12/02/16
SERVITIZATION:
CONFUSED CUSTOMER
COURTS
COMPLACENT CONTRACTOR
Simon Davis-Poynter
MA(Cantab) MSc MA CEng MRAeS
2 February 2016
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Jigsaw
Thinking
Limited
2
Jigsaw
Thinking
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Personal Introduction
■  Aerosystems Engineer
■  Portfolio, Programme & Project Manager
■  36½ years as an RAF Engineering Officer
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Operational: Maintenance, Fleet Management
Acquisition: PPPM, Trials, Logistics Support Analysis
Requirements: Electronic Warfare systems
Safety & Airworthiness
Intelligence
■  3 years as a ‘Low-Life Scumbag Consultant’
●  Prog/Proj Assurance/Intervention
●  Contracting for Availability & Performance Management
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Plan
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Background
Contracting for Availability
Introducing the 2 Case Studies
Different Perspectives
Attitudes and Behaviours
Discussion
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Jigsaw
Thinking
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Background
■  Contracting for Availability evolution started in 2000
■  MoD: wish to save significant amounts of money (40%)
■  Industry: strategic move into support to ‘guarantee’ cashflow during lean design/manufacture years
■  Government: Defence Industrial Strategy; Outsourcing
■  Air Platforms
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Combat Air
Air Support
Training
Helicopters
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Jigsaw
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Traditional Support Scenario
Goods-Dominant Logic
Procurement
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Based on transactions/volume
Numerous enabling contracts
Req’ts contracted inconsistently
Cumbersome/slow
Short term
Few performance measures
Incentives for failure
Distribution
•  Numerous supply stages
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Batching of assets
High asset idle times
High Mngt admin
High Lead times
Low responsiveness
Incentives not aligned to output
OEM’s
•  Profit based on volume
1st Line
•  Little risk passed from MoD
•  Enabling contracts
•  Few performance based
Repair Agents
•  Traditionally based at 3rd Line
•  Part of MoD
•  Industry used where beneficial
2nd Line
•  Citadel concept
•  (i.e. H. shelters/30 days
stock)
•  Full Depth B at each base
•  Citadel concept (H.
shelters)
•  Forward store - key LRU’s
•  Robs
•  ‘D’ states
•  56% availability of aircraft
Jigsaw
Thinking
Limited
Vision for Future Support
Depth:
•  Jointly resourced, managed by Prime Service Providers
•  Lean maintenance organisation
•  Joint Fleet & Logistics Management Team
•  Integrated on-base support
•  Aircraft specific on-base technical training
•  Support to Forward
•  Industry managed by Prime Service Providers
•  Facilities rationalised
•  International support maintained
Jigsaw
Thinking
Limited
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Contracting for Availability
(MoD Perspective)
■  Delivery of current outputs/outcomes
●  Availability-based KPIs
■  Preservation of future outputs/outcomes
●  Sustainability-based KPIs
■  Continuous Improvement
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Economy
Efficiency
Effectiveness
Risk reduction
■  Always to be underwritten by Safety & Airworthiness
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The Contractual ‘Black Box(es)’
Available
Aircraft to
Customer
Q Q Q Q
Q Q Q Q
InService
Support
Tech Info
from PDS
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4
4
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Tech Advice
to TAA &
CAMO
Raw Data
from ISS
Post
Design
Services
Through Life
Needs to be
maintained
through Ctt Cx
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The Service Boundary & Key Performance
Indicators
KPI 3
KPI 2
GFA
Spares to
Forward
KPI 1
Tech Support
to Forward
Aircraft Availability
FORWARD
KPI 5
IBAs
CONTRACTED SERVICE
Manage Business
Manage Fleet
AC Maint Tech Info
Design Fleet Mgt
Manage Assets
SPARES
New Build /
Repairable
Structures Avionics
Engines Sensors
Gen Sys Wpn Sys
Jigsaw
Thinking
Limited
Two Case Studies
Case A - ‘Good’
■  Through-Life Support of
a Combat Air Fleet
●  Large fleet > 100 aircraft
●  Small fighter aircraft
●  Specialist integrated
military design &
technology
●  In Service 1970s
●  Out of Service 2020s
●  Availability Ctt since 2006
●  V high GFx dependency
Case B - ‘Bad’
■  Whole-Life Support of
an Air Support Fleet
●  Small fleet c 5 aircraft
●  Large aircraft
●  Platform commercially
derived; Complex Mission
System added afterwards
●  In Service 1970s
●  Out of Service 2020s
●  Availability Ctt since 2005
●  High GFx dependency
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Jigsaw
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Two Case Studies
Case A - ‘Good’
■  UK Prime Contractor
■  Risks managed
■  Aircraft Maint, Asset Mgt
& Tech Info integrated
■  Original Design
Organization
■  RAF embedded
■  Customer ‘Satisfied’
Case B - ‘Bad’
■  US Prime Contractor
■  Risks Avoided
■  Aircraft Maint, Asset Mgt
& Tech Info subcontracted
■  Created Design
Organization
■  Solely Contractor
■  Customer ‘Dissatisfied’
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Jigsaw
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Organizational Design Perspective?
Multiple Dimensions of an Organizational Model
Defence
System structure
Organizational Form
Past relationship(s)
Rational self
Conscience
Input
System structure
Transformation
System processes
Emotion
System content
Cognition
Organizational Dynamics
Present relationship(s)
Focal relationship(s)
Instinctual self
Idealized self
System processes
Transformation
System content
Output
Psychodynamic Structure
Input
Output
Conflict
Psychodynamic Process
Relationships
Defence
Rational self
Conscience
Past relationship(s)
Emotion
Cognition
Present relationship(s)
Instinctual self
Idealized self
Conflict
Focal relationship(s)
Organizational Form
Organizational Dynamics
Psychodynamic Structure
Jigsaw
Psychodynamic
Process
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Thinking
Limited
Relationships
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Economic Transactions Perspective?
(Carliss Y. Baldwin)
Thin
Crossing
Point
Thick
Crossing
Point
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Jigsaw
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Viable Systems Perspective?
(Stafford Beer)
Homeostat 2 Present vs Future Policy Horizon Intelligence Scanning Cohesion Environment Audit Co-­‐ordina%on Adap%ve Delivery Im
m
ple
n a%o
ent
Homeostat 1 Opera%ons vs Markets Jigsaw
Thinking
Limited
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ATTAC Recursions (for MoD)
UK Government Policy Outcomes
UK Government Foreign Policy & Security Objec%ves Military Poten%al Customer Consolida%on Tornado Capability (aka ‘Tornado Effect’?) (+ Typhoon Capability + …) Service Integra%on ATTAC ( + ROCET + CUS(P) + Role Eqpt + Wpns + CommodiEes + POL + Air/Ground Crew + …) ATTAC Value Stream Avionics Value Stream (+ CMU + Structures + GenSys + GFx + SCM + DA Eng + EA Eng + …)
SELEX Contract Deliverables (+ BAES Rochester+ LITEF + Honeywell + …)
DSG Sealand Services (+ …)
Jigsaw
Thinking
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Multiple Axes of Power_Ambiguity/Complexity
Military Effec%veness Government Policies (Efficiency) Shareholder Expecta%ons (Economy = Profit) Jigsaw
Thinking
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Iden-ty; Boundaries; Here/Now vs There/
Then Viable Systems Model
(after Stafford Beer)
Leadership S5 -­‐ Policy Monitor S3/S4 Homeostat: Balancing Internal/Present vs External/Future focus Opportuni%es/Threats External Focus; ‘There & Then’; Strategic Mgt Ethos Intelligence S4 -­‐ Planning Internal Focus; ‘Here & Now’; Day-­‐to-­‐Day Mgt Business & Opera-onal Environments Strengths/Weaknesses Variety Mgt S3 -­‐ Control Resource/Process Control & Audit Command & Feedback S1 -­‐ Implementa%on Outcomes Stability Processes Opera%on 1 Processes Opera%on 2 Processes Opera%on 3 Processes Opera%on 4 Processes Opera%on 5 Processes Opera%on N Rigid vs Rou-ne; Flexible vs Duress; An--­‐Oscillatory; First among Equals. S2 -­‐ Coordina%on Interac-ve; Symbio-c; Complex; Mul-dimensional. Risks/Issues/Benefits Trade-­‐Offs & Damping Jigsaw
Thinking
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Focus on System 3 (Control/Cohesion)
■  Ashby’s Law of Requisite Variety
●  “Only variety absorbs variety”
■  Multiple agendas multiply variety
■  Difficult to manage this through formal ‘up front’ methods
eg contractual clauses to legislate vs any eventuality
●  Sod’s Law of Unintended Consequences
■  Relationships offer an informal mechanism to deal with
unforeseen (unforecastable) variabilities as they occur
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Jigsaw
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Customer Behaviours, in general
■  Commercial Function eager to write contracts with allencompassing narrative clauses
●  Driven by Government (political) agenda re ‘Single-Source’
Contracts
■  Strong current Commercial agenda to ‘compete’
■  RAF (Customer), despite holding the money, is
commercially naïve
●  ‘Free Bar’ mentality, driven by perceived need for ‘flexibility’
■  Project Team (Delivery Agent) risk averse: concerned re
reputation
●  Rush to pass all Customer demands onto Contractor
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Jigsaw
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Contractor Behaviours
Case A - ‘Good’
■  Frequent and regular
touch-points at all levels
■  Cordial ‘joint’ ownership
of issues
■  ‘Open Book’
■  ‘Contract in the drawer’
■  ‘Transformational’
attitudes and behaviours
Case B - ‘Bad’
■  Irregular meetings at
higher and strategic
level
■  Problems ‘thrown over
the wall’
■  Information hiding
■  ‘Contract on the table’
■  ‘Transactional’ attitudes
and behaviours
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Jigsaw
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Conclusions
■  The definition of insanity is doing the same thing over
and over again, but expecting different results
●  Albert Einstein?
■  Anyone who tries to make things completely fool-proof
merely underestimates the ingenuity of complete fools
●  Douglas Adams
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DISCUSSION
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