Supply Chain Response Time/Footprint Reduction

Pilot projects can achieve significant cost savings through supply chain management process and efficiency improvements. R-TOC Pilot Programs have implemented a wide range of projects to improve the management or efficiency of the system's supply chain. Direct vendor delivery (DVD) contracts, corporate contracts, and other supply chain initiatives can reduce logistics cycle time at the same time it reduces O&S costs.

Supply Chain. Supply chain management process and efficiency improvements, including increased use of corporate contracts, direct vendor delivery (DVD) arrangements, industrial prime vendor/virtual prime vendor arrangements, and reductions in DLA cost recovery rates can result in significant cost reductions at the same time parts availability improves.

Cost of Supply Chain Improvement Initiatives. Many TOC reduction initiatives involving supply chain improvements or footprint reduction involve process changes rather than investments in new hardware and can be implemented without large up-front investments.

Fielded Systems. Mature systems have many opportunities for R-TOC outside of traditional CSMIs/upgrades, including strategic sourcing/supply chain management initiatives and decision support systems that link into the supply chain. However, it can be hard to quantify the savings achieved by initiatives such as these.

Depot Maintenance. Significant O&S cost reductions can be achieved by extending depot maintenance cycles. By grouping depot maintenance activities differently and using actual experience with systems in the field, it may be possible to extend these cycles without impacting system performance or reliability.

Lean Depot Practices. Savings/Cost Avoidance and decreased flow-days in Depot Maintenance, resulting from Lean Production initiatives, will result in increased aircraft availability, but not necessarily a dollar savings for the user.

Commercial Maintenance Agreements. Commercial maintenance agreements can provide incentives for contractors to improve reliability and availability and reduce TOC.

Reliability Centered Maintenance (RCM). Reliability centered maintenance initiatives can reduce the requirements for routine maintenance. One Pilot Program expects to save 120,000 maintenance manhours per year and reduce system downtime by switching to this concept.Electronic Maintenance Aids. Interactive electronic tech manuals (IETMs) and other electronic maintenance aids can reduce the time and cost of performing maintenance tasks, improve training of maintenance personnel, and accommodate changes easily and quickly.