Data Centers

Managing Performance Based Logistics Success For A Multibillion-Dollar Aeronautics Company

Date Added: Jul 2009
Format: HTML

A leading aeronautics company that specializes in military aircraft products was looking to improve its existing performance based logistics (PBL) strategies. To this end, the company had fixed up long-term objectives. These included changing operations from issue management to risk mitigation, reducing analysts' non value-added time so as to enhance efficiency, getting a better understanding of the factors that is driving PBL performance, improving strategic decision making. In partnership with Deloitte, the company deployed an ongoing approach for tackling the PBL issues. The solution involved key steps such as isolating the key performance indicators (KPIs) and setting a common set of these across different programs and defining correlation between operational and financial metrics. It also involved building a financial hierarchy to capture the data. As part of this process the existing three level financial work breakdown structure got changed to a seven level financial work breakdown structure. This will assist in getting a complete understanding up to the event level so as to better analyze PBL performance drivers. Part of the solution also included providing portal access to the results and drill-down capability to various levels in the organization and changing the reporting philosophy of the programs, this allows users to focus more on analysis. So far the efforts are on target in realizing the set goals. Now, rather than wasting non-value added time for data mining, the analysts are analyzing the data and developing creative solutions to business problems.