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					                                                PLAN
Last Update: October 14, 2002
                  OBJECTIVES & PRINCIPLES CL
                  APPLICATION IN RAILWAY SYSTEMS SUPPORT CL
                     Operations & Support
                         how to define & contract logistics services
                  APPLICATION IN IT SERVICES JC
                     Information Services Support
                         sharing statistical and probabilistic tools
                  BENEFITS (RAILWAY SYSTEM SUPPORT) CL
                     Time & Money
                     Shared Logical Data Base
                  BENEFITS (IT SERVICES) JC
                     Pertinence
                     Exchanging and Analysing Data
                  SIMILARITIES & ANALOGIES SN
                     Information Services Support
                                 sharing QSP tools

                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                           Principles   LOGISTIC IMPACT                                                  2-CL

                                                                Inspired from US DSMC ‟What is Logistics?‟
Last Update: October 14, 2002

                                    TIERED LOGISTIC DEFINITION & e-B
                                Corporate STRATEGIC LEVEL HLAM
                         Strategic
                                   Company Economic Core-Business
                         Logistics
                                 Capabilities Power      Trade-off

                              Executive OPERATIVE LEVEL algorithms                                           IT
                        Operative
                                  Acquisition Logistic   Make-or-buy
                         Logistics
                                   Logistics Engineering Outsourcing
                         Production OPERATION LEVEL data mapping*dictionary
                         Applied               Product   Equipment
                        LogisticsSustaining through-life  Trade-off
                                             management  E-sourcing
                                                               .
                                                   http://www.perfel.org
                                                                                                 PERFEL
                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                    Principles   PRODUCT VIEW STRUCTURE                                                         3-CL

Last Update: October 14, 2002

                                    integration from component to sub -assembly
                                            along the add-value chain
                                        supply item & provide information
                                            CRM axis
                                            commerce

                                                                       C2B

                                 Business plan
                                      CWBS                      Need analysis plan
                                                                          PBS
                                   B2C                       acquisition logistics process
                                                        Design-definemanufacturing support
                                                 System engineering plan                       product
                                                                                                Times )
                                                          WBS
                          ERP axis                                                           SCM axis
                                 industry                               B2B


                                             -                   -

                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com               2002/10/06 ILC2002-München
                                  PRINCIPLES   ACTIVITIES                                            4-CL

Last Update: October 14, 2002
                                                                                         How to
                                                                                          prepare
                                                                                         holding

    How to
     increase
   desorder


                                                                                            How to
                                                                                             prepare
                                                                                           bankrutp

                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                  CASE-CL   THE CONTEXT                                             5-CL

Last Update: October 14, 2002




                                 Operation on 20 to 100 km railtrack
                                    360 workers / 5 bivouacs/12 moving*years
                                    High level of safety / Accurate control
                                    Around 10 working days/year lost (4 M €)
                                 Support
                                    8 trains/ 160 caravans/ 23 toilets
                                    FOD 1M€/year

                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                    CASE-CL     LOGISTICS COST DRIVING                                              6-CL

Last Update: October 14, 2002


             Key points
               Corporate
               Life-cycle e-vision
               Neither stop operation
               Excecutive
               Tip to top
               Tile by tile
               Information system
               Provide data
               Order and data
          At the right time to the right
          man in the right place.


           No cost killer manager! Improvement sponsored on hidden cost
                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                CASE-CL   SOWS iaw HDBK 502                                          7-CL

Last Update: October 14, 2002     integrating logistic team




                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                         CASE-CL   LESSON LEARNED                                                   8-SN

Last Update: October 14, 2002



                   The pilot of re-engineering must be co-opted

                   Men are the only available resource for change

                   Isomorphism between the “shared logical data base”
                    and the skill level relationship is required




                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                         CASES-JC   APPLICATION IN IT                                               9-JC

Last Update: October 14, 2002




                  Background

                  Case Study 1

                  Case Study 2




                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                   CASES-JC     Background – Case 1                                                10-JC

Last Update: October 14, 2002



                  Christmas 1995
                     750 of my colleagues went home for the
                     vacation working for Rolls-Royce.
                  January 2nd 1996
                    they were informed they were now working
                     for EDS
                  Resources
                    The whole of IT computers, software,
                     telephones and mailing were all transferred


                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                           CASES-JC   Case 1 Continued                                             11-JC

Last Update: October 14, 2002



                  Exceptions
                    About 100 people who wrote programs to
                     solve specific problems (as others would
                     use slide rules or log tables) remained.
                  Eventually, even these people went




                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                         CASES-JC   Case 2                                         12-JC

Last Update: October 14, 2002



                  But not to EDS
                  To Data Systems & Solutions
                    RR joined forces with SAIC to produce a
                     Joint Venture on February 1999

                  Logistics Support
                    Mainly the IT processes concerned with the
                     aftermarket
                                 engine monitoring, spares forecasting, in-service
                                  data recording and analysis


                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                         CASES-JC   What did RR gain?                                              13-JC

Last Update: October 14, 2002



                  IT has always been a very
                    Rapidly changing business
                    Very expensive to keep up

                  Users’ demands
                    Ahead of supply
                    Different areas using different products
                    Piecemeal software development



                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                     CASES-JC   RR’s gain                                          14-JC

Last Update: October 14, 2002



                  IT is EDS core business
                    Invest in R&D
                    Introduce new technology quicker
                    Rationalise IT products

                  Incentives that would stretch EDS but were
                   monitorable.




                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                 CASES-JC   Case 2 – Joint Venture                                                 15-JC

Last Update: October 14, 2002



                  RR core business was as an OEM to make and
                   sell engines
                    Engine monitoring was not working as well
                      as in the car industry (it was perceived)
                    The aftermarket analysis was something RR
                      did for the customer rather than for itself
                      but, nonetheless it did it very well
                  RR and SAIC had worked together on a
                   number of projects reasonably successfully



                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                CASES-JC   JV continued                                            16-JC

Last Update: October 14, 2002



                  Management structure established

                         People were transferred selectively as the
                          business grew

                     People with specialist skills were also hired
                      from other companies
                  In the meantime RR has changed its image
                   from an OEM to a service provider


                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                                                  BENEFUTS-CL   TIME & MONEY                                              17-CL
                                                                   http://www.logistics-2000-versailles.net/site/followup.htm
Last Update: October 14, 2002

                                                                smart supply and sustain information
                                                                       fractal approach & subsidiary

                                                                       enterprise integration


                                                                 suppliers & manufacturers customers oriented
                                                                                Operations & Support
                                                                         operations & support
                                                            PRODUCT and/or SERVICE COMMAND
             component integration
                                     virtual prototyping




                                                                                supply chain / the axis of integration
                                                                                          „arsenal of      Venice‟
                                                                    supply chain        - new constructions                - overhauls
                                                                    ravitaillement       constructions neuves               réparations
                                                                        -                       -

                                                           How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com                                          2002/10/06 ILC2002-München
                BENEFITS-CL   SHARED LOGICAL DATA BASE                                                          18-CL

Last Update: October 14, 2002
                                      shared logical data base
                                    (tactical or production level)




                      Paper Flow
                 Point to point exchange                                 Shared logical Databases
           between work areas and organizations                          Interchange of complete product data
                                                                             via a shared ‘logical’ database




                                                                                           With courtesy UK C e-B
                                             Digital Exchange
                                                  Data interchange via
                                                   neutral standards
                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com           2002/10/06 ILC2002-München
                         BENEFITS-JC   Problems - Case 1                                           19-JC

Last Update: October 14, 2002



                  Many did not (and still do not) see EDS as the
                   best IT provider

                  The rules of engagement were ill-defined –
                   particularly for those in IT that did not move

                  RR has not relinquished responsibility

                  But for all that, I guess it has been successful


                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                       Case 2
                                         BENEFITS-JC
                                                                                                   20-JC

Last Update: October 14, 2002
                                Changing Business
                  Rolls-Royce
                    From OEM to Service Provider
                    Skills not in-house but in JV
                    Loss of direct control

                  DS&S
                    Expand customer base
                    New applications – new developments
                    Less dependent/responsive to RR


                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                          BENEFITS JC   Case 2 continued                                           21-JC

Last Update: October 14, 2002



                  3 years in and the child is starting to develop
                   well

                  It is still overly bureaucratic and slow to take
                   up new opportunities

                  The parent still does not trust it and keeps it
                   on a rather tight rein

                  But it is profitable and starting to win new
                   business

                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                           BENEFITS JC   Lessons Learned                                           22-JC

Last Update: October 14, 2002



                  The rules of engagement have to be
                   understood but flexible

                  The parent, like any parent, has to know when
                   to let go

                  The parent has to be open with its own staff –
                   they need to know what is expected from the
                   arrangement (by both sides)

                  TRUST

                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                  SIMILARITIES                                                     23-SN

Last Update: October 14, 2002



                  Use internetworking to succeed outsourcing
                    Improve connectity to control outsourcing

                  SOWs are not impacted by the outsourcing
                          Should be well defined for simple contracting

                  Outsourced activities are re-engineered

                  Enhance your business by outsourcing
                    Outsourcing allows business to concentrate
                     on their core competencies

                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                    FOLLOW-UP                                                      24-SN

Last Update: October 14, 2002



                  Copies on CD-ROM by mail on request by
                   mailing professional cards to the moderator
                  Any comments welcome
                  Sylvain.noel@jln-intl.com
                  Christian.lapaque@europe-logistics-
                   industry.net
                  John.crocker@ds-s.com




                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München
                                URL references                                                       25

Last Update: October 14, 2002



                   SAN DIEGO 1999 track “Agility” Information is an Asset
                    http://www.21cc.org/1999EXPO/EXPO99REG_Final.pdf
                   LONDON 2000 Maintenance-Repair-Operation * Smart
                    Supply in Aerospace Defense
                   http://www.smi-online.co.uk/conferences/conf_
                   USA High Level Activities Model
                  http://www.dsmc.dsm.mil/pubs/pdf/pm_articles00.htm#L
                   VERSAILLES Logistics: Your Strategy for IT Era
                  http://www.logistics-2000-versailles.net/site/xvar-bi/followup-zind.htm
                   PARIS Internetworking or Not Working
                  http://www.europe-logistics-industry.net

                    How to Outsource Life-cycle Support within a Program - Keys for Success
John.Crocker@DS-S.com christian.lapaque@jln-intl.com sylvain.noel@jln-intl.com   2002/10/06 ILC2002-München

				
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