Defense Logistics Agency (Nov. 8, 2006): "Customer Pay" paid off for DLA's military customers.Some military maintenance depots got parts and supplies faster and cheaper, and America's military services got refurbished equipment returned sooner thanks to a pilot program called Customer Pay.
The program demonstrated early wins supporting the rebuilding of the Army's High-Mobility Multipurpose mul·ti·pur·pose
Designed or used for several purposes: a multipurpose room; multipurpose software.
Adjective Wheeled Vehicle Noun 1. wheeled vehicle - a vehicle that moves on wheels and usually has a container for transporting things or people; "the oldest known wheeled vehicles were found in Sumer and Syria and date from around 3500 BC"
axle - a shaft on which a wheel rotates , commonly known as the Humvee.
Customer Pay, a partnership between Department of Defense elements and a defense contractor Noun 1. defense contractor - a contractor concerned with the development and manufacture of systems of defense
armed forces, armed services, military, military machine, war machine - the military forces of a nation; "their military is the largest in the region"; , pays contractors and suppliers at the point of delivery. That reduces the need for millions of dollars of Army inventory and lowers prices for spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used.
Spare parts are also called “spares. . Additionally, supply chain costs are reduced since management at the production line minimizes handling by government personnel.
The concept was developed in a pilot program involving the Army Tank-automotive and Armaments Command; the Defense Logistics Agency Noun 1. Defense Logistics Agency - a logistics combat support agency in the Department of Defense; provides worldwide support for military missions
Defense Department, Department of Defense, DoD, United States Department of Defense, Defense - the federal department and its field activity, the Defense Supply Center Columbus; the AM General Corp.; two Army maintenance depots; and the Maine Military Authority. Results from the pilot show dramatically increased performance support and greatly reduced costs to rebuild Humvees.
"Customer Pay is a vivid glimpse of our future. [It] will be seen as a pioneer in DLA's support to the Services' industrial sites by leveraging the relative strengths of our industry, Service, and DLA DLA
dog leukocyte antigen. partners. It has brought new efficiency and effectiveness to our logistics solutions," said James McClaugherty, DSCC DSCC Democratic Senatorial Campaign Committee
DSCC Defense Supply Center Columbus (US DoD)
DSCC Dyersburg State Community College (Dyersburg, TN) deputy commander.
Customer Pay required DSCC personnel to adjust their thinking, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Eric Tranter, chief of DSCC's Tactical Vehicles Support Division.
"To best understand the challenges of Customer Pay, you have to think retail support, not the usual DLA wholesale approach," he said. "This equates to constantly working with the people at the various depots and maintenance sites ... providing responses within hours and actual support in a few days. All of our people have done a great job making this happen because they applied a retail focus to their work with urgency and flexibility. If you take a business-as-usual approach to anything such as Customer Pay, it won't work."
The contractor, AM General, took over tasks formerly managed by government employees: requirements forecasting, supply chain and inventory management, parts requisition from the DoD supply system, parts distribution to maintenance lines, identification of quality issues, and more. The maintenance depots--Letterkenny Army Depot in Chambersburg, Pa., Red River Army Depot in Texarkana, Texas Texarkana, Texas is a municipal designation in Bowie County, Texas, United States which forms the western half of Texarkana. It is separated from Texarkana, Arkansas, by State Line Avenue. , and Maine Military Authority, in Lime-stone, Maine--were able to focus on the actual rebuilding of the vehicles instead of inventory needs.
DSCC is the DLA program manager for the process, awards and administers the contract, and is the parts integrator and source of supply to the contractor and the maintenance depots. TACOM TACOM Tank-Automotive and Armaments Command (US Army)
TACOM Tactical Communications
TACOM Tactical Command
TACOM Tank-Automotive and Armament Command
TACOM Theater Army Command
TACOM Tactical Army Command
TACOM Tactical Army COM is the Customer Pay program manager, the source of supply to AM General, the initial production test lead, the weapons system and rebuilding manager, the centralized e-business manager, and a funding source.
The changes allow DoD to use the most cost-effective sources in the supply chain for spare parts and then provide a back-up supply chain in case of support problems. This safety net creates a significant reduction of inventory while improving supply support performance.
AM General is required to maintain a 30- to 60-day supply of the 1,241 parts included in the pilot project. Results show that supply level seemed to work. The rate of incomplete vehicles dropped by 83 percent at Red River Army Depot and by 100 percent at Letterkenny Army Depot Letterkenny Army Depot, the Center of Industrial and Technical Excellence for Air Defense and Tactical Missile Systems, was established in 1942. The depot is under the command structure of the U.S. Army Aviation and Missile Command (AMCOM). . The dual supply chains prevented parts outages on the line and addressed the challenge posed by a change in 45 percent of the items used to support each depot.
Thanks to Customer Pay, almost $820,000 was saved in reduced depot supply chain manpower expenses in just over three months last winter. Spare parts costs were reduced by leveraging the two supply chains, and the total cost of refurbishing the vehicle was reduced.
"The value of Customer Pay is that it allows DLA and the Army depots to move past just coordinating parts support for a Humvee production line to being interdependent partners," said Army Col. Scott D. Fabozzi, director of DSCC's Land Customer Operations.
The contract was awarded Nov. 1, 2005, and implemented just 78 days later at Letterkenny and Red River. During the pilot, AM General provided 4.1 million parts to the production lines from the 1,200-plus national stock numbers managed under Customer Pay. The depots produced more than 6,029 vehicles under the program, with only 179 coded as incomplete, or G-coded, early in the program at Red River.
Before Customer Pay, both depots had vehicles that were G-coded on a daily basis. At one point that backlog exceeded more than 1,300 incomplete vehicles. Under Customer Pay's best business practices approach, the Army's G-coded problems with its Humvee RECAP lines have been significantly reduced and, in many cases, eliminated.
The Customer Pay partnership helped Letterkenny earn the Shingo Prize for excellence in manufacturing The Shingo Prize for Excellence in Manufacturing is awarded annually to by Utah State University to North American companies that "achieve world-class manufacturing status." It was established in 1988 and is named in honor of Shigeo Shingo. External links
DSCC serves more than 24,000 military and civilian customers and 10,000 contractors as one of the largest suppliers of weapon systems parts in the world. DSCC buys materiel ma·te·ri·el or ma·té·ri·el
The equipment, apparatus, and supplies of a military force or other organization. See Synonyms at equipment. , monitors inventory levels, maintains technical data, and assures quality conformance of spare parts, which vary from such common items as vehicle parts and accessories to complex mechanical and electronic repair parts for weapon systems.
DLA provides supply support and technical and logistics services to the U.S. military services and several federal civilian agencies. Headquartered at Fort Belvoir Fort Belvoir is a United States military installation and a census-designated place (CDP) in Fairfax County, Virginia, United States. The population was 7,176 at the 2000 census. , Va., the agency is the one source for nearly every consumable item, whether for combat readiness, emergency preparedness, or day-to-day operations. More information about DLA and DSCC is available at <http://www.dla.mil>.