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Air Commodore Rob Woods OBE Chief of Staff (Air), Defence Equipment & Support Royal Air Force the Team…

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A Warfighters View: Weapon System Availability – A Collaborative Challenge

Air Commodore Rob Woods OBE

Chief of Staff (Air), Defence Equipment & Support
Royal Air Force

The Team…..

Mr Richard Hamilton
BAE Systems plc

Air Cdre Rob Woods
MoD DE&S

Mr Geraint Spearing
MoD DECA

Gp Capt Simon Vicary
MoD DE&S

Mr Ian Cole MoD DECA

Mr Ian Manley
MoD DE&S

UK Defence Equipment & Support (DE&S)

“To equip and support our Armed Forces for operations now and in the future”

DE&S’s Role

• Procure & support equipment, through life, for UK’s Armed Forces for both current & future operations

• MOD’s lead department for commercial activities

• Manage relationships with MOD, the Front Line & Industry

DE&S HQ, MOD Abbey Wood, Bristol, UK

DE&S Budget to Spend 2019/20

• £10.8 Billion Core Spend:
− £5.4 Billion for Purchase of New
Equipment

− £5.4 Billion for Equipment
Support

• £3.9 Billion budget for Air Domain, 56% of which for Support

Air Domain Portfolio

Backdrop for Transformation in Support: 2000-05

• Strategic Defence Review 1998
–Smart Acquisition
•Similar lessons learnt over multiple operations; urgent need to improve

• DLO Strategy
•Increasing demand for UK military

capability across the globe
–20% Savings & ‘Transformation

Staircase’
•Nature of operations changed

•Need to find efficiencies
• Air & Land End-to-End Review • Defence White Paper 2004 • Government Efficiency Review 2004 • Formation of DE&S
– Preserve current & future capability

End-2-End Review of Air & Land Logistics - 2003

• Simplified lines & levels of support

- From 4 x Lines of Maintenance to 2 x Levels: Forward & Depth

• Creation of Depth Support Hubs for platforms

- Tornado @ Marham and Harrier @ Cottesmore

• ‘Contracting for Availability’

- Tornado Future Support - ATTAC Phase 1 & ROCET

• Reliable & consistent supply chain

- Reduced in-theatre delivery Op TELIC from 4-7 to 1-2 days; in
NW Europe from 28 to 7 days

• Application of ‘Lean’ techniques

- Training & migration to Continual Improvement

National Audit Office Report - Jul 2007

‘Transforming Logistics Support for Fast Jets’

“The Department made significant reductions in the cost of support to fast jets; the Tornado and Harrier Project Teams’ costs reduced from total of £711M in 2001-02 to £328M in 2006-07,

providing cumulative savings of some £1.4Bn over the 6-year period.”

“The Department has continued to achieve broadly the same level of performance in terms of flying hours throughout the transformation. On this basis, the Department’s transformation of

logistics support represents good value for money to date

…although there are risks…”

2003-11: Air Efficiency – Target v Achievement

£M
500
Achieved
400

Target
300
DLO/

DE&S
200

100
Front Line

2003/04

  • 04/05
  • 05/06
  • 06/07
  • 07/08
  • 10/11

•

11

The UK’s Support Transformation Staircase

Today’s Support Solutions

• Relationship between DE&S and Industry largely stabilized; ‘post-
Levene’ relationship between DE&S and Air Cmd still in work

• Have developed areas where analysis of Perspectives 1 & 2 match, and increasingly tailored contracts on proven ‘good practice’:

– Governance is key: Programme Boards now regularly making tough decisions; SDSR
2015 provided real opportunities to grow capability

– CEO DE&S has driven the ‘S’ back in DE&S – Set requirements early on - focus on teamwork, transparency & trust between SROs &
DE&S Delivery Teams

– Coherence in Deployed Space, and greater emphasis on Safety

Continuing Efficiencies Realised in Support

Attack Helicopter

IOS: 21% savings over 5 years - Dec 14
Hercules IOS: 17% savings over 6 years - Dec 15

ATTAC: 18% savings to Out of Service - Jul 16
Merlin IOS: 20% savings over 5 years - Apr 15

Chinook TLCS:

23% savings over 5 years - Jan 15
Hawk Support: 8% savings over 4 years - Mar 16

TyTAN Launch - July 2016

An Industry View: Weapon System Availability – A Collaborative Challenge

Mr Richard Hamilton

Manufacturing & Support Director, BAE Systems plc

Typhoon Total Availability Enterprise (TyTAN)

•

10-year deal for all aspects of Typhoon operational support

– Brings together several legacy contracts into one arrangement

– 10 year framework allows industry to make long term investments to optimise support

••

Target price 38% lower than previous arrangements
– Unachieveable through “business as usual” negotiation with single-source supplier

Reinvestment of support savings directly in platform capability development

The Challenge

For the UK MOD

SAVE MORE

• Funding stream for UK Typhoon Support insufficient

Reduce Operating Costs

based on current run rates
• Tornado Out of Service Date driving required Typhoon

Capability Enhancements
• Operational commitments driving need for improvements

to how Typhoon is operated in the UK Fleet

  • DELIVERMORE
  • SPENDMORE

Increase Competitive Advance
Reinvest Savings in Capacity

For BAE Systems

• Driving recurring support costs down will allow recycling of c.£0.5bn into capability programmes

Enhance Typhoon Product

• Enhanced operational effectiveness of the Typhoon weapon system to support UK RAF requirements
• Typhoon Export sales dependent upon cost efficiencies being

realised

DO MORE

TyTAN – A Step Change in Typhoon Support – Joint Plan

•

Agreement signed Jul 2016
Replaced existing multiple support contracts with a single output-based availability service Jointly developed by BAE Systems and MoD under Future Support Operating Model project during 2015/16

••

Delivers flying hours, simulator availability and pilot training in support of the Typhoon Force Command Plan Transformation programme a critical enabler
Enterprise “One Team” integrated approach to ensure success ‘Enablers’ are multi-organisational in nature Investment of cash; energy and leadership

TyTAN Features & Performance Management

••

Highly integrated enterprise approach (BAES/RAF/DE&S)

Only one main Performance Indicator - Pay Per Flying Hour

FLYING HOURS
NON-FLYING SERVICES

– Simple measure that is used to drive delivery and behaviour

– Other indicators used for management information only

COST
RESILIENCE

•

“Key Resilience Indicators” act as safety net to protect military output and operational flexibility

CONTROL

– e.g. Bank of Hours, Inventory health

TyTAN - Performance Management

  • Payment
  • Governance

• Flying HourAchievement
•KPI 1 - Training andMission

Support •KPI 2 - Airworthiness &Safety •European OPMI

Non-flying
Flying

Services
Hours

Deliver...

One
Enterprise

Whilst ensuring...

Cost Control
Resilience

Key Resilience
Transformation

Indicators

• Continuous Improvement

  • • Recycling for capability
  • • KRI 1 - Flying HourResilience

• KRI 2 - Supply Chain Resilience • KRI 3 - Safety & Availability

Modifications Embodiment

Typhoon Total Availability Enterprise (TyTAN)

• 10 year, Output Based contract with Price Per Flying Hour (PPFH)
• 40% Savings reinvested into future capability • Output based services (Flying Hours and

Simulator Availability)
• Avionics provider (Leonardo) fully integrated into the Joint Avionics Service (JAS)
• Long term deal providing better incentives for Transformation
• Operates as a single Enterprise (BAES, RAF and DE&S)

Enterprise Enablers

25

Enterprise Leadership

TyTAN RSO

Typhoon Force Commander Air Cdre Mark Chappell

••
FH achieved Recycling for capability

No 1 Group Delivery Lead

DE&S

Delivery Lead
BAE Systems Delivery Lead

UK Support (TyTAN) Delivery
Director
Deputy Force Commander

Gp Capt Jez Milne
Deputy Head FAST – CapSust
Ian Manley
Alison Ballard

•••
CP & IYDP Transformation Fly the Plan
•••
Contract Management European interfaces Strategic Support Planning
•••
Service delivery Transformation Cost reduction

Relentless focus on:

Doing the right thing, at the right time, in the right place
Driving out/avoiding waste Delivering the Command Plan

26

Joint Governance Structure

6-monthly

2-Star
TyTAN Review

TyTAN Senior
Perfomance Review &
Quad

Monthly with every 3rd meeting being 1* Quad

Enterprise Operation and Transformation
Review

Monthly Monthly

Enterprise Strategic Planning Cell
Review
Operation
TyTAN Change

Review Board
Fin/Comm
Performance

Review
Working Group
Blue Box - Reviews - Service Delivery Team Leads

27

Transformation Cultural Change – The Challenge

Changing legacy cultures and behaviours key to TyTAN’s success

Three dimensions of change;
BAE Systems – DE&S – Air Command BAE Systems Front Office vs Back Office European Collaboration

Requires all teams to be focused on the priorities of the solution;
Flying Hour & Pilot competency Maintaining Airworthiness Achieving Transformation & Efficiency Enabling Recycling for Capability

From Customer / Supplier to Partnering to Enterprise

28

TyTAN – What have we learnt?

•

••

Early alignment of objectives (around operational output) is crucial

Re-investment of support savings is a powerful incentive to all

Trust takes time to build; transformation and cultural change is a c5 year process; long term security is needed to enable investment

Relentless focus on:

Doing the right thing, at the right time, in the

right place, with the right behaviours

•••

Customer has to change too and work in a highly integrated way with industry for the common good

Driving out / avoiding waste

Leadership demonstration of changed behaviours essential

Delivering the Operational Output

All parties need a mature understanding of each other's business, motivations and cost drivers

29

Conclusions & Future Relationships

• Identify good practice inter-organizationally & adopt it • DE&S and Industry will continue working together: trust achieved through shared values - ‘win-win criteria’ - clear contracted responsibilities & open communications

• Innovation & coherence - together

• Consider intelligent support on future Foreign Military Sale platforms • Remain flexible - resources likely to need further balancing • Make Plan A work; reflect that perhaps there never was a Plan B…

“The Snowplough Test”

Question. Who gets the snowplough out in the morning ? Answer. It’s now our industry partner because……

……..it’s in their interest for us to fly!

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