATEMENT
NO. 5 FEB 07 2011

MEMORANDUM FOR ALL DIRECTORS

SUBJECT: DLA Troop Support Value Management (VM) Award Program

DLA Troop Support is required to maintain a Value Management (VM) program that
analyzes the items we acquire and the logistics support we provide, with the goal of reducing
costs and capturing savings associated with improved effectiveness. In order to promote
employee participation and enhance our ability to achieve annual VM cost saving goals, a VM
award program has been established.

The VM award program has two phases. The first phase offers recognition to individuals
or groups that have identified a viable VM candidate project. This encourages participation by
providing prompt acknowledgement and small awards are to be presented regardless of the
project’s ultimate savings. The next phase is designed to address the significance of the project.
This phase considers many factors including, actual savings amount, impact to readiness and
warfighter support and, relatedness to the job/position(s). Adoption of a VM suggestion and the
significance of the savings will result in additional recognition and compensation commensurate
with the VM impact on Troop Support operations. Furthermore, the DLA Troop Support
VMARP compliments the Agency’s “Million Dollar Savings” award program.

Your endorsement of this VMRP policy is appreciated. A timely and meaningful VM
awards program will serve to motivate DLA Troop Support personnel and result in increased
participation and actual cost savings. This will insure the VM program is an integral component
of our "Efficiency Roadmap" and consistent with the Fiscal Year 2011 Director’s Guidance
regarding Resource Stewardship.

R.A. Ellis
Acting Commander

2 Attachments


DSCP Value Management Program
DOD In-House Value Engineering or Value Management Proposal (VEP) (VMP)

Description (item, Initiative, Process, Program, Service or Date Project No.
Nomenclature)

National Stock Number (NSN) if applicable:

Technical Data Sources (Specifications, Drawing No.. Articles, etc.)

|nitiator(s) Office Telephone extension

Concept before proposal applied (Describe original status and function, contract, etc.) Please attach paper if
additional space is needed.

Proposed Concept After VE or VM applied. (Describe proposed change and the basis for overall cost, including

other benefits. Attach additional supporting information, if available, to explain proposal. Please attach paper if additional
space is needed.)

Unit cost before proposal Unit cost before after proposal (estimated)
|Estimated Net Savings ‘Annual Demand (if Known and or applicable)
DSCP Supply Chain VM Program Manager: (Please print name & sign) Date:

(]_ Approved initial phase
{_] _ Disapproved initial phase
|DSCP Supply Chain VM Program Manager's Supervisor: (Please print name & sign) Date:
([]_ Approved initial phase
{_] _ Disapproved initial phase

DSCP VM Program Director: (Please print name & sign) a Date:
[[) Approved initial phase
{_] _ Disapproved initial phase

DSCP Supply Chain Division Chief. (Please print name & sign) : Date:
[1] Approved initial phase |

(]__ Disapproved initial phase |

DSCP Form 2822, Feb 2010 (To be revised every two years)



DLA Troop Support Value Management Awards Process

Implementing the Awards Process

I. PURPOSE: To provide recognition and awards to DLA Troop Support personnel who apply
Value Management concepts to the items we acquire and/or the logistics support we provide, re-
sulting in reduced cost and/or improved effectiveness.

IE PORICY:

A.

B.

The Value Management Awards Program applies to all DLA Troop Support personnel
other than VM Program Managers (PM) or related staff members.

VM Proposals eligible for awards must result in improvement to the value of systems,
equipment, facilities, services, or supplies, if the suggested proposal is implemented. It
will be shown to improve quality, reduce cost, or improve schedules.

. An award nomination shall be processed for a VM Proposal submitted, reviewed and de-

termined to be a valid VM Project (Phase I) with the potential for savings and/or im-
provements. Next, valid VM Projects that are ultimately adopted, resulting in actual sav-
ings and/or improvements (Phase II) are eligible for an additional award. Lastly, any
DLA employee other than VM staff members contributing to the VM program by accu-
mulating over one million dollars in VM savings shall be nominated for the DLA Million
Dollar Club award.

. An audit trail will be maintained by VM Program Offices in each Supply Chain and will

include written evidence that the individual (s) submitting nominations expended effort
over and above that which would be expected in the normal accomplishment of their du-
ties, and at least one of the major disciplines (cost analysis, functional analysis, or evalua-
tion of worth) was applied.

VM awards will be submitted on a DLA Form 2822 for processing after documentation
verifying the VM savings has been completed by the VM PM and senior staff. The
award may be submitted for an individual or for a group. A group award will be appor-
tioned to the nominees equally or in pro rata shares, as determined by evaluating officer.
Employees may submit savings proposals or ideas only to one Supply Chain (SC) VM
Program Office. If identical proposals are received (under the same or different pro-
grams), only the proposal received first will be compensated.

III. PROCEDURES:

A

B.
(08
Dz.

PHASE I BEGINS - Employees should discuss their ideas and proposals with the SC VM
PM.

The SC VM PM will identify the potential savings and benefits of implementing the idea.
The SC VM PM and employee will prepare the VM Proposal via DSCP Form 2822.

The proposal is submitted for review to the Troop Support VM PM.


. The Troop Support VM PM will determine if the VM Proposal meets the VM Awards

Program criteria. (At this point, the proposal can be sent back for revisions, in which
case, the Phase I process will begin again at A., above. Rejected projects will no longer
be considered.)

. A proposal approved by the Troop Support VM PM will be submitted to the SC Director

or Deputy Director for approval. (At this point, the proposal can be sent back for revi-
sions, in which case, the Phase I process will begin again at A., above. Rejected projects
will no longer be considered.)

. PHASE I ENDS - A proposal approved by the SC Director or Deputy Director will result

in the implementation of a VM Project. The SC VM PM will establish the VM Project
and monitor the progress and savings. At this time, the impacted SC shall consider
processing an On-the-Spot Award (OTSA) of $150 for distribution to the employee(s)
submitting the proposal.

. PHASE IT BEGINS — The SC VM PM conducts an analysis/study of potential savings and

benefits of the VM Project, at a time determined appropriate by the SC or Program.

The SC VM PM performs the actions proposed in the VM Project and measures the re-
sults.

The SC VM PM prepares the DSCP Form 4028, reporting the savings realized from im-
plementing the VM Project.

. The SC VM PM validates the actual savings and benefits.
. The Troop Support VM PM will review the savings realized. (At this point, the proposal

can be sent back for revisions, in which case, the Phase II process will begin again at H.,
above. Projects rejected due to lack of cost savings will no longer be considered.)

. At this point, the VM Project Proposal Process is complete. An OTSA or Special Act or

Service Award (SAS) is processed by the SC for the VM Project submitter(s). DLA HQ
will process the Million Dollar Club Award if applicable.

. The SC VM PM conducts all follow-on actions for the VM Project.
. The SC VM PM monitors and records all actions associated with the VM Project.
. PHASE II ENDS — VM Project is complete.

Awards and Recongition

As Phase I of the VM Awards Program Process identifies a viable VM candidate project,

there will be prompt recognition for submission of a viable project. An award of $150 is rec-
ommended for individual(s) responsible for developing a viable VM Project idea.

Phase II of the award recognition process will focus on rewarding employees for their

efforts in a successful VM Project. DLA Troop Support will issue awards to Troop Support em-
ployees to compliment the DLA HQ Million Dollar Club awards program, which is already in
place. The amount of the award will be determined by the total savings and significance of the