1 CAPT Larry Olsen Deputy Commander MARMC 16 June 2004 Mid-Atlantic Regional Maintenance Center Overview

2 Maintenance Initiatives SHIPMAIN – the maintenance process Waterfront Integration – the organization NEMAIS – the “tool” (SAP)

3 Why SHIPMAIN? Address current maintenance and modernization challenges –Lack a common process and single process owner –Excessive handoffs across multiple organizations –Unclear accountability for results –Funding administration & uncertainty cause ‘churn’ –High “Premiums” paid in execution cost due to inefficient upkeep planning –Excessive spending on ALTS designed and procured, but not installed

4 SHIPMAIN Goals Install a common planning process for surface ship maintenance and modernization Increase the efficiency of the process without compromising its effectiveness Install a disciplined management process with objective measurements Institutionalize the process and a continuous improvement method (JFMM & feedback)

5 SHIPMAIN Philosophy Minimize Growth and New Work (G&NW) through better planning and earlier MSR involvement. Implement a Maintenance Figure of Merit (MFOM) approach to prioritize maintenance. Change the “culture” to effectively reduce premiums paid by managing G&NW.

6 SHIPMAIN CFT-1 Requirements CFT-2 Package Preparation CFT-3 Placement and Oversight CFT-4 Alterations and Modernization

7 CFT-1 Requirements Maintenance Teams – focal point Planning Board for Maintenance One-step work brokering and screening Prioritized 2Ks: Maintenance Figure of Merit Continuous flow of 2Ks to MSR Auto screening of ICMP 2Ks ICAVs provide electronic 2Ks Metrics, metrics, metrics…more metrics

8 What is a Maintenance Team? Commanding Officer Project Manager Port Engineer Ship Supervisor Contractor Representative (Not yet completely in place)

9 Ship Maintenance Teams Primary responsibilities – Focused on a Specific Ship –Identify and prioritize required work IAW consistent MFOM – validity and accuracy –Determine when and where work items will be accomplished - based on business practices that reduce cost –Match resources to prioritized requirements –Oversee availability execution Small cross-functional team executes planning and oversees execution

10 CFT-2 Package Preparation Master spec catalog –Establish reusable specifications –Provides template for new specs Package prepared by executing activity Robust feedback for new specs and cost returns

11 CFT-3 Placement and Oversight Coordination of MT and Contractor Continuous Technical Advisory Reports Gov’t estimates not required Multi-Ship/Multi-Option (MSMO) contracts Flow of maintenance items between CNO and continuous maintenance availabilities RMCs control funding

12 CFT-4 Alterations and Modernization All ALTS through same process Two Types: Program (K) & Fleet (D) Mission and BG Interoperability focus Hierarchical decision making model Prioritized list: ALT Figure of Merit Engineering/BCA filters applied before extensive development of an ALT

13 Waterfront Integration Fleet initiative Combines RSG, SIMA, FTSCLANT and SUPSHIP Portsmouth All RMC’s (non-shipyard) similar –Mid Atlantic (Norfolk) –South East (Mayport) –South Central (Ingleside) –South West (San Diego) Personnel reductions achieved through attrition

14 Waterfront Integration Goals include: –Eliminate redundancy –Standardize processes both regionally and nationally –Implement the SHIPMAIN entitled process –Reduce reimbursable work >> mission funded Somewhat more difficult in Norfolk due to complexity, geography, market and density

1,016 personnel = 267 military gov’t civilian contractors 79 personnel = 52 military + 20 gov’t civilian + 7 contractors 627 personnel = 16 military gov’t civilian contractors 1,851 personnel = 1,782 military + 68 gov’t civilian + 1 contractor 3,573 personnel = 2,117 military + 1,071 gov’t civilian contractors

16 MARMC Organization FINANCIAL LOGISTICS INFORMATION TECHNOLOGY PRODUCTION WATERFRONT OPERATIONS CONTRACTSENGINEERING COMMANDER DEPUTY EXECUTIVE DIRECTOR BUSINESS OFFICE COMMAND SUPPORT SVCS

17 NEMAIS NAVSEA’s solution for ship maintenance Somewhat cumbersome at present U-NNPI Certification in progress Evaluating additional NEMAIS seats for MA-RMC functions Need support while awaiting convergence

18 ISSUES No layoffs Optimal Manning on surface ships – PMS Reimbursable work for FTSCLANT Shift from FFP to MSMO contracts Four unions to negotiate with Surface ship maintenance in the MED/GULF

19 AND MORE ISSUES Connectivity and AIS 500+ instructions to merge JFMM update Funding churn… Lots of moving parts…

20 QUESTIONS?