DTIC ADA564063: Air Force Materiel Command Reorganization Analysis

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Air Force Materiel Command Reorganization Analysis: Final Report
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Air Force
Materiel Command
Reorganization Analysis
Final Report
Robert S. Tripp, Kristin F. Lynch, Daniel M. Romano,
William Shelton, John A. Ausink, Chelsea Kaihoi Duran,
Robert G. DeFeo, David W. George, Raymond E. Conley,
Bernard Fox, Jerry M. Sollinger
Prepared for the United States Air Force
Approved for public release; distribution unlimited
PROJECT AIR FORCE
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Air Force under Contract F49642-01-C-0003. Further information may
be obtained from the Strategic Planning Division, Directorate of Plans,
Hq USAF.
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Preface
The Budget Control Act of 2011 (Pub L. 112-25) directed cuts in defense spending. For
the U.S. Air Force, these cuts equate to initial reductions of 16,500 civilian authoriza-
tions, with nearly 4,500 coming from Air Force Materiel Command (AFMC). Given
the requirement to reduce civilian manpower, the AFMC leadership team undertook a
major reorganization to achieve the required reductions while implementing the Office
of the Secretary of Defense product support business model, which provides cradle-
to-grave weapon system program management. Congress directed the Secretary of
the Air Force to have a federally funded research and development center review the
proposed reorganization. The purpose of this analysis is to provide an independent
review and assessment of the reorganization proposed by AFMC as required by the
National Defense Authorization Act for 2012. The resulting assessment focuses on
how the reorganization would affect product development (including support-system
design) and operations support (depot maintenance and Air Force supply chain opera-
tions). In addition, it suggests alternatives and other areas for further AFMC process
improvement.
The research reported here was sponsored by the Secretary of the Air Force and
conducted within the Resource Management Program of RAND Project AIR FORCE
as part of the project “Evaluation of AFMC Reorganization.”
This monograph will be of interest to all weapon system life-cycle management
stakeholders, including members of Congress, congressional staffs, and senior leaders
in the U.S. Department of Defense, Air Force, and other services and their staffs.
RAND Project AIR FORCE
RAND Project AIR FORCE (PAF), a division of the RAND Corporation, is the U.S.
Air Force’s federally funded research and development center for studies and analyses.
PAF provides the Air Force with independent analyses of policy alternatives affecting
the development, employment, combat readiness, and support of current and future
air, space, and cyber forces. Research is conducted in four programs: Force Moderniza-
iii
iv Air Force Materiel Command Reorganization Analysis: Final Report
tion and Employment; Manpower, Personnel, and Training; Resource Management;
and Strategy and Doctrine.
Additional information about PAF is available on our website:
http://www.rand.org/paf
Contents
Preface ................................................................................................. iii
Figures .................................................................................................vii
Tables .................................................................................................. ix
Summary .............................................................................................. xi
Acknowledgments ................................................................................. xvii
Abbreviations ........................................................................................ xix
ChAPTer One
Background, Purpose, and Analytic Approach ................................................. 1
Background ............................................................................................. 1
Purpose .................................................................................................. 3
Analytic Approach ..................................................................................... 4
Organization of This Monograph .................................................................... 6
ChAPTer TwO
Air Force Materiel Command’s Organizational Structure.................................... 7
Current Organizational Structure ................................................................... 7
Proposed Reorganization .............................................................................. 7
The Air Force Life Cycle Management Center ................................................... 9
The Air Force Sustainment Center ...............................................................10
Summary of Air Force Life-Cycle Management Under the Proposed Reorganization .......13
ChAPTer Three
Manpower Comparison: Current Baseline to Proposed restructure ......................15
Data and Background Information .................................................................15
Changes in the Disposition of Major Functions ..................................................16
Disposition of Manpower Authorizations, by Functional Grouping .........................16
Disposition of Manpower Authorizations, by Organization ..................................17
Authorization Cuts at the Organizational Level of Detail ...................................... 20
Manpower Savings Resulting from Authorization Cuts ..........................................21
Summary of Manpower Disposition Under the Proposed Reorganization ................... 22
v
vi Air Force Materiel Command Reorganization Analysis: Final Report
ChAPTer FOur
Life-Cycle Management Alternatives: An Assessment of Two Options ................... 23
The Current Organizational Construct ........................................................... 24
The Proposed Organizational Construct .......................................................... 27
Implications of the Proposed Reorganization for Support to the Warfighter and
Life-Cycle Management .........................................................................29
Operational-Level Goals ...........................................................................29
Opportunities and Challenges Created by the Proposed Reorganization ....................31
Air Force Materiel Command Mitigation Strategies ...........................................33
Assessment of the Reorganization’s Effect on Warfighter Support and Life-Cycle
Management Effectiveness and Efficiency ................................................ 34
ChAPTer Five
Options for improving Air Force Life-Cycle Management ..................................37
Option 1: Improve Enterprise Support-System Design Planning .............................. 38
Option 2: Enforce Enterprise Support-System Design Planning Guidance Early in the
Product Development Process ................................................................. 42
Option 3: Standardize Best-Practice Product Development and Operations Support
Core Processes ....................................................................................45
Option 4: Improve Command and Control Support to the Warfighter ...................... 50
Other Areas for Consideration ..................................................................... 56
ChAPTer Six
Conclusions and recommendations .............................................................57
Recommendations ....................................................................................57
APPenDixeS
A. national Defense Authorization Act for Fiscal Year 2012 requirements and
rAnD Project Air FOrCe Project Description Taskings .............................59
B. A history of Air Force Life-Cycle Management ..........................................63
C. Annotated Bibliography of related work................................................. 99
D. interview List for the AFMC reorganization Analysis ................................ 135
e. Civilian Pay Calculations ................................................................... 137
F. Special interest Topic: Further Consolidate Mission-Area Support ................ 141
G. Letter and Attachment from Secretary of the Air Force Michael B. Donley
to Senator Orrin G. hatch, December 9, 2011 .......................................... 145
references ........................................................................................... 155
Figures
1.1. OSD Product Support Business Model ................................................ 3
1.2. Analytic Approach ........................................................................ 5
2.1. Current AFMC 12-Center Construct .................................................. 8
2.2. AFMC-Proposed Five-Center Construct .............................................. 8
2.3. Proposed AFLCMC Structure .......................................................... 9
2.4. Proposed AFSC Structure ..............................................................11
2.5. The Proposed Reorganization Creates Organizations to Maintain
Communication Channels .............................................................13
3.1. Current Manpower Authorizations, by Organization ...............................19
3.2. Proposed Manpower Authorizations in the New Construct,
by Organization ......................................................................... 20
4.1. How Life-Cycle Management Focus Changes over Time ......................... 24
4.2. Division of Product Development Functions Between Organizations in the
Current Life-Cycle Management Construct .........................................25
4.3. Proposed Boundaries Between Product Development/Support-System
Design and Operations Support Under the New Construct ...................... 28
4.4. The System Program Office Transfers Some Program Responsibility, but
the Execution Chain Remains the Same in the New Five-Center Construct ... 28
5.1. Activity Characteristics Provide Insights into Appropriate Organic/
Outsource Alternatives ................................................................. 40
5.2. Model for an AFLCMC Logistics Staff to Focus on Enterprise
Support-System Design Planning Processes ......................................... 42
5.3. Model for an A&L Structure Within the SAE to Enforce Support-System
Design Considerations in Product Development Processes........................ 44
5.4. Creating Efficiencies by Centralizing Some C-130 Intermediate-Level
Maintenance Workloads ................................................................47
5.5. Increasing Available Aircraft by Reducing C-130 Phase Flow Times at CRFs ...47
5.6. Standardizing, Integrating, and Streamlining Product Development and
Operations Support Best Practices with an AFLCMC Logistics Staff and an
AFSC Acquisition Staff .................................................................49
5.7. Notional OPLAN Fueled and Armed Sortie Requirements ........................51
5.8. Notional Effects of ACS Resource Constraints on Operations ....................52
vii