Thesis Presentation for the Degree of Master of Science in ...academy.amccentre.nl/thesis/presentatie/Presentation_I_A_Khrystova.pdf · Thesis Presentation for the Degree of Master

Thesis Presentation for the Degree of

Master of Science in Asset Management Control at the Hogeschool Zeeland

Prepared by ing. I.A. Khrystova

Scientific Supervisors: Ir.P.J.T. Bakker, MSc

Ir. Peter Van Gestel, MSc Expert Supervisor: ing. P.J. Kense, MSc

Contents

• Introduction

Research topic;

COTS background and COTS definition;

Field of research;

• Research approach

Statement of the problem;

Research question;

Research model and sub-research questions;

Research strategy and study cases;

• Results from the literature review, criteria X

• Current policy summary, criteria Y

• Assessment of the study cases and assessment findings

• Conclusions and recommendations

• Reflection on research

• Questions

11 January 2012 Thesis presentation 2

Research topic

Commercial off the Shelf (COTS) policy at

DMO: consequences of implementing COTS

products and components in naval military

assets


Definition of COTS

“COTS items are commercial items that have been sold, leased, or licensed in substantial quantities in the commercial marketplace and that are offered to the Government without any modifications.”

COTS benefits:

Elimination of the need to invest in the development and support of unique items;

Lower risks since the product is already established;

Integration of new or latest technology (which is probably the most important benefit for Defence organisations);

Reduced cycle time;

Lower life cycle costs;

Improved reliability and availability;

Access to commercial support services.


Field of research

Director

DMO

Directorate of Projects &

Procurement

Projects Branch Procurement

Branch

Government Quality Assurance

Division

Directorate of Weapon Systems

Sea Systems Branch

Land Systems Branch

Air Systems Branch

Directorate of Logistics Agencies

Naval Maintenance & Service Agency

National Supply Agency

Woensdrecht Logistics Centre

General Support Branch

Directorate of Materiel Policy

Directorate of Planning and

Control

Directorate of Personnel&

Organisation

Transition Manager


Statement of the problem

Absence of an unified and streamlined COTS policy results in:

• Lack of clear definition what is understood under COTS and how to

deal with this group of products;

• Form-Fit –Function replacements are almost never available;

• Suppliers consider any electronic component as COTS for the

systems being purchased in accordance to MIL SPEC ;

• Overpricing of COTS components;

• Lack of transparency how to trace OEM to buy COTS directly;

• Lack of clear replacement strategy due to a shorter life cycle of

COTS and the rapid occurrence of obsolescence;

• Knowledge about COTS is fragmented and not centralized.


Research question

What are the consequences of implementing COTS products

and components in naval military assets and what is the impact

on the effectiveness of the maintenance process?


Research model


Subresearch questions 1 & 2

1. Which criteria for the

effectiveness of the

maintenance process with

respect to performance

preparation will be considered

in view of implementing COTS

products and components in

naval military assets?

2. To what extent does the

current policy comply with

those criteria?


Subresearch question 3

3. To which extent does the

maintenance process in each

of the study cases comply with

the set of criteria derived from

the research question 1?


Subresearch question 4

4. What have we learned from

the analysis results of study

cases (Z1, Z2, Z3, and Z4) in

view of the maintenance

process effectiveness in

relation to COTS?

What are suggestions and

recommendations for

improving of the maintenance

process effectiveness and of

the COTS policy?


Research objectives

• Surveying the expectations of the stakeholders;

• Understanding the issues which occur during the exploitation and

maintenance phase of military assets in relation to COTS;

• Investigating backgrounds and causes of those issues;

• Examining if the current maintenance policy in relation to COTS

items is effective (IST);

• Determining principles and selection criteria to structure and

systematize the COTS process in order to mitigate risks related to

the obsolescence character of COTS products;

• Analyzing the current process and make recommendations for

Target (SOLL) situation.


Study cases

• Air Defence and Command

Frigate (LCF):The Active

Phased Array Radar(APAR)

• Patrol ship(PS)Integrated

Sensors and Communication

Suite (ISCS)

• Mine Hunters (PAM): SPVDS

• Hydrographic Survey Vessel

(HSV): Integrated Bridge

Management System


http://www.google.com/imgres?q=APAR&um=1&hl=nl&sa=N&biw=1366&bih=531&tbm=isch&tbnid=Qk5ZcYp2dg_mRM:&imgrefurl=http://www.navalhistory.dk/english/navynews/2006/0622_patrolships.htm&docid=PB3vIUnxR2PcrM&w=200&h=312&ei=VoUpTrqxGMaUOvTw6OIK&zoom=1

Criteria X


Business

Engineering

Contract

Program-wide

COTS price assessment, Risk identification approach and impact on maintenance, COTS technology insertion and

its planning during the life-cycle Knowledge management, information sharing

Main delivery contract with supplier, Type

of support contract with

supplier, Contract

surveillance and evaluation

approach

Supportability analysis, COTS ILS Support, Test equipment Support, COTS reliability, COTS maintenance and replacement strategy, COTS obsolescence strategy, COTS failure and fault

registration, Technical development on the market

COTS definition and COTS

categories, Relationships

with suppliers, COTS costs and

method of control

Current policy summary

Logistics guideline “Obsolescence management” issued in

September 2009

Has a temporary status until ILS plans are amended;

Is based on the stipulations from the STANAG 4597 “Obsolescence

management” and two TNO reports;

Covers strategic objectives.

Guidance MEDDMKM 23 version 1.0 issued in December 2003

Gives a broad overview of COTS issues;

Pays attention to market knowledge, ISS contracts;

Has seven appendixes and therefore is less conveniently arranged;

Is written for the old structure of the organization.


Criteria Y


Acquisition Sustainment

COTS Replacement

strategy, Supplier

responsibilities ILS support for

COST replacement strategy;

Obsolescence risk analysis

ISS contract with supplier;

Price indexation method for spare

parts; Performance

registration and analysis of

obsolescence; COTS obsolescence

problems and technical meetings;

Link of COTS replacements with

system modifications COTS components

obsolescence method

Assessment criteria


18 CRITERIA (X) 10 CRITERIA (Y)

18 ASSESSMENT CRITERIA BUSINESS ENGINEERING

CONTRACT

PROGRAM-WIDE

Study cases assessment

18 Assessment

criteria

Check list questions

Gap analysis template


Identify current

standings

Identify objectives

Create plan of actions

Data analysis

GAP analysis template example

N Activity area

Assessment criteria

Check list questions

Study case

Yes Partly No N/A Remarks and comments

1. Business 1.1. COTS definition and COTS categories

Is there any definition given regarding COTS products?

Z1 X Set up a process

Z2 X

Z3 X

Z4 X

1.2 Relationships with suppliers

Is only one contractor involved in the process?


Z2 X

Z3 X

Z4 X

1.3 COTS costs and method of control

Is there any method applied on how to control costs of the COTS products?


Z2 X

Z3 X

Z4 X


Summary of findings 1


Summary of findings 2


Conclusions

For the short term:

• Establish an internal “COTS management” policy ASAP taking into consideration existing policy documents and practices in the organisation;

• Revise “Obsolescence management” and the Guideline MEDDMKM 23;

• Make it obligatory to specify COTS requirements in requests for quotation (RFQ).

For the long term:

- Set up a COTS management/obsolescence group, which will be specialized in: - new developments in this domain; - program-wide approach; - technology insertion and eventual risks. - Look for an international cooperation.


COTS policy in the scope of

Total Quality Management


Recommendations

Definition:

COTS in military systems are products and components which are :

developed in accordance to the latest technological achievements,

integrated in military assets without or with minor modifications;

having limited visibility into reliability and frequency of their new updates;

creating interdependencies.

Considerations:

COTS require a proactive approach during development, acquisition , and being very crucial during the exploitation phase of military assets;

COTS proactive approach imply strong policies from the side of suppliers and organizations for:

planning of COTS replacements;

mitigating of COTS obsolescence issues,

indicating financial consequences;

specifying COST support elements in contracts.

In order to achieve effective maintenance process for the naval military assets considering use of COTS products and components, minimum 75% of the criteria specified for the assignment of the study cases are to be met:

Effective maintenance process = f (Business, Engineering, Contract, Program-wide Activities and Criteria)


Tactical recommendations

• 23 recommendations




Business Engineering

Contract Program-

wide


COTS life cycle model


Reflection on research

This research is facing a challenge;

The whole process is a learning loop whereby the abstract theory

has been tested in practice;

The scope of the research was very ambitious;

It was an intention to investigate how the obsolescence

management has been set up by other NATO countries;

This research is a qualitative assessment aimed at process;

A major point to conduct a quantitative pilot study investigating

financial consequences of COTS usage


Questions


Documents

Thesis Presentation for the Degree of Master of Science in ...academy.amccentre.nl/thesis/presentatie/Presentation_I_A_Khrystova.pdf · Thesis Presentation for the Degree of Master