AFSC’s Road to $1 Billion Published Aug. 22, 2013 By Brandice J. O'Brien Tinker Public Affairs TINKER AIR FORCE BASE, Okla. -- In a time where budget constraints and sequestration pose bumps, uneven pavement and reconstruction in the Department of Defense, Air Force Sustainment Center senior leadership has mapped a detour. With support from personnel, the center is traveling the "Road to $1 Billion." To date, the center is nearly two-thirds of the way there, having already saved more than $600 million. Presented at the tactical level, the "Road to $1 Billion" is an internal goal to focus on savings and cost avoidance. Sequestration drives a $500 billion reduction across the DOD over a 10-year period, which breaks down to $50 billion a year. The Air Force's piece of that is estimated at $12 billion a year. To achieve a lofty goal, officials said the Air Force needs to be more effective. "It's pretty amazing. Every organization has contributed," said Ross Marshall, AFSC executive director. "Air Force Sustainment Center Commander Lt. Gen. Bruce Litchfield and I are so proud of everyone for taking on the initiative to save money." In late December, General Litchfield and Mr. Marshall discussed tactical maneuvers to achieving cost avoidance and savings within the sustainment center, a $16 billion business. They proposed a $1 billion goal and asked personnel to submit projects and plans that showed a cost avoidance or savings. The initiative kicked off in January, but they allowed savings that had been recognized since the start of fiscal 2013 to be incorporated into the plan. Though there are guidelines and qualifiers, the various wings and complexes are encouraged to offer cost-savings proposals and projects. The financial management directorate lines up the criteria and computes the cost analysis. If there are savings, the total is added to the "Road to $1 Billion" tally. "We have to change our mindset from operating in a war-time environment scenario to peacetime and training environment," Mr. Marshall said. "We have to redefine what readiness means and what cost-effective readiness means." Continuous process improvements and rapid improvement events have helped tremendously. But, so have changing buying-approach processes. In the past, supply chain managers often went to original equipment manufacturers to buy engine or aircraft parts. Now, they're shopping around to different suppliers for a better price. The modification has saved the supply chain nearly $300 million. "I expected the maintenance complexes and supply chain management wings to jump in and claim most of the success. They are the biggest drivers, but I was pleasantly surprised by the involvement of everybody," Mr. Marshall said. "The air base wings, staff offices and support offices took hold of it and said 'we're going to be a part of it, too and we're going to do everything we can to help.' Seeing every organization contribute is a great tribute to the people of the sustainment center."
AFSC’s Road to $1 Billion Published Aug. 22, 2013 By Brandice J. O'Brien Tinker Public Affairs TINKER AIR FORCE BASE, Okla. -- In a time where budget constraints and sequestration pose bumps, uneven pavement and reconstruction in the Department of Defense, Air Force Sustainment Center senior leadership has mapped a detour. With support from personnel, the center is traveling the "Road to $1 Billion." To date, the center is nearly two-thirds of the way there, having already saved more than $600 million. Presented at the tactical level, the "Road to $1 Billion" is an internal goal to focus on savings and cost avoidance. Sequestration drives a $500 billion reduction across the DOD over a 10-year period, which breaks down to $50 billion a year. The Air Force's piece of that is estimated at $12 billion a year. To achieve a lofty goal, officials said the Air Force needs to be more effective. "It's pretty amazing. Every organization has contributed," said Ross Marshall, AFSC executive director. "Air Force Sustainment Center Commander Lt. Gen. Bruce Litchfield and I are so proud of everyone for taking on the initiative to save money." In late December, General Litchfield and Mr. Marshall discussed tactical maneuvers to achieving cost avoidance and savings within the sustainment center, a $16 billion business. They proposed a $1 billion goal and asked personnel to submit projects and plans that showed a cost avoidance or savings. The initiative kicked off in January, but they allowed savings that had been recognized since the start of fiscal 2013 to be incorporated into the plan. Though there are guidelines and qualifiers, the various wings and complexes are encouraged to offer cost-savings proposals and projects. The financial management directorate lines up the criteria and computes the cost analysis. If there are savings, the total is added to the "Road to $1 Billion" tally. "We have to change our mindset from operating in a war-time environment scenario to peacetime and training environment," Mr. Marshall said. "We have to redefine what readiness means and what cost-effective readiness means." Continuous process improvements and rapid improvement events have helped tremendously. But, so have changing buying-approach processes. In the past, supply chain managers often went to original equipment manufacturers to buy engine or aircraft parts. Now, they're shopping around to different suppliers for a better price. The modification has saved the supply chain nearly $300 million. "I expected the maintenance complexes and supply chain management wings to jump in and claim most of the success. They are the biggest drivers, but I was pleasantly surprised by the involvement of everybody," Mr. Marshall said. "The air base wings, staff offices and support offices took hold of it and said 'we're going to be a part of it, too and we're going to do everything we can to help.' Seeing every organization contribute is a great tribute to the people of the sustainment center."