High-Performing Organization: High-Performing Organization Transforming Logistics Through the HPO 9 January 2006 2006 Installation Management Institute Ray Urena U.S. Army Corps of Engineers


The US Army Corps of EngineersVision Statement: The US Army Corps of Engineers Vision Statement “The world’s premier public engineering organization responding to our Nation’s needs in peace and war.” A full spectrum engineer force of high quality, dedicated soldiers and civilians: Trained and Ready Vital Part of The Army Dedicated to Public Service Army Values-Based


The US Army Corps of EngineersUSACE Operations: The US Army Corps of Engineers USACE Operations One Corps Serving the Nation and the Armed Forces Spectrum of USACE Operations WAR PEACE WATER RESOURCES ENVIRONMENT DISASTERS WARFIGHTING INFRASTRUCTURE Building and sustaining the critical facilities for military installations and the public Creating synergy between water resource development and environment Restoring, managing and and enhancing ecosystems, local and regional Responding to local, national and global disasters Providing full spectrum engineering and contingency support


Slide4: Homeland Security Critical infrastructure Anti terrorism planner The infrastructure Security partnership USACE Missions


Slide5: Pacific Ocean Div (PACOM) South Atlantic Div (SOUTHCOM) Mississippi Valley Div North Atlantic Div (EUCOM) Great Lakes & Ohio River Div Alaska Seattle Walla Walla Portland San Francisco Los Angeles Honolulu Albuquerque Omaha Kansas City Tulsa Ft. Worth Galveston Little Rock St. Louis Rock Island St. Paul Vicks- burg New Orleans Mobile Jacksonville Savannah Charleston Wilmington Norfolk Philadelphia New York New England Detroit Buffalo Baltimore Pittsburgh Chicago Memphis Nashville Louisville Hunting- ton Sacramento Atlanta Dallas Cincinnati MACOM Overview Northwestern Div South Pacific Div OCONUS Districts: Europe (Germany) Far East (Korea) Japan Afghanistan 3 in Gulf Region Div (Iraq) Southwestern Div (CENTCOM) 2 ENCOMs


Slide6: SOUTH AMERICA BRAZIL PARAGUAY NORTH AMERICA CANADA GREENLAND DOMIN. REPUB. HAITI JAMAICA MEXICO GUATEMALA NICARAGUA PANAMA EL SALVADOR HONDURAS COSTA RICA EUROPE UNITED KINGDOM NETHERLANDS DENMARK NORWAY SWEDEN FINLAND ESTONIA LITHUANIA POLAND HUNGARY MOLDAVA ROMANIA MACEDONIA ALBANIA BULGARIA AUSTRALIA NEW ZEALAND EUROPE RUSSIA UKRAINE BOSNIA KOSOVO GERMANY ITALY BELGIUM AFGHANISTAN SOUTH AMERICA COLUMBIA EQUADOR PERU BOLIVIA ARGINTINA ANTARCTICA WEST AFRICA SENEGAL GHANA MALI NIGER CAMEROON CENT. AFR. REP. EAST AFRICA EGYPT ERITREA CHAD KENYA RWANDA OCEANIA GUAM ASIA GEORGIA TURKEY ISRAEL JORDAN SAUDI ARABIA KUWAIT BAHRAIN QATAR JAPAN SOUTH KOREA ASIA U.A.E. OMAN INDIA VIETNAM PHILIPPINES KAZAKHSTAN AFRICA NIGERIA MOZAMBIQUE OCEANIA EAST TIMOR MICRONESIA MARSHALL ISL REP. OF PALAU N. MARIANA IS. PUERTO RICO AFGHANISTAN IRAQ USACE Around the World


What is the US Army Corps of Engineers?: What is the US Army Corps of Engineers? HQ 9 Divisions 45 Districts Civil Works Energy & Water Devel. Approp. $6.3 B 25,000 personnel Military Programs DOD & Mil Construction Approps. Support for Other Fed. Agencies Reimbursable $13.5 B 10,000 personnel Centrally funded Project funded 250 Army officers “Self-leveling” Workforce based on Workload Contractors execute 65% of architect-engineer services & 100% of construction An organization unique in the world: Expert civilians led by small officer corps


Slide8: FEMA’s Engineer Typical Mission Areas: Ice Water Emergency Power Temporary Roofing Temporary Housing Technical Assistance Debris Clearance and Removal Western Fires ‘94 Northwest Floods ‘96 Oakland Fires California- Nevada Floods ’95 ‘97 Northridge Earthquake El Nino ‘98 Red River of the North Floods ’97 Midwest Floods ’93,’95, ‘97 Oklahoma City -Bombing ’96 -Tornado ‘99 Los Alamos Fires ‘00 Texas Floods Bret Arkansas Tornados ‘99 LA/MS Floods ‘97 Danny Mitch ’97 Ohio River Flooding Georgia Tornados ‘98 Northeast Ice Storm ’98, ‘01 Northeast Flood ‘96 TWA Flight 800 Blizzard of '96 Floyd Dennis Fran Bonnie Irene Georgia - Florida Floods ‘94 Georges Typhoon Paka Guam Earthquake Washington Nisqually EQ Devil’s Lake ND Flood 2001 Spring Flooding TS Charlie Harvey Lenny Jose Hortense WTC 9-11 WV Floods Support to the Nation and the Armed Forces Disaster Response – The Last 10 Years 2005 Hurricanes Dennis Emily Katrina Rita Wilma


High-Performing Organization: Why the HPO? Why us? President’s Management Agenda FY 2002 OMB Circular A-76 DoD Inventory of Commercial and Inherently Governmental Activities Why now? July 2003 OMB report with the Army’s competition plan reflecting mission and workforce FY 2005 announcement of Logistics A-76 competition Acceptance of challenge to develop HPO – June 2005 Who is affected directly? All CONUS based USACE logistics employees (Includes Hawaii and Alaska) Who will benefit? The entire Corps because of re-engineered processes FEMA, DHS, USACE Mission Teams (restructured planning/response strategy) High-Performing Organization Why is the HPO approach preferable to the normal A-76 process? Benefits leveraged in the HPO approach (faster, better, cheaper, safer) Economy of scale & program/process consistency Employees do not have to compete with private sector for their jobs USACE improvement of logistics Civil Emergencies and Military Contingencies response capability Excluded elements All Overseas (Far East, Japan, Europe, Afghanistan, Gulf Region Division and associated districts) Districts, Transatlantic Center, Washington Aqueduct Office, and 249th EN BN (Prime Power) are exempt from the study Excluded elements will be impacted by the new business processes


High-Performing Organization: Results Matrix Flat/Horizontal External Focus Empower Workforce Proactive Behavior Leverage Technology Share Knowledge (Learning) Manage Risk Partnerships Constructive Labor/Management Environment Re-engineer processes Results orientated (Customer orientated) Streamlined (Variation reduced) Standardized (Uniform output) Optimized Responsive (Fast throughput) Lean (Reduces waste) High Performing Organization High-Performing Organization


High-Performing Organization: HQUSACE & MSCs perform Management & Oversight Process Districts/Centers/Lab/FOAs perform the following functions Supply Travel Transportation Maintenance Facility Management Limited Civil and Military Response Support Current Logistics Business Process Model (CONUS) DISTRICTS MSCs HQUSACE Centers/Lab/ FOAs Future Logistics HPO Business Process Model (CONUS) HQUSACE & USACE Logistics Activity (ULA) Performs the Management & Oversight of functions Logistics Activity Center (LAC) Supply Travel Transportation Maintenance Civil and Military Response Processes Regional Logistics Liaisons (RLL) & Logistics Delivery Points (LDP) Provide onsite logistic support High-Performing Organization HQUSACE ULA


High-Performing Organization: Transportation Centralized management of Centrally Billed Accounts (travel) Centralized PCS/TCS/Passport/Visa processing/management Centralized Foreign Travel Clearance processing Centrally managed, locally dispatched Vehicle Fleets Facilities Master Planning centralized Space Management centralized, facility care/maintenance locally managed Centrally managed support contracts Maintenance Centralized maintenance management Centrally managed maintenance contracts to include aircraft maintenance Logistics Delivery Points are HPO assets Onsite, multi-skilled, dedicated direct support team Major Process Changes (Business Process Reengineering and Value Stream Mapping) High-Performing Organization


High-Performing Organization: Supply Property book management centralized Implement Army property threshold policy DOD three-year inventory cycle implemented Enterprise personal property asset management Centralized management of capitalized assets (Chief Financial Officers Act) Contingency/Emergency Capabilities Dedicated military/civil contingency staff planners Simultaneous multiple civil & military responses 75% of workforce designated emergency essential Professional logistics emergency response staff Major Process Changes (Business Process Reengineering and Value Stream Mapping) High-Performing Organization


High-Performing Organization  Logistics Organization as a HPO …: High-Performing Organization Logistics Organization as a HPO … Total 412 USACE Logistics Activity (FOA)


High-Performing Organization Logistics Organization as a HPO… Logistics Activity Center (LAC): High-Performing Organization Logistics Organization as a HPO… Logistics Activity Center (LAC) Total 117 Logistics Activity Center (LAC)


CURRENT CONDITIONCivil Emergencies/Military Contingencies Staffing Guide: CURRENT CONDITION Civil Emergencies/Military Contingencies Staffing Guide Current Doctrine: Field Force Engineering Logistics Support Teams (LST) and Civil Logistics Planning and Response (Teams) members are drawn from a volunteer pool that crosses functional lines. There is no required minimum number of logistician team members before crossing functional lines to staff the LPRT & LST. High-Performing Organization


2005 Deployed Logistics Emergency/Contingency Resources: 2005 Deployed Logistics Emergency/Contingency Resources Current Doctrine: Logistics Support Teams (LST) and Logistics Planning and Response (Teams) members are drawn from a volunteer pool that crosses functional lines. 2005 Deployed LPRTs consist of more Non-professional Logisticians and Additional Volunteers than professional Logistician regular LPRT members High-Performing Organization Future Current


Civil Emergencies/Military Contingencies Staffing Guide: Civil Emergencies/Military Contingencies Staffing Guide Current Logistics Posture Disadvantages: All volunteer force Piecemeal deployment of teams dissolves team cohesion Pick-up teams delays response Regional business approach requires team in entirety Future Logistics Posture Advantages: Dedicated, trained, professional logisticians (75% required deployable logisticians) Planned deployment provides synergy, team cohesion, building on previous experience, & succession planning Deployment is position requirement and insures immediate response USACE national business approach allows for multiple deployment plans Provides for exercises and planning Contractor (Logistics Civilian Augmentation Program), USACE volunteers and retired annuitants support for surge requirements High-Performing Organization


HPO Emergency/Contingency Response Process: HPO Emergency/Contingency Response Process Liaison is conduit to support all regional issues One Door to the ULA High-Performing Organization


HPO Savings: HPO Savings Manpower (Full Time Equivalent) Present: 538 Future: 412 Estimated net labor savings in five years: $45M Estimated net FTE labor savings: 126 within HPO Estimate prepared using OMB COMPARE software which adjusts for inflation Indirect Benefits – Estimated Command-Wide 5 Year Cost Avoidance $30M


High-Performing Organization: Empowers a workforce of professionally trained logisticians Improves organizational flexibility and depth Promotes and enables focus on the customer Reduces long-term logistics costs Enables USACE commanders and leaders to redirect resources Incorporates Lean Six Sigma HPO Concept Benefits High-Performing Organization


High-Performing Organization: Cultural and Operating Changes Finalizing Human Resource Plan Selection of Physical Location Challenges High-Performing Organization


High-Performing Organization : High-Performing Organization Stand-up to End State


Logistics Management High Performing Organization (HPO) Timeline: Logistics Management High Performing Organization (HPO) Timeline


Logistics Management High Performing Organization (HPO) Timeline: Logistics Management High Performing Organization (HPO) Timeline


High-Performing Organization: High-Performing Organization QUESTIONS?