| Defense Agency
Saves More Than $10 million with Reduced
Manpower Requirements |
| Organization: Defense Agency |
| Sector: Armed Forces |
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| Challenges |
 |
Manual efforts slow down cataloging
process and increase costs |
|
Duplicative work requires additional
staff |
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Output limitations increase time to
deliver information |
|
| Results |
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Reduce DoD spending by $1 billion |
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Make information available faster
by reducing information delivery time |
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Reduce manpower requirements, for
additional $10 to $20 million in savings |
|
Standardize the process
to eliminate dependence on just a few
trained staff |
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Leverage standard technologies
and frameworks and provide future growth
path |
|
The Defense Agency
uses a well-established process to
create and maintain information catalogs
used by all Department of Defense
(DoD) agencies to procure parts, primarily
for weapons systems. This centralized
catalog makes the most efficient use
of available stock and eliminates
costly inefficiencies that would result
if each branch of the armed forces
maintained its own information resources.
With Defense Agency as the premier
DoD logistics information broker,
the catalog process has evolved over
decades to meet the changing needs
of federal agencies. In order to better
serve these agencies and streamline
operations, Defense Agency continually
seeks to update and improve the process. |
|
| Business
Challenges |
An essential component
of the catalog is what is known as characteristic
data. This data is used to distinguish
one item of supply from another in the
catalog. Characteristic data is created
and maintained in a tool called a Federal
Item Identification Guide (FIIG), which
is used by catalogers from Defense Agency,
GSA, and other agencies to categorize
items in the federal catalog.
Currently, the process used to create
and maintain these FIIGs still relies
on manual operations and consumes excessive
staff time. At the same time, it places
responsibility for the process in the
hands of just a few people with a very
fine skill set. This creates information
flow bottlenecks and places the agency
at risk of having just a handful of
people trained and experienced enough
to handle important parts of the process.
In addition, there are duplicative efforts,
with two systems that require independent
inputting of the same information. Finally,
it takes several weeks to distribute
catalog information in the single format
now available. Defense Agency wanted
to streamline the current process using
standard technologies. They anticipated
solving several problems with this approach,
but needed to identify the best way
to accomplish their goals. |
|
| CellExchange
Solution |
Defense Agency participated
in CellExchange's three-week Cambridge
Executive Workshop (CEW), during which
they developed prototype solutions to
automate and streamline the process.
CellExchange conducts the CEW, a powerful,
collaborative forum, to help organizations
improve their operations and leverage
valuable assets. The Cambridge-based
company works with government agencies
and Fortune 1000 firms, bringing together
their executives, managers, end users,
and other stakeholders to develop new
ideas and move them to deployment. During
the CEW, CellExchange specialists in
enterprise solutions and technology
work with clients to: |
|
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Generate new, high-impact ideas using
CellExchange's "left and right
hand" framework; |
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Identify "lazy assets"
that can benefit from new technologies
and improved processes; |
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Tap MIT and Harvard resources to
drive a strategic, problem-solving approach; |
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Create a compelling,
complete business case with quantitative
and qualitative benefits. |
|
| Following the
CEW, Defense Agency expects to move
into CellExchange's Rapid Application
Development (RAD) phase, a 15-week
program designed to accelerate deployment
of enterprise IT solutions.
While Defense Agency began this endeavor
with a goal in mind, the CellExchange
CEW enabled the agency to sharpen
their focus and create a FIIG maintenance
program in four logical, planned phases
that will simplify catalog updates,
automate FIIG publication in multiple
formats, align the process with industry
standards, and automate the entire
FIIG process, with links to multiple
organizations.
The CEW has also provided Defense
Agency with a framework to incorporate
Rapid Application Development (RAD)
and create a deployment plan to quickly
capture the maximum benefits of the
strategy. Defense Agency expects to
participate in a CEW for each of the
four phases. |
|
| Solution
Benefits |
During the CEW, Defense Agency developed
a proposed solution that will reduce
the FIIG turnaround time, standardize
the processes, and leverage standard
technologies and frameworks.
Defense Agency estimates that this new
process, which will centralize purchasing,
enable competitive bidding, increase
visibility of information, and prevent
duplicated efforts, could reduce the
cost of purchasing for the DoD by one
percent, resulting in a $1 billion savings.
In addition, by automating the process,
Defense Agency will save on manpower
costs and expects to reduce the number
of catalogers from more than 400 to
200 or less, resulting in an additional
$10 to $20 million in savings. Finally,
by reducing the processing time from
180 to less than 30 days, cutting in
half the number of FTEs required and
reducing hardware maintenance and software
licensing costs, there could be an additional
$500,000 in savings.
These cost savings will enable Defense
Agency to continue to play a leadership
role in providing important information
to the armed services, enabling agencies
to make the best use of their budgets. |
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