Original Date: 02/24/1997
Revision Date: 04/14/2003
Information : Ammunition Business Process Re-Engineering
The Army Industrial Operations Command (IOC) manages conventional ammunition and related items throughout their life cycle for all DoD services, including supplying ammunition from production to storage and on to the front lines. The IOC is in the process of implementing a computerized manufacturing resource planning system (MRP II) throughout the Command to improve its on-time deliveries and reduce delivery lead times.
The current system to be replaced is an analytical and administrative procedure that determines program prices, prepares budgetary documentation, develops production schedules, monitors program performances, ensures end item delivery to the customer, and generates bills of material. The system consists of manual/semi-automated processes and fragmented automated information systems. This is complex and labor intensive. Another major problem is that anybody can make changes to the system.
Congressional inquiries, downsizing, and limited resources in the early 1990s lead to the need for system improvements and efficiencies. The IOC acquired a contractor to provide the technical advice and support for the program. Systems planning, implementation, and utilization practices of other companies were studied and benchmarked. Lessons learned were analyzed and applied to establishing a good plan and understanding of the system. Improvements were identified in the areas of simplifying and standardizing processes; eliminating redundancy and duplication; and improved personnel productivity. Efficiencies would be met through the adoption of an integrated automated system. Examination of the IOC’s internal processes and the downstream effect on other installations lead to the selection of a PC-based system using off-the-shelf Cincom Control MRP II software. Targets for improvement include: Resource Management: Apply standard/consistent control policies established for finance, order acceptance, production, inventory, purchasing, and engineering.
Price and Budget Development: Replace manual system with automated pricing development, automated budget processing, and variance analysis.
Processing Customer Orders: Reduce ordering process to one day.
Plan/Monitor Program Execution: Automate tracking of production order status.
Manage CAWCF Inventory: Inventory management becomes a system driven activity.
Customer Service: Improve responsiveness of information to less than two minutes.
Projected benefits are the elimination of variations in data between systems; on-line ability to track orders; improved accuracy and accountability; standardized and streamlined processes; reduced response time to customers; reduced number of report revisions; improved communications; and an integrated systems/relational database.
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