1. Integrity - Service - Innovation DMAIC-380111—DLA MILSBILLS Adjustment/Credit Process Joshua K. Doroen, GS-11 Black Belt, DFAS-LI Lean6 Sigma Office 17 November 2010

2. Integrity - Service - Innovation DMAIC 380111—DLA MILSBILLS Credit/Adjustment Process Team/Stakeholders BB: Reginald Bossie, Joshua Doroen Champion: Mr. Wayne Ingle Sponsor: Benjamin Shaw Stakeholders: US Air Force, DFAS-LI Accounts Payable, DFAS-CO Account Receivable, DLA Charter Core Area: Operations Directorate Sub Core Area: Accounts Payable Directorate Problem Statement: The Services are required to pay all billings submitted to them by Defense Logistics Agency (DLA). If a transaction is disputed by the Service, DFAS is allowed to hold that billed transaction in a partial status, withholding payment for 120 days after which their Operations & Maintenance (O & M) Appropriation is charged. The Major Commands of the Air Force currently have $5.85M in disputed transactions in this disputed status, and $5.23M of DLA EBS Sites (Routing ID SMS) and DLA Fuels (Routing ID S9F) transactions in dispute with DLA. Of that amount, $3.27M has been held in dispute since FY2009. The average age of items currently in dispute is 87 days. FY 2010 credits, if forced to be paid then not validated and returned, will be similarly unavailable for further obligation by the Air Force. Goal/Objective: Reduction of transactions disputed by 50% Reduction of disputed transaction age to <60 days.

3. Integrity - Service - Innovation DMAIC 380111—DLA MILSBILLS Credit/Adjustment Process Deliverables / Results Completed Rapid Improvement Event hosted at DFAS-CO in July for five days involving DFAS-LI, DFAS- CO, AF and DLA personnel  Work on three DMAIC phases completed and improvements brainstormed/prioritized Solutions being chartered into separate projects at this time Issues FAE/FAF Adjustment Request Process is not fully developed in EBS. No SCR has been initiated at this time  A mid-term solution is currently in development, but without the SCR we will not be in compliance with DoD 4000.25-7-M Cost Savings $2.4M already realized by the Air Force  Disputed transaction resolved and returned to be available for obligation on a hundred dollar item that was billed at the wrong amount. $7M in potential savings due to reduction in interest on customer direct items in situations that the AF does not provide timely receipts to DLA

4. Integrity - Service - Innovation DLA MILBILLS Credit Pareto of USAF Data in Dispute

5. Integrity - Service - Innovation Voice of the Customer captured Customer Requirements Matrix

6. Integrity - Service - Innovation Implementation Ideas Prioritized

7. Integrity - Service - Innovation Project Breakouts