DLA Distribution FY 2017 Annual Operating Plan 2017 Annual Operating Plan 2 DEFENSE LOGISTICS AGENCY (DLA) DISTRIBUTION FISCAL YEAR (FY) 17 ANNUAL OPERATING PLAN (AOP) Mission, Vision

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Defense Logistics Agency

DLA Distribution

FY 2017 Annual Operating Plan

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DEFENSE LOGISTICS AGENCY (DLA) DISTRIBUTION FISCAL YEAR (FY) 17 ANNUAL OPERATING PLAN (AOP)

Mission, Vision and Values: DLA’s Mission: Provide effective and efficient global solutions to Warfighters and our other valued customers

DLA Distribution Mission: Global distribution service provider for the Department of Defense (DoD) and valued customers As a DLA primary level field activity (PLFA), DLA Distribution is the leading provider of global distribution support to America’s military including receiving, storing and issuing supplies as well as providing other tailored services to increase Warfighter readiness. DLA Distribution offers best value supply chain solutions through a broad range of services including storage, distribution, customized kitting, specialized packaging as well as transportation support and technology development. We are connected directly with our operational and industrial partners and integral to the success of our National Military Strategy. Highly skilled employees provide timely distribution services to customers around the globe. In FY 16, DLA Distribution processed over 14.8 million receipts and issues supporting customer operations worldwide, including support to combat operations, humanitarian assistance missions, whole of government (WOG) partners and a multitude of military exercises.

DLA’s Vision: Deliver the right solution on time, every time DLA’s Values: Our values provide the foundation for all of the actions we take and the decisions we make in support of our customers, stakeholders, workforce, and partners.

• Integrity: Honest and trustworthy, we follow through on what we promise. • Resiliency and Diversity: Flexible, responsive, recoverable, and able to quickly adapt to

changing business environments while achieving outstanding results. Composed of people from varied backgrounds. We celebrate and leverage our differences to deliver innovative and effective outcomes.

• Innovation: We pioneer new ideas, devices, and methods. Working with each other, customers, and stakeholders to provide solutions that are unique and creative.

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• Accountability: Obligated and willing to accept responsibility. We are accountable to DOD and our customers, just as our workforce is accountable to the DLA mission to provide effective and efficient global solutions to Warfighters and our other valued customers.

• Excellence: Extremely high quality. We take pride in providing first-class solutions on time, every time.

DLA Director’s Strategic Plan 2015-2022: DOD is scaling down operations overseas and drastically reducing costs. As a result, DLA’s sales and workload have decreased from its peak several years ago years and DLA Distribution is faced with the challenges of this new environment. DLA Distribution will continue to focus on providing effective and efficient distribution services which will provide best value support to the Warfighter by supporting the Director’s five Goal Areas:

• Warfighter First – Make promises and keep them • People and Culture – Valued team members; resilient and ready for the challenge • Strategic Engagement – Better outcomes through teamwork • Financial Stewardship – Affordable solutions and continued accountability • Process Excellence – Always improving; finding smarter ways to do things

The DLA Director’s Strategic Plan 2015-2022, Director’s Intent and Annual Guidance, and Strategic Plan Implementation Guidance detail the steps that the Agency needs to take to operate in a fiscally challenging environment. DLA Distribution’s Annual Operating Plan directly supports the Director’s guidance. Environmental Assessment: DLA Distribution’s environment presents significant challenges. Consistent with the Director’s Strategic Plan we will seek new opportunities to strengthen and optimize our operations, expand the scope of our current service offerings and customer base, and continually improve our enduring relationships within our resource constraints while achieving and maintaining Audit Readiness (AR) and compliance. Culture and the Integrated Planning Process: As part of DLA Distribution’s Culture Action Plan, we instituted an Integrated Planning Process which provides a systemic repeatable process across all planning cycles; both short-term and long-term. The culture action plan is incorporated into the development, content, and execution of the Annual Operating Plan and fully integrates it into the Senior Leadership’s decision making & performance management process. To build an organization that is the most effective, efficient and delivers best value distribution solutions, the culture action plan is made up of three integrated elements of Structure, Process, and People (the specific elements are embedded below in the AOP goals and objectives). The ultimate goal of our efforts is to continuously improve our culture in order to "deliver more value, at less cost" to our customers and stakeholders. DLA Distribution will support DLA’s continuing culture effort including the culture survey and subsequent culture action planning.

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Approach: DLA Distribution’s approach will meet agreed upon customer requirements within FY 17 resource constraints. The DLA Director’s Strategic Plan, AR / Sustainment, Process Excellence, and Continuous Process Improvement (CPI) will serve as the foundation of how we will strengthen ourselves to build our enabling storage and distribution (S&D) foundation of people, processes and technology to create an effective, efficient distribution organization that provides best value to the Warfighter. DLA Distribution will execute the approach through five goal areas that combine to reach our four end states. End States: Meet Customer Requirements:

• End-state: Executing the mission to achieve negotiated customer requirements • Rationale: To remain relevant as the DOD’s S&D provider of choice, DLA Distribution

must meet our customer’s requirements in order to allow them to perform their worldwide missions

• Measures of success: Achieve 80% amber and green status network-wide on monthly assigned Acceptable Performance Levels (APL) within budgeted resources

Achieve/sustain Audit Opinion: • End-state: Organizational processes documented; employees trained and working to

standard; leadership managing a quality control and assurance process; leadership managing evidential matter in a disciplined and timely way

• Rationale: A fundamental competitive advantage and a requirement of DOD is to “sustain accountability, control, and visibility of materiel”. This is achieved by disciplined mgmt. of processes, enabling technologies, quality control & assurance, and development of people

• Measures of success: Audit Opinion in FY 17, sustain Statement on Standards for Attestation Engagements 2016 (SSAE 16) Inventory Opinion

Optimize Total Supply Chain Costs: • End-state: All decisions are evaluated by considering total supply chain costs and

potential savings (e.g. transportation, material processing, maintenance, supplies, personnel, inventory, acquisition, etc…)

• Rationale: DLA Distribution has the expertise to effectively optimize the supply chain for our customers

• Measures of success: Optimize supply chain cost by $39.5M (internal cost + external cost) while demonstrating that best value decisions are reached

Resilient Organization: • End-state: Flexible, responsive, recoverable, and able to quickly adapt to changing

business environments while achieving outstanding results • Rationale: Creating and maintaining a resilient organization will match the workforce’s

output with its capability • Measures of success: Increase deployable readiness, create a problem solving culture,

reduce absenteeism, increase individual productivity

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1. Goal Area: Warfighter First: – Deliver innovative and responsive solutions to Warfighters first, DOD components, and our other valued customers

a. Objective – Performance Based Logistics (PBL) S&D Integration-Partner with DLA Headquarters (HQ) and the Military Departments (MILDEPs) on developing S&D partnership in support of various Major Weapons Systems Programs, to include: Joint Strike Fighter (JSF), Littoral Combat Ship (LCS), & Light Armored Vehicle (LAV) (Office of Primary Responsibility (OPR): Business Development (BD)) Director's Specified Guidance: Continue to identify storage and distribution opportunities with Program Executive Office (PEO)/ Performance Based Logistics (PBL) programs. Integrate at least two Military Service weapons system PEO/PBL programs with DLA Distribution capability. Completion target: Start transition of Army Stryker materiel into DLA Distribution Anniston no later than April 1, 2017 i. Areas to be examined are:

1. Public-Private partnership with industry 2. Organic distribution support versus commercial 3. Level of support: Full S&D versus limited (transportation, Preservation,

Packaging, Packing and Marking (PPPM), etc.) 4. Continental United States (CONUS), Outside the Continental United States

(OCONUS), or both. ii. Desired outcome:

1. Reduction of total supply chain cost through the leveraging of existing DLA Distribution infrastructure and capabilities

2. CONUS S&D capability at industrial bases providing direct production line support

3. OCONUS S&D capability supporting all fielded units, for US and foreign partners

iii. Metrics, measures and targets: 1. These are ongoing initiatives without-year results 2. Informal measurement is continued dialogue with Industry partners, a “seat at

the table” for discussion and decision briefs, and continued interest by senior service leaders and Industry in S&D capabilities available to the program

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iv. Plan of Actions and Milestones (POAM):

Description Completion Date JSF: In support of DLA Logistics Operations (DLA J3), engage Lockheed Martin Aero Supply Chain managers to identify and map processes, compare resources, begin requirements planning for sustainment role at industrial sites and worldwide support of all variants

Ongoing

JSF: In support of DLA J3 engage Pratt & Whitney in business discussions to support engine refurbishment and rebuild at Oklahoma City- Air Logistics Complex (ALC) through providing parts management, kitting operations, and transportation services at DLA Distribution Oklahoma City

Ongoing

LAV: Execute S&D support to Program Manager (PM) LAV at Albany and Barstow

September 2017

LCS: Execute S&D Support to PM LCS at San Diego September 2017 PM Stryker: Execute S&D Support to PM Stryker at Anniston Army Depot September 2017

b. Objective - Foreign Military Sales (FMS) Distribution Services - DLA Distribution is

partnering with US Transportation Command (USTRANSCOM), Defense Security Cooperation Agency (DSCA), and the MILDEPs to provide FMS storage, consolidation, distribution, and transportation services to FMS customers (OPR: BD) Director's Specified Guidance: Continue to develop the FMS Distribution Services Initiative (DSI) in conjunction with DSCA, USTRANSCOM, and Military Services. Expand FMS Distribution Services to the Top 10 Class (CL) IX weapons system cases. Increase customer baseline 25% by adding two countries in FYI 7. Completion target: in collaboration with (ICW) USTRANSCOM, conduct three engagement sessions per quarter targeted at the Top 10 CL IX cases i. Desired outcome – DLA Distribution & USTRANSCOM aim to be the provider of

choice for all FMS S&D requirements. DLA Distribution provides and enabling capability to support increasing more volume into the Defense Transportation System (DTS)

ii. Metrics, measures and targets: 1. Increase FMS DSI customer baseline by a least 25% over FY16 baseline (from

6 to 8) 2. 25% increase in FMS DSI workload over FY16 baseline (measured by Revenue

generated). 3. Export FMS DSI capability within DLA Distribution network to a least two

additional Distribution Centers (Central and Western U.S.) 4. Minimum of three FMS DSI “Top 10” Engagement events per quarter

w/USTRANSCOM

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iii. POAM:

Description Completion Date Conduct one CPI event aimed at improving original FMS DSI business model Ongoing

Grow FMS DSI business by 25% September 2017 Schedule Customer engagements visits (w/USTRANSCOM) at least monthly Quarterly

c. Objective - Customer Initiated S&D Opportunities - Leverage DLA Distribution

capabilities and capacity in support requests initiated by DoD/WOG customers. (OPR: BD) Current initiatives include:

1. Naval Sea Systems Command (NAVSEA) Long Lead Time Procurement (LLTM)/ Future use material (FUM) Mission

2. US Special Operations Command (USSOCOM) Inventory Control Point (ICP) 3. Recruit Training Centers (RTC) 4. Naval Air Systems Command (NAVAIR) FMS Storage

Director's Specified Guidance: Achieve audit readiness for DLA owned inventory at the RTCs by implementing DLA S&D oversight and DSS. Implement four Army RTCs during FY17

• Fort Leonard Wood - December 31, 2016 • Fort Sill - March 31, 2017 • Fort Benning - June 30, 2017 • Fort Jackson - September 30, 2017

Expand Combatant Command CCMD storage and distribution requirement in four locations: USSOCOM, Oman, Djibouti, and Iwakuni. Enhance capability at DLA Distribution Bahrain to support the Trans Arabian Network (TAN) as it expands through FYI7 in accordance with USCENTCOM's conditions based approach. Completion targets:

• USSOCOM: Initial Operational Capability (IOC) - October 1, 2016 • Oman: IOC - November 30, 2016, Full Operational Capability (FOC) -

December 31, 2016 • Djibouti: IOC - October 1, 2016, FOC - January 1, 2017 • Iwakuni: IOC - April 30, 2017, FOC - July 31, 2017

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ii. Desired outcome: 1. Reduction of overall cost to DOD and WOG though reduction of redundant

S&D infrastructure 2. Responsive and Accountable S&D support to NAVSEA commercial shipyard

maintenance availability program 3. Provide S&D oversight, contract language, and Distribution Standard System

(DSS) to establish inventory accountability and achieve Financial Improvement and Audit Readiness (FIAR) for Special Operations Forces (SOF) ICP and eight RTCs

iii. Metrics, measures and targets: 1. USSOCOM: IOC for DLA Distribution management team and DSS installation

1 Oct 2016 2. LLTM: Norfolk region FUM support FOC no later than 31 December 2016 3. Implement DSS and S&D oversight at four addition RTC by end of FY17

iv. POAM:

Description Completion Date IOC for DSS and S&D oversight at USSOCOM ICP in Lexington, KY October 2016 FOC for LLTM Mission at DLA Distribution Norfolk December 2016 FOC for FMS Material stored at Gulfport, MS March 2017 IOC for DSS and S&D Oversight at an additional four RTCs September 2017

d. Objective – Distribution Center Performance (OPR: J3, Office of Coordinating

Responsibilities (OCR): DLA Human Resources (J1)/J4/J5/J7/J8/BD/OM):

Director's Specified Guidance: Meet or exceed negotiated customer metrics. Achieve green performance in at least 85% of assigned Wholesale and Retail key performance indicators. No later than January 1, 2017, in coordination with DLA Aviation and DLA Land & Maritime, standardize Fleet Readiness Center (FRC) and key shipyard performance indicators:

• Performance - Monthly • DLA Aviation - October 31, 2016 • DLA Land and Maritime - December 1, 2016

i. Meet Performance Standards in 3 business segments: wholesale, retail, and disposals

1. 24 wholesale distribution centers organized into 5 strategic categories 2. 12 retail distribution centers organized into 4 functional categories 3. 10 co-located disposal sites

ii. Desired outcome: 1. Wholesale: Achieve overall >85% green/amber performance on Agency

Performance Review (APR) metrics within each of 5 customer groups (Strategic Distribution Platform (SDP) Global, Army, Navy, Air Force, OCONUS)

2. Retail: Achieve overall >85% green/amber performance for retail APLs 3. Disposal: Achieve overall >80% green/amber performance for disposal APLs

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iii. Metrics, measures, and targets: 1. Wholesale:

a. Focus high priority (HI PRI)/Routine Issues and New Procurement (NP) receipts

b. Accepting risk: Disposal Orders, Stock Transfer Orders (STO), and Customer Returns

2. Retail: Focus Pick Ship/Issue, Receipts to Stow, Inventory Accuracy, Location Survey Accuracy

3. Disposal: Backlog and Capacity Effectiveness iv. POAM:

Description Completion Date

Implement Item Unique Identification (IUID) August 2016 Implement serialization Begin Sep 2016 Standardize Shipyard metrics with Land and Maritime September 2016 Standardize metrics with Aviation September 2016 Transition the TAN from planning to execution Ongoing Transition Oman from planning to execution October 2016 Implement serialized inventory – (DLA Distribution Tobyhanna) December 2016 Transition Djibouti from plans to execution January 2017 Transition Iwakuni from planning to execution April 2017 Navy Warehouse Transfer DLA network install at Port Hueneme and Gulfport Pending

Disposal: Pass scheduled Operational Effective Review (OER) Pending

e. Objective - Manage Acquisition Performance – To manage the DLA Distribution J7

Acquisition Operations mission performance in support of customer requirements while attaining/sustaining appropriate metrics (OPR: J7) Director's Specified Guidance: Achieve successful acquisition mission performance in support of customer requirements while attaining/sustaining appropriate metrics i. Desired outcome:

1. No supply outages at the DCs 2. No break in service requirements 3. Services provided in accordance with the requirements

ii. Metrics, measures, and targets: 1. Acquisition metrics will be monitored as necessary/required and reported

monthly to meet DLA prescribed goals 2. Provide J7 Acquisition Operations monthly update

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iii. POAM:

Description Completion Date Track metrics against standard for FY October 2016 Report Monthly End of Month

f. Objective – Personnel Readiness – (OPR: J9, OCR: Distribution Centers)

1. Maintain 90% deployment readiness for assigned active and reserve military as well as expeditionary civilian personnel

2. Support Agency mobilization requirements 3. Incorporate theater training standards into Individual Training Plan(ITP)

Director's Specified Guidance: Maintain 90% deployment readiness for assigned active military, organic reserve forces and expeditionary civilian personnel in order to support Agency mobilization requirements in accordance with time requirements. Exercise Expeditionary Distribution Center(DDE)expeditionary capability as a team for at least one exercise in FY 17

ii. Desired outcome:

1. Maintain monthly readiness at or above 90% 2. Early detection of potential issues and challenges 3. Trained and Ready Personnel available to deploy on time 4. Mission ready expeditionary elements to support DOD, Agency or WOG

missions iii. Metrics, measures, and targets:

1. Personnel Readiness % monthly a. Service / DLA Civilian Expeditionary Workforce Standards –

i. Medical ii. Security

iii. Personnel Requirements 2. Percent of fill by component 3. Meet –Theater requirement

iv. POAM:

Description Completion Date Develop standard readiness reporting template for all resources September 2016 Identify/gain/confirm access to joint personnel systems September 2016 Review medical/training requirements for all CCMD support October 2016

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g. Objective – Expeditionary Distribution Center Exercise (DDE) – Exercise DDE expeditionary capability as a team during at least one exercise in FY 17 (OPR: J9, OCR: J3/J5) Director's Specified Guidance: Maintain 90% deployment readiness for assigned active military, organic reserve forces and expeditionary civilian personnel in order to support Agency mobilization requirements in accordance with time requirements. Exercise DDED expeditionary capability as a team for at least one exercise in FY17 i. Desired outcome:

1. Exercise defined 2. Concept of Operations (CONOPs) Developed 3. Exercise Train-up 4. Execute Mission Essential Task List (METL) effectively

ii. Metrics, measures, and targets: 1. DDE Personnel Readiness – 90% 2. DDE Personnel fill rate – 90% 3. DDE Trained in Mission Essential Task List 4. Effective Execution demonstrate via mission accomplishment

iii. POAM:

Description Completion Date Develop CONOP for DDE Exercise February 2017 Complete DDE Exercise August 2017 Exercise After Action Review (AAR) September 2017

2. Goal Area: People and Culture –Align and integrate structure, people, processes, technologies and infrastructure to facilitate effective mission accomplishment and strategy achievement.

a. Objective - People Development- (OPR: Deputy Director (DD), OCR: Distribution Directors and Commanders)

1. DLA Instruction: “The active selection, development, coaching, mentoring, and performance management of people to achieve the established roles, responsibilities, authorities, and accountabilities [defined in the structural alignment] …Every leadership level must ensure there is always a match between the requirements of the role and the capabilities of the people assigned to the role”.

2. Required component of overall DLA Enterprise Process Management Instruction (DLAI 5010.01)

a. Structural Alignment b. Process Management c. People Development d. Resource Management

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Director's Specified Guidance: Assess/improve programs and resources that contribute to workforce resiliency. no later than December 31, 2016, develop and publish a plan that integrates resiliency concepts into leadership and workforce development efforts (i.e., on-boarding, Voluntary Protection Program (VPP), leadership forums, training) Continue development and expansion of the Distribution Leadership System to build a high performing culture that delivers more value at less cost. Leverage the 2016 Denison Culture Survey results to inform the organization of business process opportunities. Develop the DLA Distribution Culture Action Plan no later than October 31, 2016, for implementation in FY17

ii. Desired outcome: 1. Improved alignment of recruitment, selection and induction process to deliver

people with the capability required of the role. 2. Improved training and development for managers to effectively execute the

“managerial responsibilities” 3. Aligned to the new DOD Performance Management and Appraisal System 4. Aligned local efforts to the enterprise strategy for succession management &

career management 5. Improved understanding and execution of coaching (manager to subordinate)

and mentoring (“manager once removed” to “subordinates once removed”) iii. Metrics, measures, and targets:

1. Leadership Effectiveness - Complaints/Grievance down 10% 2. Managerial Responsibilities evident through Deputy led Check/Act assessment

process 3. Culture Survey Feedback incorporated into “Integrated Planning Process” (ex.

Tactical Plans) 4. Distribution center (DC) employee utilization improved 5%

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iv. POAM:

Description Target Date In coordination with J1 training – continue to deliver first phase of High Performance Leadership (HPL) – modules: Job Instruction, Job Relations and Quality Control

End of FY 17

In coordination with J1 training –development phase II of High Performance Leadership for the Deputy & DLA Distribution HQ Government Schedule (GS)15/O6 (part of “DLA Bolster Leadership Competencies” effort)

January 2017

Begin delivery of HPL II starting with the Deputy & GS-15/O6 which yields a disciplined layered check- act process, validating the incorporation of Managerial Responsibilities into day to day operations; to improve coaching and mentoring skills of senior managers; and to improve knowledge sharing across the network

March 2017

In coordination with DLA J1 training –development of phase II of High Performance Leadership (this is for all the managers, and follows from the Deputy & Senior Leaders training)

May 2017

Managerial Responsibilities incorporated into all leader performance plans with accountability (leverage the new DOD Performance System) Aligned with DLA

Workforce Resiliency – Develop/retain a high performing, valued, healthy, and accountable workforce Ongoing

Continue to align local efforts into enterprise strategy for succession management and career planning (functional community management, career maps, etc.)

Aligned with DLA

Strengthen leadership competency in the areas of diversity and inclusion Ongoing Start delivery of HPL II for all managers June 2017

b. Objective - Engineered Standards- (OPR: J4, OCR: J3/DLA Information Operations

(J6)/J7) 1. Reflects work content (labor effort) of storage and distribution functions in DSS

as well as functions observed in currently defined process maps 2. Engineered standards provide input to annual labor staffing models and

performance metrics 3. Improves support to our customers while driving down operational and materiel

cost

Director's Specified Guidance: Improve performance documentation, accountability, system change and access process, standardization, and customer service through end-to-end (E2E) Process Management

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ii. Desired outcome: 1. Provide distribution a means to measure efficiencies and align staff to work 2. Implement engineered standards at DLA Distribution wholesale locations 3. Obtain a management workload tool that allows for validation and measurement

of engineered standards, performance, and utilization iii. Metrics, measures, and targets:

1. Engineered standards will validate the four Key Performance Metrics (KPM) 2. Top 80% of engineered standards at Tobyhanna have been validated in

functional areas where the workload is being performed 3. Incorporate comparative analysis of new technology to provide process

efficiencies and return on investment for engineered standards iv. POAM: Combined with Standard Organization Structure/Position Descriptions (PD)

c. Objective – Standard Organization Structure/Position Descriptions – Develop

standardized DC organizational structures, PDs, and performance plans (PPs) for DLA Distribution Tobyhanna, Norfolk, Warner Robins, Susquehanna, San Joaquin, Oklahoma and Red River (OPR: J4 OCR: J3/J7/Organization Management (OM)) Director's Specified Guidance: Implement FY17 Programmed Cost Reductions, DOD-directed Full Time Equivalent (FTE) reductions, institutional reforms, and organizational restructuring directives. i. Desired outcome:

1. Organizational structure for the DCs that align to the standard structure framework developed in FY16

2. Standard PDs that accurately reflect the duties personnel are expected to perform in accordance with correct execution of standard processes

3. Standard PPs tailored to distribution functions reflecting safety, quality, and productivity levels

ii. Metrics, measures, and targets: 1. Standard organizational structures delivered to the DCs for implementation 2. J1 deliver classified standard PDs to the DCs for implementation 3. Standard PPs delivered to the DCs for implementation 4. Draft Impact and Implementation (I&I) document delivered to J1 for Union

review

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iii. POAM:

Description Completion Date Acquisition of Standards Pro and PlanStaff Manager June 2016 DLA Distribution Tobyhanna Standardization Program - Standards maintenance / standard org structure/ PDs / PPs / I&I August 2016

DLA Distribution Norfolk Standardization Program - Standards maintenance / standard org structure/ PDs / PPs / I&I September 2016

DLA Distribution Warner Robins Standardization Program - Standards maintenance / standard org structure/ PDs / PPs / I&I November 2016

DLA Distribution Susquehanna Standardization Program - Standards maintenance / standard org structure/ PDs / PPs / I&I January 2017

DLA Distribution San Joaquin Standardization Program - Standards maintenance / standard org structure/ PDs / PPs / I&I April 2017

DLA Distribution Oklahoma City Standardization Program - Standards maintenance / standard org structure/ PDs / PPs / I&I July 2017

DLA Distribution Red River Program - Standards maintenance / standard org structure/ PDs / PPs / I&I September 2017

d. Objective – Structural Alignment - (OPR: DD, OCR: Distribution Directors) 1. DLA Instruction: “An intentionally designed organizational structure that

fosters and reinforces a culture of problem solvers; promotes vertical and cross-functional integration, communication and accountability; and establishes authority and responsibilities for leaders at all levels to coach & mentor direct reports”



Director's Specified Guidance: Implement FY17 Programmed Cost Reductions, DOD-directed FTE reductions, institutional reforms, and organizational restructuring directives.

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ii. Desired outcome: 1. Continue to update & communicate the managerial roles, responsibilities,

accountabilities & authorities for all levels 2. Continue to strive for five levels of leadership from the DLA Distribution

Commander to 1st Line 3. Continue to improve functional groupings to reduce the span of control and

enable execution of “Managerial Leadership Responsibilities” 4. Continue to improve functional groupings to “minimize” complex handoffs

across functions and enable improved cross-functional flow of work 5. Continue to update & communicate cross-functional roles, responsibilities,

accountabilities & authorities between functions iii. Metrics, measures, and targets:

1. Five levels of leadership 2. Span of control no greater than 1:12 3. Updated and communicated managerial roles, responsibilities, accountabilities

& authorities 4. Updated and communicated cross-functional roles, responsibilities,

accountabilities & authorities iv. POAM:

Description Target Date

Continue to refine and adapt organization structure in accordance with best business practice and required strategy to task organize & refine the required package as needed

Ongoing

Continue to keep the Union notified; establish communications plan; establish implementation plans and POAM with missions and functions Ongoing

Continue to monitor and assess changes in organizational structure (plan vs. actual) and to initiate recruitment and selection as needed Ongoing

3. Goal Area: Strategic Engagement - Team with the Combatant Commands (CCMD), industry, and other partners in the delivery of effective and affordable S&D solutions

a. US Pacific Command (USPACOM): (OPR: J5) 1. Participate in USPACOM Exercise Program to better integrate DLA

Distribution capabilities into CCMD operations 2. Operations Plan (OPLAN) updates for 50 Series Plans 3. Establish new distribution facility in Iwakuni Japan to support US Marine Corps

(USMC) and Navy realignment based on the Defense Policy Review Initiative (DPRI)

4. Conduct a Business Case Analysis (BCA) in order to review establishment of a Theater Consolidation and Shipping Point (TCSP) at Okinawa

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Director's Specified Guidance: Execute Global Distribution Strategy and rebalance capabilities to meet CCMD requirements. Enable increased CCMD agility through forward stocking and other supporting initiatives

Expand CCMD storage and distribution requirement in four locations: USSOCOM, Oman, Djibouti, and Iwakuni. Enhance capability at DLA Distribution Bahrain to support the TAN as it expands through FYI 7 in accordance with United States Central Command’s (USCENTCOM's) conditions based approach. Completion targets:

• USSOCOM: IOC - October 1, 2016 • Oman: IOC - November 30, 2016, FOC - December 31, 2016 • Djibouti: IOC - October 1, 2016, FOC - January 1, 2017 • Iwakuni: IOC - April 30, 2017, FOC - July 31, 2017


1. Deliberate Planning: Meet all DLA HQ requirements for contingency, operational, and/or theater plans in USPACOM area of Responsibility (AOR)

2. Crisis Action (Emerging Requirements) Planning: Meet all DLA HQ requirements for developing strategic location plans in USPACOM AOR

3. Exercise Participation: Embed DLA Distribution capabilities in USPACOM and select subordinate command exercises

4. Distribution Integration: Develop and update support guidance for all Distribution Centers within USPACOM

iii. Metrics, measures and targets: 1. Meet DLA planning order (PLANORD) targets 2. Publish Logistics Supportability Analysis on newly published plans as directed

by DLA HQ 3. Publish Distribution Support Plans as directed by DLA HQ 4. Participate in CCMD exercises as directed by DLA HQ 5. Meet POAM targets

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iv. POAM:

Description Completion Date Continue 502X and 507X planning in accordance with the planning cycle Ongoing Complete BCA for Okinawa TCSP (Further actions in Okinawa pending a positive BCA) November 2016

Building Upgrades in Iwakuni November 2016 DSS Training and “Go Live” at Iwakuni March 2017 Inventory Transfer to Iwakuni April 2017 Iwakuni Distribution Detachment IOC April 2017 Exercise Train-up June 2017 Participate in Ulchi Freedom Guardian 17 and Pacific Sentinel 17 August 2017

b. Objective - US Europe Command (USEUCOM): (OPR: J5)

1. DLA Distribution integrate capabilities, initiatives, plans, and innovation to successfully posture the organization to support Phase 0 and potential contingency operations in the USEUCOM AOR

2. DLA Distribution provide an expeditionary element to DLA Distribution, Europe (DDDE)

3. DLA Distribution provide Materiel Processing Center (MPC) training to DDDE 4. DLA Distribution develop interior lines strategy between DDDE, DLA

Distribution, Sigonella (DDSI) and DDSI Detachment Rota Director's Specified Guidance: Execute Global Distribution Strategy and rebalance capabilities to meet CCMD requirements. Enable increased CCMD agility through forward stocking and other supporting initiatives

ii. Desired outcome: 1. Participate in USEUCOM and select subordinate command exercises as

appropriate 2. Exercise the Joint Planning Group (JPG) in a USEUCOM exercise as

appropriate 3. Meet all DLA requirements for all USEUCOM contingency, operational, or

theater plans 4. Develop plan to mitigate any risk or gaps identified by Research and

Development (RAND) corporation in their analysis of DLA Distribution’s ability to support a major contingency in the USEUCOM AOR

5. Establish expeditionary capability at DDDE 6. Complete MPC training at DDDE 7. Complete interior lines strategy

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iii. Metrics, measures and targets: 1. All targets in DLA HQ FY17 planning order met 2. All targets in DLA HQ FY17 exercise directive met 3. Plan developed and approved to mitigate any risks addressed in RAND study 4. JPG activated and exercised in coordination with USEUCOM as appropriate

iv. POAM:

Description Completion Date DDDE expeditionary capability and MPC capability study Decision Briefs March 2017 Planning Conferences for placement of Forward Warehouse in EUCOM Exercise June 2017

Complete Terrain Walk of significant EUCOM distribution nodes June 2017 Interior Lines Strategy Concept Decision Brief June 2017 Annual Plans review September 2017

c. Objective - US Africa Command (USAFRICOM): (OPR: J5)

1. DLA Distribution integrate capabilities, initiatives, plans, and innovation to successfully posture the organization to support Phase 0 and potential contingency operations in the USAFRICOM AOR

2. Establish a TCSP, MPC, and assume responsibility of Supply Support Activity (SSA) in and around Camp Lemonier, Djibouti, Africa

3. Establish West Africa Logistics Network (WALN) in order to support Low Volume / Low Frequency (LV/LF) demands

4. Collaborate with USTRANSCOM to complete channel study in support of USAFRICOM

Director's Specified Guidance: Execute Global Distribution Strategy and rebalance capabilities to meet CCMD requirements. Enable increased CCMD agility through forward stocking and other supporting initiatives

Expand CCMD storage and distribution requirement in four locations: USSOCOM, Oman, Djibouti, and Iwakuni. Enhance capability at DLA Distribution Bahrain to support the TAN as it expands through FYI7 in accordance with USCENTCOM's conditions based approach. Completion targets:


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ii. Desired outcome: 1. Participate in USAFRICOM and select subordinate command exercises as

appropriate 2. Exercise the JPG in a USAFRICOM exercise as appropriate 3. Meet all DLA HQ requirements for all USAFRICOM AOR contingency,

operational, or theater plans 4. Develop plan to mitigate any risk or gaps identified by RAND corporation in

their analysis of DLA Distribution’s ability to support a major contingency in the USAFRICOM AOR

5. Establish a fully operational TCSP at Camp Lemonier, Djibouti 6. Establish WALN

iii. Metrics, measures and targets: 1. All targets in DLA HQ FY17 planning order met 2. All targets in DLA HQ FY17 exercise directive met 3. Plan developed and approved to mitigate any risks addressed in RAND study 4. JPG activated and exercised in coordination with USAFRICOM as appropriate 5. Reduce customer wait time (CWT) in Djibouti, Africa 6. Reduce CWT for LV/LF shipments into West Africa

iv. POAM:

Description Completion Date Distribution site established with IOC at Djibouti, Africa and transferred to DLA Distribution Current Operations October 2016

Receive Annual Plans Update from DLA HQ December 2016 USTRANSCOM Channel Study collaboration December 2016 Distribution site at Djibouti, Africa is at FOC January 2017 Establish WALN IOC Capability March 2017 Attend Planning Conferences for JPG exercise involvement June 2017 Complete Annual Plans review June 2017 JPG participates in exercise September 2017

d. Objective - US North Command (USNORTHCOM) - DLA Distribution integrate

capabilities, initiatives, plans, and innovation to successfully posture the organization to support Phase 0 and potential contingency operations in the USNORTHCOM AOR (OPR: J5) Director's Specified Guidance: Execute Global Distribution Strategy and rebalance capabilities to meet CCMD requirements. Enable increased CCMD agility through forward stocking and other supporting initiatives

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i. Desired outcome: 1. Participate in USNORTHCOM, US Army North (ARNORTH), and DLA HQ

command exercises 2. Meet all DLA HQ requirements for USNORTHCOM AOR contingency,

operational, and theater plans 3. Develop mitigation strategy for any risk or gaps identified by USNORTHCOM

and ARNORTH in their analysis of DLA Distribution’s ability to support the associated contingency plans

ii. Metrics, measures, and targets: 1. Meet DLA PLANORD targets 2. Publish Logistics Supportability Analysis on newly published plans as directed

by DLA HQs 3. Publish Distribution Support Plans as directed by DLA HQ 4. Participate in CCMD Exercises as directed by DLA HQ 5. Meet POAM targets

iii. POAM:

Description Completion Date Participate in Joint Logistics Operations Center (JLOC)-led contingency plan (CONPLAN) 3400 Logistics Supportability Analysis and Distribution Concept of Support working conferences

Aligned with DLA

Write CONPLAN 3500 Logistics Supportability Analysis and Distribution Concept of Support November 2016

Participate in National Level Exercise Aligned with DLA Participate in ARDENT SENTRY 2017 June 2017 Continue 3400 and 3500 response planning in accordance with DLA JLOC schedule September 2017

Continue to work with ARNORTH to validate required stocks for Defense Support of Civil Authorities event June 2017

e. Objective - US Central Command (USCENTCOM): (OPR: J5)

1. DLA Distribution integrate capabilities, initiatives, plans, and innovation to successfully support Phase 0 and potential contingency operations in the USCENTCOM AOR

2. Establish and sustain Ground Lines of Communication (G-LOC) in and around the Arabian Peninsula.

3. Determine the best course of action to support US Naval Forces Central Command (NAVCENT) Afloat Units operating in the Arabian Sea and surrounding waters

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Director's Specified Guidance: Execute Global Distribution Strategy and rebalance capabilities to meet CCMD requirements. Enable increased CCMD agility through forward stocking and other supporting initiatives Expand CCMD storage and distribution requirement in four locations: USSOCOM, Oman, Djibouti, and Iwakuni. Enhance capability at DLA Distribution Bahrain to support the TAN as it expands through FYI7 in accordance with USCENTCOM's conditions based approach. Completion targets:



1. Exercise DLA Distribution Mission Essential Tasks (MET) by participating in USCENTCOM, and select subordinate command exercises

2. Exercise the JPG in at least one USCENTCOM exercise 3. Meet all DLA requirements for all USCENTCOM AOR contingency,

operational, or theater plans 4. Improved support to effected units 5. Cost feasible solutions 6. Reduced transportation cost of select materiel

iii. Metrics, measures and targets: 1. All targets in DLA HQ FY17 planning order met 2. All targets in DLA HQ FY17 exercise directive met 3. JPG activated and exercised in support of at least one USCENTCOM event 4. Reduction in use of operational and strategic air assets 5. Improved logistics response time (LRT) to supported customers 6. Reduction in costs and expenses

iv. POAM:

Description Completion Date Establish and mature the TAN Ongoing Planning for CCMD requested Distribution support in Oman FOC October 2016 Normalize materiel inventory functions at DLA Distribution, Bahrain (DDNB) Ongoing

Continue 10X planning and Theater Posture Plan support in accordance with USCENTCOM production cycle December 2016

Support Operation Inherent Resolve (OIR) planning and Operation Freedom Sentinel (OFS) PLANORD development Ongoing

Enhance Syria Train and Equip (T&E) sustainment operations Ongoing

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f. Objective - USTRANSCOM- DLA Distribution integrates capabilities, initiatives, plans, and innovation to successfully posture the organization in support of USTRANSCOM (OPR: J5) Director's Specified Guidance: Execute Global Distribution Strategy and rebalance capabilities to meet CCMD requirements. Enable increased CCMD agility through forward stocking and other supporting initiatives i. Desired outcome:

1. Participate in USTRANSCOM selected exercise 2. Met all DLA HQ requirements for contingency, operational, or theater plans 3. Partner with USTRANSCOM to leverage Campaign Plan for Global

Distribution (CP-GD) 9033 to optimize supply chain performance 4. Establish Trans- Arabian Network ground routes 5. Integrate the West African Logistics Network

ii. Metrics, measures, and targets: 1. Meet DLA PLANORD targets 2. Publish Logistics Supportability Analysis on newly published plans as directed

by DLA HQ 3. Publish Distribution Support Plans as directed by DLA HQ 4. Participate in CCMD Exercises as directed by DLA HQ. 5. Meet POAM targets

iii. POAM:

Description Completion Date TAN – Full utilization of DDNB to support USCENTCOM customers via centralized hub with validated ground routes Ongoing

Continue CP-GD 9033 planning in support of DLA HQ Ongoing Continue USTRANSCOM Campaign Plan for Global Distribution planning in support of DLA HQ Ongoing

CP-GD 9033 – Complete 2016 DLA Distribution review April 2017 CONPLAN 9000 – Complete DLA Distribution review of the 2016 draft May 2017 USTRANSCOM Campaign Plan for Global Distribution- Identification of distribution gaps, submission into the Issue Identification Working Group for actioned by the Distribution Community of Interest (DCOI)

June 2017

g. Objective - Continuity of Operations (COOP) - Maintain and exercise all Continuity of

Operations plans (Continuity of Operations, Pandemic Response, and Devolution plans, and Multi-Year Strategy and Program Management Plan, or Multi-Year Strategy and Program Management Plan (MYSPMP)) (OPR: J5)

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Director's Specified Guidance: Maintain and exercise a COOP plan for operations i. Desired outcome: - Complete, fully integrated, and exercised suite of plans that give

the DLA Distribution commander the broadest range of options in a continuity event ii. Metrics, measures, and targets:

1. Redundancy: primary/backup systems and facilities 2. Communications: phone, computer requirements for Emergency Relocation

Group 3. Test, Training, and Exercises: DLA Distribution meeting quarterly and annual

COOP testing requirements of Federal Continuity Directive 1; 100% employee COOP awareness

4. COOP plan tested against all elements of Federal Emergency Management Agency (FEMA) Continuity Evaluation Tool

iii. POAM:


Update Continuity of Operations, Devolution and Pandemic Response Plans Recurring annual requirement

Perform annual relocation exercise to Alternate Work Facility Recurring annual requirement

Perform Business Impact Analysis and review of Mission Essential Functions

Recurring annual requirement

Maintain Corrective Action Program Recurring annual requirement

Build Multi-Year Strategy and Program Management Plan September 2017

4. Goal Area: Financial Stewardship - Deliver effective and affordable solutions.

a. Objective - Compliance – Managers’ Internal Control Program (MICP) (OPR: J3, OCR: J4/J5/J7/J8/BD/ J6/DLA Installations Support):

1. Continuous improvement of Distribution’s MICP to identify or refine controls that stabilize operations and mitigate risk

2. Enhance the Quality Program to support auditability for operational and financial success to ultimately achieve an Un-modified Audit Opinion

3. Generate Statement of Assurance - site and Distribution Network 4. Active risk management aligned with DLA HQ Risk Management

goals/activities Director's Specified Guidance: Confirm that Standard Operating Procedures (SOPs) are up-to-date and that employees are properly trained on them and follow them. Continue with “best practices” written into Process Cycle Memorandums (PCMs). Ensure that employees are storing evidential matter in the appropriate repository.

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Ensure old data and transactions are properly cleansed from the system. Make sure processes and controls are in place to keep data current and clean going forward. All corrections or adjustments must be justified and have supporting evidential matter that is readily available. Focus on Inventory audit readiness, specifically adherence to inventory policy, procedures and controls. Producing proper evidential matter here is also critical to passing an audit. Emphasize big dollar items first. Remain actively engaged in your organization’s execution and understand the impact on the inventory reconciliation.

ii. Desired outcome: 1. Modified Audit Opinion working towards an Un-Modified Audit Opinion 2. A culture focused on quality and risk mitigation across all operations and

activities. 3. Assurance to customers that Distribution is auditable, adheres to

regulation/procedures, and is a good steward of their materiel 4. Involved Leadership that enforces quality in every activity

iii. Metrics, measures, and targets: 1. Reduced audit failures 2. Reduced variation in critical controls/ substantive testing elements 3. On-time completion of site and network Statements of Assurance 4. On-time completion of site risk assessments at start of the FY and quarterly

updates iv. POAM:


Refinement of quality assurance surveillances (based on new information/regulations/process or controls changes) Continuous

Obtain new tool in J7 Quality Assurance (QA) to better support analytics for the J3 quality program December 2016

Improve analytics capabilities for Quality Control and Quality Assurance March 2017 Execute site visits for audit sustainment testing and education of process adherence / training of Quality Assurance Evaluator (QAE) Continuous

Develop/issue the annual Local Risk Profile for DLA Distribution December 2016 Manage the Completeness Program (Floor to Book (F2B)) 5% sample requirement (Jan - Sep 17) September 2017

Compile statistics for quarterly quality reviews with Distribution Centers Quarterly Compile statistics for and develop annual Statement of Assurance w/ Managers' Internal Control Administrator (MICA) May 2017

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b. Objective - Compliance – Audit Sustainment (OPR: J3, OCR: J4/J7/J8/DLA Installations Support):

1. Revalidate and maintain Audit Documentation, test controls and submit Audit Deliverables – all business cycles

2. Provide response to Independent Public Accountant (IPA) on Provided By Client (PBC) requests

3. Support Services’ IPA audits, as needed Director's Specified Guidance: Confirm that SOPs are up-to-date and that employees are properly trained on them and follow them. Continue with “best practices” written into Process Cycle Memorandums (PCMs). Ensure that employees are storing evidential matter in the appropriate repository. Ensure old data and transactions are properly cleansed from the system. Make sure processes and controls are in place to keep data current and clean going forward. All corrections or adjustments must be justified and have supporting evidential matter that is readily available. Focus on Inventory audit readiness, specifically adherence to inventory policy, procedures and controls. Producing proper evidential matter here is also critical to passing an audit. Emphasize big dollar items first. Remain actively engaged in your organization’s execution and understand the impact on the inventory reconciliation.

ii. Desired outcome: 1. All IPA requirements fully supported

a. SSAE 16 b. Full Financial Statement Audit c. Attest (AT)101/201

2. Performance of business cycle elements for which Distribution is responsible supports DLA achievement of an Un-modified Audit Opinion

iii. Metrics, measures, and targets: 1. 100% of Tests of Design (TOD)/ Tests of Effectiveness (TOE) passed 2. Responses to IPA PBC requests delivered within 2-10 business days 3. Execute Corrective Actions for control/process failures within 60-90 days

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iv. POAM:

Description Completion Date Execution of annual revalidation of Process Cycle Memorandums (PCMs), testing of controls, and submission of deficiencies/Corrective Action Plans (CAP) for each business cycle

Varies by Business Cycle

As required, execute corrective actions on any deficiencies noted as part of PCM revalidation and close CAPs within 60-90 days of failure

Performed quarterly

Respond to all IPA PBC requests (track progress) from Team Kearney & Team Ernest & Young (SSAE 16, Full Financial Statement/ AT101) Ongoing

Implement corrective actions to address quality control/process failures and IPA audit findings within 60-90 days Ongoing

c. Objective - Resource Management-Staffing (OPR: J3, OCR: J1/J4/J8):

1. Right size resources to perform projected workload and become fiscally solvent while achieving the FY17 Net Operating Result (NOR) target

2. Monitor staffing and spending plan execution Director's Specified Guidance: Implement FY17 Programmed Cost Reductions, DOD-directed Full Time Equivalent (FTE) reductions, institutional reforms, and organizational restructuring directives.

ii. Desired outcome: 1. Distribution Centers are properly staffed to complete projected workload and to

meet Audit Readiness/Sustainment requirements 2. Work is completed within plan and budget

iii. Metrics, measures, and targets: 1. Execute staffing levels within 2.5% of planned FY17 FTE 2. Execute spending plans commensurate with achieved workload

iv. POAM:

Description Completion Date Issue FY17 staffing authorizations September 2016 Monitor FTE execution to ensure alignment to workload and adjust as required Ongoing

Program Budget Review (PBR)19 Submission March 2017 Meet program staffing metric September 2017

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d. Objective - Resource Management-Equipment (OPR: J3, OCR: DLA Installation Support):

1. Achieve Vehicle Allocation Methodology (VAM) target goal 2. Right-size the Material Handling Equipment (MHE) fleet via the Deep Dive

process 3. Achieve Defense Property and Accountability System (DPAS) implementation

for MHE equipment by December 2016 4. Promulgate DLA 4216.01 MHE Standard Operating Procedure

Director's Specified Guidance: Right size resources and become fiscally solvent while achieving the FY17 Net Operating Result (NOR)

ii. Desired outcome: 1. Prioritized, enterprise-wide procurement strategy for MHE requirements 2. Right-sized fleet per workload/storage requirements 3. No excess General Services Administration (GSA) and Agency owned vehicles

or MHE in the network 4. DPAS fully implemented for all GSA and Agency owned vehicles, MHE, and

Automated Material Handling System (AMHS) iii. Metrics, measures, and targets:

1. Align DLA HQ directed VAM authorizations to target goal 2. Allocate 100% of Non-Capitol Funding requirements and completed planned

disposals by March 2017 3. 100% completion DPAS implementation by the end of FY17

iv. POAM:

Description Completion Date DPAS implementation GSA , Agency Owned, MHE and AMHS December 2016 Establish licensing validation (sampling) procedure to verify site adherence to the DLA 4216.01 MHE SOP January 2017

Achieve VAM target goals January 2017 Complete FY16 procurement actions and planned disposals July 2017

5. Goal Area: Process Excellence - Achieve Enterprise process excellence

a. Objective - Technology - Explore, assess, and provide requirements for the near term implementation of new technologies, automation and robotics that improve process and operational efficiency in S&D environment. (OPR: J4 OCR: J3/J7/J6) Director's Specified Guidance: Continue to explore and implement warehouse productivity improvements through R&D and integrated technological solutions. Examples include testing and deployment of tablets for warehouse use. Completion target: September 30, 2017

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i. Desired outcome: 1. Production efficiency through the use of J6 provided technology hardware and

software solutions 2. Reduction of operating costs through the use of J6 provided solutions that

realize return on investments 3. Simplified processes 4. Streamlined warehouse operations

ii. Metrics, measures, and targets: 1. Tablet test and use in production areas implemented 2. Continuing to identify new technology and automation requirements 3. Define J6 and DLA Distribution program management transition roles and

responsibilities that support Distribution Advanced Technology strategy iii. POAM:

Description IOC Date

Voice Technology May 2016 Predictive Analysis May 2016 Tablet testing June 2016 Anniston Real Time Location System (RTLS) June 2016 Wireless printers July 2016 Composite Workload Tool July 2016 Warehouse Automation and Robotics Exploration Project (WAREP) January 2017 Eastern Distribution Center (EDC) Simulation February 2017

b. Objective - Safety Program Management (OPR: J3; OCR DLA Installation Support):

1. Add one Voluntary Protection Program (VPP) Star status location 2. Conduct one annual full scale exercise in support of safety and security 3. Reduce Total Case Incident Rate (TCIR) and Lost Time Case Rate (LTCR) by

1% below Agency baseline Director's Specified Guidance: Assist in VPP Star programs. Continue to raise awareness to improve safety and security in the workplace.

ii. Desired outcome: 1. DLA Distribution Red River and Richmond achieve VPP Star status 2. Trained employees in emergency evacuation scenarios and to recognize

deficiencies in Distributions response 3. Safer working environment for Distribution employees in order to decrease lost

days leading to better productivity

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iii. Metrics, measures, and targets: 1. Achieve 1 Star site by end of FY17 2. Successful completion of annual full-scale PLFA exercise in support of safety

and security 3. Achieve FY17 targeted incident rates 1% below FY16

a. TCIR - 3.13 b. LTCR - 1.12

iv. POAM:


Improve workplace safety awareness via full scale exercise March 2017 Safety Training/Monthly Safety Assessments FY17 Monthly VPP Star Site (additional star inclusion) and enrollment at remaining sites September 2017

c. Objective - Security Program (OPR: J3; OCR: DLA Installation Support Security): 1. Enterprise-wide Training

a. Antiterrorism Training – Level 1 (AT1) b. Combatting Trafficking in Persons (CTIP) c. Combatting Trafficking in Persons for Leaders (CTIPL)

2. Security Program Reviews (SPRs) 3. Loss and Crime Prevention

Director's Specified Guidance: Assist in VPP Star programs. Continue to raise awareness to improve safety and security in the workplace.

ii. Desired outcome: 1. Highly trained workforce in the areas of antiterrorism and combatting

trafficking in persons 2. Standardized an active Security Program executed across the Distribution

network 3. Comprehensive Loss and Crime Prevention Program implemented by April

2017 iii. Metrics, measures, and targets:

1. > 99% completion rate for security training 2. > 95% closure of SPR observations by day 90 post-SPR 3. Loss and Crime Prevention Program in place by April 2017

iv. POAM:

Description Completion Date AT1/CTIP/CTIPL Training stats Monthly SPR observations closed within 90 days Monthly Loss and Crime Prevention Program Implementation April 2017 Improve workplace Security (full scale exercise) September 2017

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d. Objective - Process Management - (OPR: DD, OCR: Distribution Directors) 1. Establish a formal system of process management to “design, develop,

standardize, measure, control & improve our core, enabling and management processes”.



Director's Specified Guidance: Improve performance documentation, accountability, system change and access process, standardization, and customer service through E2E Process Management

ii. Desired outcome: 1. Defined and E2E core, enabling & management processes with metrics 2. Managers identified and accountable as Process Managers for E2E process

performance 3. Deputy led Process Council for the overall management of E2E processes (i.e.

governance) a. Establish priorities, goals, objectives & targets; identify improvement

projects; project charters, resources and reviews; process monitoring; technology requirements; equipment & facility needs; training and development; etc.

4. All levels of management have the authority & accountability to improve their processes

a. Based on their “span of control” and “within prescribed limits” set by the overall process managers

iii. Metrics, measures, and targets: 1. Adherence to POAM

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iv. POAM:

Description Target Date Continue to improve the current “Integrated Planning Process” (AOP, Tactical Plans, Operational Briefs, Situation Reports (SITREPS), etc) by using industry methods for business planning.

Ongoing throughout FY17

Establish Distribution Process Council (DPC) December 2016 Develop Distribution Process Management instruction with defined management roles, responsibilities and accountabilities (ex. the role of the process council, management, etc.)

January 2017

Define Distribution core, enabling and management processes with E2E metrics (Level 1) February 2017

Assign Process Managers for level 1 process (ex. Product Development PM is xxx) March 2017

Prioritize, charter, resource, execute, monitor, finalize & document E2E improvement projects (using assigned “Project Managers”).

Ongoing throughout FY17

e. Objective – Disposition and Distribution End-State - (OPR: J3, OCR: Distribution

Centers) 1. Implementation of site level plans identified during CPI visits 2. Get green and stay green on metrics

Director's Specified Guidance: Identify the Disposition and Distribution (D2) end-state. Implement a plan to execute the process improvements identified during initial Continuous Process Improvement (CPI) visits in order to reduce customer wait times and backlog while achieving cost savings. Completion Target: Control Phase - March 31, 2017

ii. Desired outcome: 1. Process compliance with Disposition Services Desk Top Guides 2. Reduction in Customer Wait Times (CWT) 3. Receiving backlog within the five-day standard 4. Achieve cost savings of $4.3M over the Future Years Defense Program

iii. Metrics, measures, and targets: 1. CWT – Under development by Disposition Services 2. Receiving backlog – Less than or equal to 5 days 3. Inventory Accuracy – 98% 4. Compliance – Monthly surveillance checks

iv. POAM:

Description Target Date Site level improvement plans completed March 2017

Enterprise level improvement actions completed March 2017

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End State At the conclusion of FY17 we will have implemented the outlined programs aimed at meeting customer requirements and optimizing total supply chain costs. We will have shaped DLA Distribution in a resource constrained environment to meet future challenges, provided flexible and responsive support, created a resilient organization and achieved and sustained an audit opinion. DLA Distribution will use the FY17 AOP to create more efficient and effective operations to provide the Warfighter the best value.

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Goal Area Risk Description Mitigation

Warfighter First

Distribution Center

Performance

Sustain green/amber performance given forecasted gap in workload (up) & FTEs (down):

• Increase efficiency; CPI events and leadership

• Increase staffing: reservists, overtime, Temps/Terms

• Move workload to Dist. Centers w/ additional capacity

• Track customer feedback

Warfighter First

Foreign Military

Sales

Reliability of USTRANSCOM to establish transportation solutions to support Repair and Return (R&R) mission and shipment of classified and sensitive material

Failure of participating countries to access reliable maintenance for FMS provided assets

People and Culture

People Development

No shared understanding by senior leadership team that a poorly designed vertical & functional structure will continue to impact any effort toward People Development (ex. can’t execute a true managerial coaching and mentoring process with current Structure) & Process Management

Prioritize minimizing structural deficiencies to aid in the development of personnel at all levels

Financial Stewardship

Resource Management-Staffing

Personnel actions and hiring practices may not provide sufficient flexibility to accommodate workload fluctuations

Contract in place for surge requirements until hiring actions can “catch up"

Financial Stewardship Compliance

DLA customer priorities are not properly accounted for and may not be best served by the current Audit Readiness effort

Align Audit Readiness initiatives to better reflect customer priorities

Financial Stewardship Compliance

Workforce culture must support proactive reporting of deficiencies and execution of corrective actions

Continuous emphasis of Compliance to standard procedures and key controls by the entire leadership chain.

Process Excellence

Process Management

Continuous Improvement = Problem Solving and is understood as the responsibility of every level of management (not “CPI program” or someone else's (e.g. a “belts”) job

Creating a culture of problem solving requires a change in the way we do business at every level of the organization

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Process Excellence Technology

Updated/new technology requires a large, up-front investment in order to gain long-term returns

Continually explore and prioritize technologize that provide the largest positive impact on productivity or safety

Documents

DLA Distribution FY 2017 Annual Operating Plan 2017 Annual Operating Plan 2 DEFENSE LOGISTICS AGENCY (DLA) DISTRIBUTION FISCAL YEAR (FY) 17 ANNUAL OPERATING PLAN (AOP) Mission, Vision